Merck & (MRK) Q1 2026 Earnings
How Did MRK Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +5.69%.
Did MRK Beat Earnings? Q1 2026 Results
Yes. Merck & reported Q1 2026 earnings of $-1.28 a share on Apr 30, 2026, beating the $-1.47 consensus estimate by 13.1%. Revenue was $16.3B against a $15.8B estimate.
Merck & Co. delivered a headline beat in Q1 2026 despite reporting a net loss, with the Rahway, N.J.-based drugmaker posting an adjusted loss of $1.28 per share against a consensus estimate of $-1.47, a 13.15% beat that extended its streak of topping EPS expectations to four consecutive quarters. Revenue climbed 4.9% year-over-year to $16.29 billion, clearing the $15.85 billion consensus by 2.77%, as oncology strength and Animal Health momentum carried the top line. The dominant story, however, was a $9.00 billion charge tied to the Cidara Therapeutics acquisition, which drove R&D expenses to $12.59 billion and swung both GAAP and non-GAAP results into loss territory. Offsetting that noise, KEYTRUDA franchise sales rose 12% to $8.03 billion and WINREVAIR surged 88% to $525 million on expanding indications. Looking ahead, Merck nudged its full-year 2026 sales guidance to $65.80 billion-$67.00 billion and raised its non-GAAP EPS range to $5.04-$5.16, signaling confidence in underlying operational performance even as further acquisition charges loom.
- KEYTRUDA/KEYTRUDA QLEX franchise sales grew 12% driven by higher global demand in metastatic and earlier-stage oncology indications
- WINREVAIR grew 88% on continued U.S. uptake and early international launches in Japan and Europe
- Animal Health grew 13% driven by both Livestock (higher ruminant/poultry demand and price) and Companion Animal (new product launches and pricing)
- GARDASIL/GARDASIL 9 declined 19% due to lower demand in China and Japan following national catch-up immunization program
- JANUVIA/JANUMET declined 28% due to generic competition across most markets
- PREVYMIS grew 31% on higher U.S. demand and new indication launches in European markets
- WELIREG grew 45% on higher U.S. demand and international launch uptake
- CAPVAXIVE grew 33% on European launch uptake and continued U.S. uptake
- BRAVECTO sales were $379 million vs $327 million prior year, up 16%
- Koselugo alliance revenue increased to $161 million from $44 million due to $150 million AstraZeneca collaboration amendment payment
“We are moving with speed to transform our portfolio to one with a diversified set of growth drivers across a broad set of therapeutic areas. During the first quarter, we continued to strengthen our pipeline with science-led business development, including our planned acquisition of Terns. We also achieved several important milestones, such as the FDA approval of IDVYNSO – which marks a new chapter in our longstanding commitment to people living with HIV. I am pleased with our progress and excited for what's ahead, as we enter a particularly robust period of Phase 3 data readouts and deliver on the promise of our pipeline for patients.”
Merck & CEO, on the earnings call
What Was Merck &'s Outlook in Q1 2026?
Merck narrowed and raised its full-year 2026 sales guidance to $65.8 billion–$67.0 billion (from $65.5 billion–$67.0 billion), including a positive FX impact of approximately 1%. Non-GAAP EPS guidance was raised to $5.04–$5.16 (from $5.00–$5.15), including a positive FX impact of approximately $0.10 per share and a $3.62 per share charge for the Cidara acquisition. Non-GAAP gross margin is expected at approximately 82%, non-GAAP operating expenses at $36.0 billion–$36.8 billion, and non-GAAP effective tax rate at 23.5%–24.5%. The outlook excludes the pending Terns Pharmaceuticals acquisition, which is expected to close in May and result in an additional one-time charge of approximately $5.8 billion (~$2.35 per share), plus approximately $0.12 in negative EPS impact over the remainder of 2026 from operational investment and financing costs.
MRK YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $16.3B | $15.5B | +4.9% |
| Gross Profit | $12.1B | $12.1B | −0.2% |
MRK Revenue by Segment
MRK Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.