Merck & Co., Inc. (NYSE:MRK) Updates FY 2026 Earnings Guidance

Key Points

• Merck cut FY 2026 EPS guidance to $2.66–$2.76, well below the $3.42 analyst consensus, largely due to charges linked to its Terns Pharmaceuticals acquisition.
• FY 2026 revenue guidance was set at $66.3 billion–$67.3 billion, broadly in line with the $66.7 billion consensus, supported by Keytruda and newer products.
• Second-quarter results beat expectations: revenue rose 5.1% year over year to $16.61 billion, while the $0.13 per-share loss was narrower than the expected $0.26 loss. Merck also declared a quarterly dividend of $0.85 per share.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 2.660-2.760 for the period, compared to the consensus estimate of 3.420. The company issued revenue guidance of $66.3 billion-$67.3 billion, compared to the consensus revenue estimate of $66.7 billion.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on MRK shares. Citigroup assumed coverage on Merck & Co., Inc. in a report on Wednesday, May 6th. They set a "neutral" rating and a $125.00 price target on the stock. UBS Group upped their price objective on shares of Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Barclays increased their target price on shares of Merck & Co., Inc. from $140.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. CICC Research started coverage on shares of Merck & Co., Inc. in a research note on Wednesday, June 24th. They set an "outperform" rating and a $138.00 target price on the stock. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $120.00 price target on shares of Merck & Co., Inc. in a research report on Monday, July 6th. Thirteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, Merck & Co., Inc. has a consensus rating of "Moderate Buy" and a consensus target price of $134.50.

Merck & Co., Inc. Price Performance

Shares of MRK stock traded up $0.83 during mid-day trading on Tuesday, hitting $128.60. 1,718,073 shares of the stock traded hands, compared to its average volume of 10,744,324. Merck & Co., Inc. has a twelve month low of $77.58 and a twelve month high of $135.05. 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 company's 50-day simple moving average is $123.28 and its 200-day simple moving average is $118.66. The firm has a market cap of $317.63 billion, a price-to-earnings ratio of 36.31, a price-to-earnings-growth ratio of 5.17 and a beta of 0.19.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The business had revenue of $16.61 billion during the quarter, compared to analyst estimates of $16.37 billion. During the same quarter in the prior year, the firm posted $2.13 earnings per share. The company'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. As a group, equities research analysts expect that Merck & Co., Inc. will post 2.74 earnings per share for the current year.

Merck & Co., Inc. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Tuesday, September 15th will be issued a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Merck & Co., Inc.'s dividend payout ratio is presently 95.77%.

More Merck & Co., Inc. News

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

• Positive Sentiment: Merck reported second-quarter revenue of $16.61 billion, above the $16.37 billion consensus estimate, while its loss of $0.13 per share was narrower than the expected $0.26 loss. Revenue increased 5.1% year over year. Merck Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Keytruda remained the primary growth engine. Sales of its new injectable formulation reportedly exceeded Wall Street expectations by more than $200 million, reinforcing Merck’s oncology momentum. The Merck Product That Absolutely Demolished Wall Street's Forecasts
• Positive Sentiment: The company raised its full-year 2026 revenue outlook to $66.3 billion-$67.3 billion, broadly consistent with the $66.7 billion analyst consensus, supported by newer products and Keytruda demand. Merck posts better-than-expected second-quarter results on Keytruda strength
• Neutral Sentiment: Merck also highlighted regulatory and clinical milestones across its pipeline, including updates to its HIV program. These developments could support longer-term growth but do not materially change near-term earnings expectations. Merck Second-Quarter 2026 Financial Results
• Negative Sentiment: Merck cut its FY 2026 EPS guidance to $2.66-$2.76, well below the $3.42 consensus estimate. The reduction reflects charges associated with the acquisition of cancer biotech Terns Pharmaceuticals, putting pressure on near-term profitability despite the revenue outlook. Merck cuts profit guidance due to deal charges

Institutional Trading of Merck & Co., Inc.

A number of hedge funds and other institutional investors have recently made changes to their positions in MRK. Prosperity Bancshares Inc bought a new stake in Merck & Co., Inc. during the fourth quarter worth approximately $26,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $31,000. Safe Harbor Fiduciary LLC acquired a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $32,000. Gilpin Wealth Management LLC bought a new stake in shares of Merck & Co., Inc. during the 4th quarter worth $32,000. Finally, Wealth Watch Advisors INC bought a new stake in shares of Merck & Co., Inc. during the 3rd quarter worth $34,000. 76.07% of the stock is currently owned by institutional investors.

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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