Merck & Co Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.49%.
Did MRK Beat Earnings? Q4 2025 Results
Merck closed out Q4 2025 with a clean beat on both top and bottom lines, <a href="https://247wallst.com/investing/2026/02/02/merck-reports-earnings-tuesday-morning-after-gaining-13-over-the-past-year/">extending its recent momentum</a> as non-GAAP EPS of $2.04 edged past the $2.01 consensus by 1.47% and revenue of $16.40 billion topped estimates by 1.43%, growing 5.0% year-over-year. The primary engine remained KEYTRUDA, which posted $8.37 billion in Q4 sales, up 7%, on continued expansion into earlier-stage indications including triple-negative breast cancer, non-small cell lung cancer, and renal cell carcinoma. Newer launches added meaningful lift, with pulmonary arterial hypertension treatment WINREVAIR surging 133% to $467 million and CAPVAXIVE contributing $279 million, partially offsetting a persistent 34% decline in GARDASIL from weakened China demand. Non-GAAP EPS rose 19% year-over-year, aided by lower business development charges and operational efficiencies. Looking ahead, Merck guided FY2026 sales of $65.50 billion to $67.00 billion, though non-GAAP EPS of $5.00 to $5.15 reflects a roughly $3.65 per-share charge tied to the approximately $9.20 billion Cidara Therapeutics acquisition.
- Strong global uptake of KEYTRUDA in earlier-stage indications including TNBC, NSCLC, renal cell carcinoma, cervical and head and neck cancers
- WINREVAIR continued uptake in U.S. and early international launch (133% Q4 growth)
- Animal Health growth driven by Livestock products across all species and new Companion Animal launches
- CAPVAXIVE ongoing U.S. uptake
- Higher net pricing of JANUVIA in the U.S.
- Benefits from multiyear optimization initiative reducing operating expenses
- Lower charges for business development transactions compared to prior year
“In 2025, we continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients around the world. Our business benefited from demand for our innovative portfolio, including for KEYTRUDA, increasing contributions from new launches in cardiometabolic and respiratory as well as vaccines, and strong performance of Animal Health. The transformation of our portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as we continue to execute on our strategy. Our progress positions us to continue delivering on our purpose for patients and creating durable value for shareholders.”
Merck CEO, on the earnings call
Forward Guidance & Outlook
Merck anticipates full-year 2026 worldwide sales between $65.5 billion and $67.0 billion, including a positive impact from foreign exchange of approximately 1%. Non-GAAP EPS is expected between $5.00 and $5.15, including a positive FX impact of approximately $0.10 per share. The outlook includes a one-time charge of approximately $9.0 billion (~$3.65 per share) plus approximately $0.30 per share of related financing and operational costs for the Cidara acquisition. Non-GAAP gross margin is expected at approximately 82%. Non-GAAP operating expenses are anticipated at $35.9 billion to $36.9 billion. Non-GAAP other (income) expense, net is expected to be approximately $1.3 billion of expense. The non-GAAP effective tax rate is expected between 23.5% and 24.5%, elevated by the non-tax deductible Cidara charge. Share count is expected at approximately 2.48 billion.
MRK YoY Financials
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.