Merck (MRK) Q2 2026 Earnings
Includes a charge of $2.31 per share for the acquisition of Terns Pharmaceuticals, for which no tax benefit was recorded.
How Did MRK Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +0.24%.
Did MRK Beat Earnings? Q2 2026 Results
Yes. Merck reported Q2 2026 earnings of $-0.13 a share on Aug 4, 2026, beating the $-0.26 consensus estimate by 49.5%. Revenue was $16.6B against a $16.4B estimate.
Merck delivered a stronger-than-expected second quarter despite a headline loss, with adjusted EPS of $-0.13 beating the $-0.2576 consensus by 49.53%, extending the company's streak of beating EPS estimates to five consecutive quarters. The loss itself was driven by a $2.31 per share charge tied to Merck's acquisition of Terns Pharmaceuticals, an $5.70 billion one-time R&D outlay that weighed heavily on both reported and adjusted results, though the underlying business held up well. Revenue rose 5.1% year-over-year to $16.61 billion, edging past the $16.37 billion consensus estimate, led by the combined KEYTRUDA and KEYTRUDA QLEX franchise generating $8.37 billion in sales and WINREVAIR surging 75% to $588 million on robust U.S. and early international demand. Collaboration with Gilead on the once-weekly oral HIV regimen islatravir/lenacapavir also yielded positive Phase 3 data, adding pipeline momentum. Looking ahead, Merck raised its full-year 2026 sales outlook to $66.30 billion to $67.30 billion, reflecting confidence in its commercial trajectory despite cumulative acquisition-related charges continuing to pressure near-term earnings.
- Strong global KEYTRUDA uptake in earlier-stage oncology indications including TNBC, cervical, head and neck, and bladder cancer
- Initial commercial ramp of KEYTRUDA QLEX subcutaneous formulation contributing $463 million
- Continued WINREVAIR uptake in the U.S. and early international launches in Japan and Europe
- Animal Health growth driven by both Livestock and Companion Animal portfolios, including BRAVECTO
- PREVYMIS growth from new indication launches
- WELIREG growth from higher U.S. demand and international launch uptake
- OHTUVAYRE contributing $204 million from Verona Pharma acquisition
“We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches. The FDA approval of LIPFENDRA is an exciting moment for our company and for patients, marking the latest milestone in our nearly 70-year legacy in cardiovascular disease. Together with key regulatory and clinical advances across oncology, HIV and immunology, this achievement reflects the strength of our pipeline and portfolio transformation as we bring forward the next wave of innovation. I am confident in the ongoing execution of our strategy as we deliver for patients and further enhance our long-term growth trajectory.”
Merck CEO, on the earnings call
What Is Merck's Outlook?
Merck raised and narrowed its full-year 2026 sales outlook to $66.3 billion to $67.3 billion (from prior $65.8 billion to $67.0 billion), including approximately 1% positive FX impact. Non-GAAP EPS is expected between $2.66 and $2.76, including one-time charges of $3.62 per share for the Cidara acquisition and $2.31 per share for the Terns acquisition, plus approximately $0.12 per share for Terns financing and MK-4208 advancement costs. Non-GAAP gross margin is expected at approximately 81%. Non-GAAP operating expenses are expected between $42.0 billion and $42.7 billion (including $9.0 billion Cidara and $5.7 billion Terns one-time R&D charges). Non-GAAP effective tax rate is expected between 35.0% and 36.0%, reflecting non-deductible acquisition charges. Share count is expected at approximately 2.48 billion.
MRK YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $16.6B | $15.8B | +5.1% |
| Gross Profit | $12.2B | $12.2B | −0.3% |
MRK Revenue by Segment
MRK Revenue by Geography
When Does Merck Report Next?
Figures from SEC filings and company reports. Not investment advice.