Erste Group Bank Has Strong Forecast for MRK FY2026 Earnings

Key Points

• Erste Group Bank slightly raised its FY2026 EPS forecast for Merck to $5.14 from $5.12, which is just below the current consensus estimate of $5.16 per share.
• Merck’s latest quarterly results beat expectations, with EPS of ($1.28) and revenue of $16.29 billion, both ahead of analyst forecasts. Revenue also rose 4.9% year over year.
• Wall Street remains broadly constructive on Merck, with a consensus rating of “Moderate Buy” and an average price target of $128.18, though analysts are mixed on the stock’s near-term outlook.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Investment analysts at Erste Group Bank upped their FY2026 earnings per share (EPS) estimates for shares of Merck & Co., Inc. in a research note issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now forecasts that the company will post earnings per share of $5.14 for the year, up from their previous forecast of $5.12. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $5.16 per share.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported ($1.28) EPS for the quarter, topping analysts' consensus estimates of ($1.47) by $0.19. The firm had revenue of $16.29 billion during the quarter, compared to analysts' expectations of $15.85 billion. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The company's quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.22 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS.

Other equities analysts have also recently issued research reports about the company. TD Cowen lifted their target price on Merck & Co., Inc. from $100.00 to $120.00 and gave the stock a "hold" rating in a report on Tuesday, January 20th. Citigroup started coverage on Merck & Co., Inc. in a report on Wednesday, May 6th. They issued a "neutral" rating and a $125.00 target price for the company. Wells Fargo & Company dropped their target price on Merck & Co., Inc. from $150.00 to $145.00 and set an "overweight" rating for the company in a report on Friday, May 1st. UBS Group lifted their target price on Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Merck & Co., Inc. in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $128.18.

Merck & Co., Inc. Price Performance

Shares of Merck & Co., Inc. stock opened at $111.26 on Monday. The stock has a market cap of $274.78 billion, a price-to-earnings ratio of 31.34, a price-to-earnings-growth ratio of 2.51 and a beta of 0.18. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.06 and a current ratio of 1.30. The stock has a 50 day moving average price of $117.07 and a 200-day moving average price of $108.31. Merck & Co., Inc. has a one year low of $73.31 and a one year high of $125.14.

Hedge Funds Weigh In On Merck & Co., Inc.

A number of large investors have recently bought and sold shares of the business. Oslo Pensjonsforsikring AS purchased a new position in Merck & Co., Inc. during the 1st quarter valued at $1,401,000. HORAN Wealth LLC boosted its holdings in Merck & Co., Inc. by 1.9% during the 1st quarter. HORAN Wealth LLC now owns 46,275 shares of the company's stock valued at $5,472,000 after acquiring an additional 856 shares during the period. DJE Kapital AG purchased a new position in Merck & Co., Inc. during the 1st quarter valued at $156,693,000. Wilkerson Advisory Group LLC boosted its holdings in Merck & Co., Inc. by 333.4% during the 1st quarter. Wilkerson Advisory Group LLC now owns 3,645 shares of the company's stock valued at $438,000 after acquiring an additional 2,804 shares during the period. Finally, Stone Loft Wealth Management LLC purchased a new position in Merck & Co., Inc. during the 1st quarter valued at $330,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

Key Headlines Impacting Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Merck published a landmark Science paper on a new large-scale biocatalytic synthesis method for its investigational oral PCSK9 inhibitor, enlicitide decanoate. The work supports manufacturing scalability for a potential future cardiovascular drug and underscores progress in Merck’s pipeline. Article Title
• Positive Sentiment: Merck also became the sole testing provider for Genetix Biotherapeutics’ FDA-approved gene therapies under a five-year agreement, strengthening its BioReliance services business and adding a recurring commercialization-related revenue stream. Article Title
• Neutral Sentiment: Analyst commentary highlighted Merck as a well-prepared dividend stock despite its upcoming patent cliff, suggesting the market is still weighing long-term earnings durability rather than reacting to a single catalyst. Article Title
• Negative Sentiment: Merck is heading toward a July 27 trial over Gardasil safety claims after the vaccine reached an $8.9 billion sales peak. The litigation risk could weigh on sentiment around one of Merck’s key growth franchises, even though the company continues to defend the product’s safety record. Article Title

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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