Merck & Co Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did MRK Beat Earnings? Q3 2025 Results
Merck posted a convincing third-quarter beat, with non-GAAP EPS of $2.58 coming in 9.85% above the $2.35 consensus estimate and revenue of $17.28 billion edging past expectations by 1.76% on 3.7% year-over-year growth. The primary engine behind the quarter was KEYTRUDA, which generated $8.14 billion in sales, up 10%, as demand broadened across both metastatic and earlier-stage cancer indications, while WINREVAIR's 141% surge to $360 million underscored the strength of Merck's cardio-pulmonary buildout. A significant regulatory milestone, the FDA approval of KEYTRUDA's subcutaneous formulation as the first deliverable in as little as one minute, added strategic momentum and drew a notable positive market reaction. GARDASIL remained a drag, sliding 24% to $1.75 billion largely due to China demand falling to zero. Looking ahead, Merck raised and narrowed its full-year 2025 non-GAAP EPS guidance to $8.93 to $8.98 and tightened its revenue outlook to $64.50 billion to $65.00 billion, reflecting operational improvements and a more favorable estimated tax rate.
- KEYTRUDA growth of 10% driven by strong global demand across metastatic indications and robust uptake in earlier-stage indications
- WINREVAIR sales growth of 141% reflecting continued U.S. uptake for PAH
- CAPVAXIVE sales of $244 million representing continued uptake since Q3 2024 U.S. launch
- Animal Health growth of 9% driven by livestock product performance with 16% growth
- GARDASIL/GARDASIL 9 decline of 24% primarily due to lower demand in China
- Non-GAAP gross margin expansion to 81.9% from 80.5% driven by favorable product mix
- U.S. pharmaceutical sales grew 15% year-over-year
- JANUVIA/JANUMET grew 29% driven by higher net pricing in the U.S.
- WELIREG grew 42% driven by higher demand in U.S. and launch uptake in European markets
“In the third quarter, we continued to execute on our strategy with important pipeline advancements, significant approvals and successful new product launches.”
Merck CEO, on the earnings call
Forward Guidance & Outlook
Merck raised and narrowed its full-year 2025 financial outlook. The company now expects worldwide sales of $64.5 billion to $65.0 billion (up from prior range of $64.3 billion to $65.3 billion), including a negative impact of foreign exchange of approximately 0.5%. Non-GAAP EPS is now expected to be between $8.93 and $8.98 (raised from prior $8.87 to $8.97), including a negative impact of foreign exchange of approximately $0.15 per share. The revised outlook reflects a benefit from an amended AstraZeneca collaboration agreement related to Koselugo (~$0.09/share), operational improvements including a more favorable estimated tax rate (14.0%-15.0%, down from 15.0%-16.0%) and lower tariff-related costs, partially offset by an estimated negative impact from the Verona Pharma acquisition (~$0.04/share) and incremental FX headwinds. Non-GAAP gross margin is expected to be approximately 82%, and non-GAAP operating expenses are expected to be $25.9 billion to $26.4 billion.
MRK YoY Financials
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.