Merck & (MRK) Q1 2025 Earnings
How Did MRK Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +8.13%.
Did MRK Beat Earnings? Q1 2025 Results
Yes. Merck & reported Q1 2025 earnings of $2.22 a share on Apr 24, 2025, beating the $2.14 consensus estimate by 4.0%. Revenue was $15.5B against a $15.3B estimate.
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
What Was Merck &'s Outlook in Q1 2025?
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
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $15.5B | $15.8B | −1.6% |
| Gross Profit | $12.1B | $12.2B | −1.0% |
| Operating Income | $5.9B | $5.8B | +2.5% |
| Net Income | $5.1B | $4.8B | +6.7% |
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.