Merck & (MRK) Q3 2026 Earnings
GAAP and non-GAAP EPS include a one-time charge of $0.12 per share ($400 million R&D charge) related to a global license agreement with SciBrunch. Prior-year Q3 included a $0.10 per share charge for a milestone payment to LaNova.
How Did MRK Stock React to Q3 2026 Earnings?
Did MRK Beat Earnings? Q3 2026 Results
Yes. Merck & reported Q3 2026 earnings of $2.49 a share on Oct 29, 2026, beating the $2.09 consensus estimate by 18.9%. Revenue was $18.1B against a $17.3B estimate.
Merck & Co. delivered a strong third quarter of 2026, posting adjusted EPS of $2.49 against a consensus estimate of $2.09, a beat of 18.87% that extended the drugmaker's streak of topping Wall Street EPS expectations to six consecutive quarters. Revenue climbed 4.7% year over year to $18.09 billion, clearing the $17.35 billion consensus by 4.25%, as KEYTRUDA and its subcutaneous sibling KEYTRUDA QLEX combined for $8.60 billion in franchise sales, with earlier-stage cancer indications underpinning growth even as intravenous volumes softened. WINREVAIR nearly doubled on U.S. demand and fresh European and Japanese launches, though steep declines in BRIDION and JANUVIA following U.S. patent expirations, along with a one-time $0.12 per share charge tied to a global license with SciBrunch for a preclinical KRAS inhibitor, tempered the picture. With the headline numbers absorbed, Merck narrowed its full-year 2026 sales guidance to $66.80 billion to $67.30 billion and raised its non-GAAP EPS range to $2.77 to $2.82, aided by a lower expected tax rate of 32% to 33%.
- KEYTRUDA growth from earlier-stage indications (TNBC, cervical, head and neck, bladder) and metastatic demand
- WINREVAIR growth from U.S. demand, favorable purchasing patterns and launches in Europe and Japan
- GARDASIL growth from favorable U.S. public-sector purchasing and higher net pricing
- Pharmaceutical growth benefited from approximately $550 million of purchase timing
- ENFLONSIA seasonal demand and inventory build
- Inclusion of OHTUVAYRE from Verona Pharma acquisition
- Animal Health growth from poultry products and new companion animal launches
- BRIDION and JANUVIA/JANUMET declines from U.S. generic competition
- Lower Koselugo alliance revenue after 2025 AstraZeneca agreement amendment
- Higher amortization, restructuring, production costs and net interest expense weighed on margins and EPS
“Our science-led strategy is transforming our business.”
Merck & CEO, on the earnings call
What Is Merck &'s Outlook?
Merck narrowed its full-year 2026 sales guidance to $66.8 billion–$67.3 billion (prior $66.3 billion–$67.3 billion), including an approximately 1% positive FX impact at mid-October 2026 rates. It raised its non-GAAP EPS range to $2.77–$2.82 (prior $2.66–$2.76), including an approximately $0.15 per share FX benefit. The EPS range includes one-time charges of $3.62 per share for Cidara, $2.31 per share for Terns and $0.12 per share for SciBrunch. The SciBrunch charge was not previously included in the outlook. Other updated guidance items: - Non-GAAP gross margin of approximately 81% - Non-GAAP operating expenses of $42.4 billion–$42.9 billion (prior $42.0 billion–$42.7 billion) - Non-GAAP other expense of approximately $1.4 billion - Non-GAAP tax rate of 32.0%–33.0% (prior 35.0%–36.0%) - Diluted share count of approximately 2.48 billion The outlook assumes no additional significant business development.
MRK YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $18.1B | $17.3B | +4.7% |
| Net Income | $5.1B | $5.8B | −12.5% |
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.