Erste Group Bank Has Negative Opinion of MRK FY2026 Earnings

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for Merck to $2.73 from $2.75, though the estimate remains above the $2.66 analyst consensus. The firm also projects FY2027 EPS of $9.47.
• Analyst sentiment remains broadly positive, with 17 Buy ratings and 10 Holds, producing a “Moderate Buy” consensus and an average price target of $151.92.
• Merck recently reported quarterly revenue of $16.61 billion, exceeding expectations, and maintains FY2026 EPS guidance of $2.66–$2.76. The company also pays a quarterly dividend of $0.85 per share, equivalent to a 2.3% yield.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Research analysts at Erste Group Bank reduced their FY2026 earnings per share estimates for Merck & Co., Inc. in a report released on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the company will earn $2.73 per share for the year, down from their previous forecast of $2.75. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $2.66 per share. Erste Group Bank also issued estimates for Merck & Co., Inc.'s FY2027 earnings at $9.47 EPS.

A number of other equities analysts also recently commented on the stock. BMO Capital Markets lifted their price objective on shares of Merck & Co., Inc. from $142.00 to $170.00 and gave the stock an "outperform" rating in a report on Thursday, August 20th. Royal Bank Of Canada lowered their target price on shares of Merck & Co., Inc. from $150.00 to $145.00 and set a "sector perform" rating for the company in a research note on Monday. Leerink Partners increased their target price on shares of Merck & Co., Inc. from $127.00 to $161.00 and gave the stock an "outperform" rating in a report on Wednesday, September 9th. The Goldman Sachs Group raised their price target on shares of Merck & Co., Inc. from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. Finally, Argus raised their price target on shares of Merck & Co., Inc. from $145.00 to $170.00 and gave the stock a "buy" rating in a research report on Tuesday, August 25th. Seventeen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Merck & Co., Inc. presently has an average rating of "Moderate Buy" and a consensus price target of $151.92.

Merck & Co., Inc. Stock Performance

MRK stock opened at $145.49 on Tuesday. The company has a current ratio of 1.32, a quick ratio of 1.10 and a debt-to-equity ratio of 1.22. The firm has a market cap of $358.94 billion, a P/E ratio of 116.39, a P/E/G ratio of 6.58 and a beta of 0.21. Merck & Co., Inc. has a 12-month low of $82.01 and a 12-month high of $156.92. The stock's 50 day simple moving average is $144.25 and its 200 day simple moving average is $128.57.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%. The company had revenue of $16.61 billion during the quarter, compared to analyst estimates of $16.37 billion. During the same quarter last year, the firm earned $2.13 EPS. The business's revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS.

Merck & Co., Inc. Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th were given a dividend of $0.85 per share. The ex-dividend date was Tuesday, September 15th. This represents a $3.40 dividend on an annualized basis and a yield of 2.3%. Merck & Co., Inc.'s payout ratio is currently 272.00%.

Insider Activity

In related news, EVP Richard Deluca sold 20,784 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $130.43, for a total transaction of $2,710,857.12. Following the completion of the transaction, the executive vice president directly owned 134,703 shares in the company, valued at $17,569,312.29. This represents a 13.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Chirfi Guindo sold 15,000 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $131.00, for a total value of $1,965,000.00. Following the completion of the sale, the executive vice president directly owned 46,613 shares in the company, valued at $6,106,303. This represents a 24.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 228,238 shares of company stock worth $29,977,783 over the last 90 days. Insiders own 0.17% of the company's stock.

Institutional Trading of Merck & Co., Inc.

Several hedge funds have recently bought and sold shares of MRK. BlackRock Inc. grew its position in shares of Merck & Co., Inc. by 0.5% in the 2nd quarter. BlackRock Inc. now owns 226,999,837 shares of the company's stock valued at $29,169,479,000 after purchasing an additional 1,073,507 shares during the period. State Street Corp increased its stake in Merck & Co., Inc. by 0.9% during the 2nd quarter. State Street Corp now owns 120,413,256 shares of the company's stock worth $15,573,754,000 after purchasing an additional 1,087,583 shares in the last quarter. Wellington Management Group LLP increased its stake in Merck & Co., Inc. by 2.3% during the 2nd quarter. Wellington Management Group LLP now owns 86,249,283 shares of the company's stock worth $11,083,033,000 after purchasing an additional 1,934,312 shares in the last quarter. Bank of America Corp DE raised its holdings in Merck & Co., Inc. by 10.5% during the 1st quarter. Bank of America Corp DE now owns 30,774,221 shares of the company's stock worth $3,701,831,000 after buying an additional 2,919,780 shares during the period. Finally, Invesco Ltd. raised its holdings in Merck & Co., Inc. by 3.5% during the 4th quarter. Invesco Ltd. now owns 20,546,185 shares of the company's stock worth $2,162,691,000 after buying an additional 701,249 shares during the period. 76.07% of the stock is currently owned by institutional investors.

Key Merck & Co., Inc. News

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

• Positive Sentiment: Merck announced that first-time pivotal Phase 3 results from three oncology trials will be presented at the ESMO 2026 congress, alongside more than 90 additional abstracts covering over 20 tumor types. The disclosures create a near-term pipeline catalyst and could reinforce confidence in Merck’s ability to replenish growth as investors assess its longer-term portfolio. Merck ESMO 2026 announcement
• Positive Sentiment: Positive Phase 3 results from Merck’s personalized mRNA cancer-vaccine program with Moderna, combined with reports of a potential U.S.-backed initiative to accelerate cancer-vaccine development, support investor interest in the company’s oncology and vaccine pipeline.
• Neutral Sentiment: Industry reports project continued growth in bioconjugation reagents, bioprocessing supplies, industrial bioprocessing, protein labeling and cell culture. Merck is listed among suppliers in these markets, but the reports do not identify a new contract or quantify a material revenue impact for MRK. Global cell culture market report
• Neutral Sentiment: Citigroup raised its price target to $145 while maintaining a neutral rating, and RBC lowered its target to $145 with a sector-perform rating. The actions suggest limited near-term valuation upside at current levels.
• Negative Sentiment: Jefferies cut its peak-sales forecast for remigromig by 60% after detailed diabetic macular edema results showed smaller numerical vision gains and raised safety concerns versus established treatment Lucentis. Although the trial met the statistical non-inferiority threshold, the reduced commercial outlook weighs on expectations for Merck’s ophthalmology pipeline. Jefferies remigromig forecast

About Merck & Co., Inc.

Merck & Co, Inc is a global healthcare company that develops and markets prescription medicines, vaccines, and animal-health products. The company serves patients, healthcare providers, and customers in markets around the world, with research and commercial operations spanning multiple geographic regions.

Its pharmaceutical portfolio includes oncology, infectious-disease, cardiovascular, immunology, and other therapeutic areas. Key products include Keytruda, an oncology treatment; Gardasil, a human papillomavirus (HPV) vaccine; Januvia and Janumet for type 2 diabetes; Bridion for anesthesia-related use; and Winrevair for pulmonary arterial hypertension.

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