FY2026 EPS Estimate for Merck & Co., Inc. Lowered by Analyst

Key Points

• Erste Group Bank lowered Merck’s FY2026 EPS estimate to $2.63 from $2.73, below the $2.66 consensus forecast. The firm expects FY2027 EPS of $9.38, while Merck’s FY2026 guidance remains $2.66–$2.76.
• Merck’s latest quarterly results beat expectations, with EPS of a $0.13 loss versus the expected $0.26 loss and revenue of $16.61 billion against a $16.37 billion estimate. Revenue increased 5.1% year over year.
• The stock opened at $147.40 and carries a “Moderate Buy” consensus rating with a $151.92 target price. Merck also pays a quarterly dividend of $0.85, or $3.40 annualized, yielding approximately 2.3%.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Analysts at Erste Group Bank cut their FY2026 earnings per share (EPS) estimates for shares of Merck & Co., Inc. in a research note issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the company will post earnings of $2.63 per share for the year, down from their prior forecast of $2.73. 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 $9.38 EPS.

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

Several other analysts have also recently commented on MRK. Wolfe Research raised their price target on Merck & Co., Inc. from $155.00 to $180.00 and gave the company an "outperform" rating in a report on Tuesday, August 25th. Royal Bank Of Canada dropped their price objective on Merck & Co., Inc. from $150.00 to $145.00 and set a "sector perform" rating on the stock in a report on Monday, October 12th. Scotiabank increased their price objective on Merck & Co., Inc. from $155.00 to $180.00 and gave the stock a "sector outperform" rating in a research report on Tuesday, September 29th. Wall Street Zen downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating in a report on Saturday, October 3rd. Finally, Berenberg Bank boosted their target price on shares of Merck & Co., Inc. from $127.00 to $137.00 and gave the stock a "hold" rating in a research report on Friday, September 11th. Seventeen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $151.92.

Merck & Co., Inc. Stock Down 1.7%

MRK stock opened at $147.40 on Friday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32. The company has a fifty day moving average of $146.79 and a 200-day moving average of $130.07. Merck & Co., Inc. has a one year low of $82.01 and a one year high of $156.92. The stock has a market capitalization of $363.67 billion, a PE ratio of 117.92, a price-to-earnings-growth ratio of 6.92 and a beta of 0.21.

Merck & Co., Inc. Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th were paid a $0.85 dividend. This represents a $3.40 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 15th. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 272.00%.

Insider Transactions at Merck & Co., Inc.

In other Merck & Co., Inc. news, EVP David R. Maraldo sold 18,706 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the sale, the executive vice president directly owned 18,212 shares in the company, valued at approximately $2,344,248.64. The trade was a 50.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Jennifer Zachary sold 80,315 shares of Merck & Co., Inc. stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $133.46, for a total value of $10,718,839.90. Following the transaction, the executive vice president directly owned 45,509 shares of the company's stock, valued at $6,073,631.14. This trade represents a 63.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 228,238 shares of company stock worth $29,977,783 over the last ninety days. 0.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Merck & Co., Inc.

Large investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its stake in shares of Merck & Co., Inc. by 23.8% during the first quarter. Dimensional Fund Advisors LP now owns 15,456,039 shares of the company's stock valued at $1,858,938,000 after acquiring an additional 2,969,856 shares during the last quarter. Bank of America Corp DE raised its stake in Merck & Co., Inc. by 10.5% in the 1st quarter. Bank of America Corp DE now owns 30,774,221 shares of the company's stock valued at $3,701,831,000 after purchasing an additional 2,919,780 shares during the last quarter. Diamant Asset Management Inc. lifted its holdings in Merck & Co., Inc. by 12,130.3% in the 1st quarter. Diamant Asset Management Inc. now owns 2,068,387 shares of the company's stock valued at $248,806,000 after purchasing an additional 2,051,475 shares in the last quarter. Assenagon Asset Management S.A. lifted its stake in shares of Merck & Co., Inc. by 263.7% during the second quarter. Assenagon Asset Management S.A. now owns 2,702,992 shares of the company's stock valued at $347,334,000 after buying an additional 1,959,778 shares during the period. Finally, Wellington Management Group LLP boosted its position in Merck & Co., Inc. by 2.3% during the second quarter. Wellington Management Group LLP now owns 86,249,283 shares of the company's stock worth $11,083,033,000 after acquiring an additional 1,934,312 shares during the last quarter. 76.07% of the stock is owned by institutional investors and hedge funds.

Key Merck & Co., Inc. News

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

• Positive Sentiment: The European Commission approved KEYTRUDA plus Padcev as perioperative treatment for adults with resectable muscle-invasive bladder cancer. The label applies regardless of cisplatin eligibility, broadening the addressable patient population and supporting future KEYTRUDA revenue. This is also the EU’s first approval of a PD-1 inhibitor combined with an antibody-drug conjugate in this setting. European Commission Approves KEYTRUDA Plus Padcev
• Positive Sentiment: Merck and Moderna reported that the Phase 3 INTerpath-001 trial of personalized cancer vaccine intismeran plus KEYTRUDA produced positive recurrence-free and distant metastasis-free survival results in melanoma. The combination reduced the risk of recurrence or death by 42%, strengthening the long-term potential of Merck’s oncology pipeline. Moderna and Merck Cancer Vaccine Results
• Neutral Sentiment: Trading in Merck call options was unusually active, with investors purchasing approximately 37,444 contracts—about 40% above average volume. This may indicate speculative bullish interest, but options activity does not necessarily signal a change in fundamentals.
• Negative Sentiment: Despite the strong melanoma results, the data appeared to leak ahead of the formal presentation, prompting a sell-the-news reaction. Investors may have already priced in favorable results, while the initial reports raised questions about how compelling the efficacy profile was relative to expectations. Merck declined alongside Moderna, although Moderna experienced the sharper reaction. Moderna Shares Plunge on Cancer Vaccine Data Leak
• Negative Sentiment: Analysts expect Merck’s third-quarter earnings to decline, creating an additional overhang ahead of the company’s report. With a high reported price-to-earnings ratio, the stock may be particularly sensitive to disappointing earnings or guidance. Merck Q3 Earnings Preview

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global healthcare company that develops, manufactures and markets prescription medicines, vaccines and animal-health products. Its pharmaceutical business focuses on oncology, infectious diseases, cardiology, immunology and other areas of significant medical need. The company serves patients, healthcare providers and institutions in markets worldwide.

Merck's principal products include Keytruda, an immunotherapy used to treat a range of cancers; Gardasil and Gardasil 9, vaccines that help protect against human papillomavirus; and Januvia and Janumet, medicines used to manage type 2 diabetes.

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