Merck & Co Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
Did MRK Beat Earnings? Q1 2025 Results
Merck kicked off 2025 with a solid first-quarter beat, posting non-GAAP EPS of $2.22 against a consensus estimate of $2.13, a 3.98% beat, while revenue of $15.53 billion edged past the $15.33 billion estimate despite a 1.6% year-over-year decline. The headline story was a tale of two franchises: KEYTRUDA continued its steady expansion, growing 4% to $7.21 billion on broader uptake across earlier-stage cancer indications, while GARDASIL sales collapsed 41% to $1.33 billion as China demand cratered from $1.25 billion to just $193 million. WINREVAIR provided a meaningful counterweight, generating $280 million in its first full comparable quarter, and its Phase 3 ZENITH trial was halted early after showing a 76% reduction in a key composite endpoint. Merck maintained its full-year 2025 revenue outlook of $64.10 billion to $65.60 billion, though it trimmed non-GAAP EPS guidance to $8.82 to $8.97, reflecting a one-time charge tied to a new Hengrui Pharma licensing deal and roughly $200 million in anticipated tariff headwinds. Separately, Merck is investing $1 billion in a new Delaware biologics facility to support long-term KEYTRUDA manufacturing capacity.
- KEYTRUDA growth driven by increased global uptake in earlier-stage indications including triple-negative breast cancer, renal cell carcinoma, and non-small cell lung cancer
- WINREVAIR continued strong uptake since second-quarter 2024 U.S. launch
- GARDASIL/GARDASIL 9 declined 41% primarily due to lower demand in China
- Animal Health growth driven by higher demand for Livestock products and inclusion of Elanco aqua business acquired July 2024
- JANUVIA/JANUMET grew 19% due to higher net pricing in the U.S.
- WELIREG grew 62% driven by higher demand in the U.S.
- PREVYMIS grew 19% driven by higher demand in the U.S.
- Favorable product mix improved gross margins
- Foreign exchange had approximately 1% negative impact on sales
“Our company made strong progress to start the year, with increasing contributions from our newer commercialized medicines and vaccines and continued advancement of our pipeline.”
Merck CEO, on the earnings call
Forward Guidance & Outlook
Merck continues to expect full-year 2025 worldwide sales between $64.1 billion and $65.6 billion, including a revised negative foreign exchange impact of approximately 1%. Non-GAAP EPS guidance was narrowed to $8.82–$8.97, revised down from $8.88–$9.03 to reflect an anticipated one-time charge of approximately $0.06 per share related to the Hengrui Pharma license agreement expected to close in Q2 2025. The outlook also absorbs approximately $200 million in incremental tariff costs primarily impacting cost of sales. Non-GAAP gross margin is expected at approximately 82%, non-GAAP operating expenses between $25.6 billion and $26.6 billion, and the non-GAAP effective tax rate between 15.5% and 16.5%. Share count is expected at approximately 2.51 billion diluted shares.
MRK YoY Financials
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.