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.