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MRK's Q3 adjusted earnings of $2.49 per share and revenues of $18.09 billion topped estimates, lifting shares.
Keytruda sales rose 6% to $8.60 billion, while Winrevair, Welireg and Gardasil delivered strong growth.
MRK raised 2026 adjusted EPS guidance to $2.77-$2.82 from $2.66-$2.76 and expects sales to be $66.8-$67.3B.
Merck (MRK - Free Report) reported adjusted earnings of $2.49 per share for the third quarter of 2026, beating the Zacks Consensus Estimate of $2.12. Earnings declined 3% year over year on a reported basis and 5% excluding foreign exchange (Fx).
The year-over-year decline was due to a one-time charge of 12 cents per share related to the global license agreement with SciBrunch.
Revenues in the third quarter increased 5% year over year on a reported basis and 4% excluding Fx to $18.09 billion, driven by strong oncology sales and newer product launches. Sales comprehensively beat the Zacks Consensus Estimate of $17.23 billion.
All sales growth numbers discussed below are on a year-over-year basis and exclude Fx impact.
MRK's Keytruda Sales Beat Estimates
Combined Keytruda and Keytruda Qlex sales increased 6% to $8.60 billion. Keytruda Qlex, the subcutaneous formulation of Keytruda, contributed $830 million during the reported quarter.
Excluding the sales of Keytruda Qlex, Keytruda recorded sales of $7.77 billion in the third quarter, which beat the Zacks Consensus Estimate of $7.46 billion.
The growth was driven by strong global uptake across earlier-stage indications, including triple-negative breast, cervical, head and neck, and bladder cancers. Higher global demand in metastatic indications, including urothelial cancer, also supported sales.
MRK's Other Oncology Drugs Show Mixed Performance
Welireg sales surged 58% to $307 million, reflecting higher demand in the United States and continued launch uptake across international markets, mainly Japan.
Alliance revenues from Eisai-partnered Lenvima increased 11% to $287 million, driven by higher demand in the United States.
Meanwhile, Alliance revenues from AstraZeneca (AZN - Free Report) -partnered Lynparza declined 7% to $352 million.
MRK's Vaccines Sales Rebound
HPV vaccines — Gardasil and Gardasil 9 — generated sales of $1.99 billion, up 14%. The figure came in ahead of the Zacks Consensus Estimate of $1.81 billion.
Higher U.S. sales, reflecting favorable public-sector purchasing patterns and improved net pricing, supported Gardasil sales growth.
Combined sales of ProQuad, M-M-R II and Varivax increased 7% to $730 million, mainly due to higher demand in certain European markets.
Merck's Newer Products Add Momentum
Winrevair sales jumped 94% to $694 million, reflecting higher U.S. demand, favorable wholesaler and specialty pharmacy purchasing patterns, and continued launch uptake across Europe and Japan.
Ohtuvayre, added through the October 2025 acquisition of Verona Pharma, contributed $184 million during the third quarter, compared with $204 million recorded in the previous quarter.
Capvaxive sales increased 7% to $263 million, driven by launch uptake in international markets, particularly in Asia Pacific and Europe. Sales of the new RSV antibody, Enflonsia, surged 136% to $187 million, supported by seasonal demand and associated inventory buildup.
Merck's Established Drugs Post Mixed Results
In Diabetes, the Januvia/Janumet franchise recorded sales of $380 million, which declined 39%. The decrease reflected lower demand due to generic competition following the loss of market exclusivity in the United States.
Bridion sales plunged 67% to $144 million, primarily due to lower demand in the United States, owing to generic competition. However, Prevymis sales increased 31% to $347 million, driven by higher global demand.
MRK's Animal Health Sales Rise
Animal Health segment revenues increased 3% to $1.68 billion, supported by growth across the Livestock and Companion Animal portfolios. The figure, however, missed the Zacks Consensus Estimate of $1.72 billion.
Livestock sales increased 2% to $1.05 billion, primarily driven by higher poultry product demand. Companion Animal sales rose 6% to $628 million, supported by new product launches.
MRK's Operating Expenses
Adjusted selling, general and administrative expenses increased 10% to $2.86 billion, reflecting higher administrative costs and increased promotional spending to support product launches.
Adjusted research and development expenses rose 13% to $4.53 billion. The increase primarily reflected a $400 million charge associated with the SciBrunch licensing agreement and higher clinical development spending.
MRK Updates 2026 Outlook
Merck raised the lower end of its 2026 sales guidance to $66.8-$67.3 billion from $66.3-$67.3 billion. The outlook includes an expected positive Fx impact of approximately 1%.
The company also raised its adjusted earnings guidance to $2.77-$2.82 per share from $2.66-$2.76. The guidance was raised despite including a one-time charge of 12 cents per share related to the SciBrunch licensing agreement recorded in the third quarter.
Adjusted operating expenses are now expected to be between $42.4 billion and $42.9 billion, compared with the previous projection of $42.0 billion and $42.7 billion.
The adjusted effective tax rate guidance was lowered to 32-33% from 35-36%.
Our Take on MRK’s Results
Merck delivered better-than-expected third-quarter results, with both adjusted earnings and revenues surpassing estimates. Keytruda remained the company’s principal revenue driver, while Winrevair, Welireg, Enflonsia, Capvaxive and Ohtuvayre broadened its growth base. Animal Health also maintained steady momentum. Gardasil sales rebounded strongly, beating expectations. However, continued erosion in the Januvia/Janumet and Bridion franchises due to generic competition remained a headwind.
The narrowed and raised 2026 outlook for sales and earnings, respectively, reflects continued commercial momentum across oncology, cardiometabolic and respiratory products. Shares of Merck rose in premarket trading today following the results, likely reflecting investor optimism over the increased EPS guidance.
Year to date, shares of Merck have risen 36.7% compared with the industry’s 20.3% growth.
Image Source: Zacks Investment Research
Recent pipeline progress has also been encouraging. The FDA accepted Merck’s application for sacituzumab tirumotecan (sac-TMT) for certain patients with previously treated endometrial cancer under priority review. A decision from the regulatory body is due on June 15, 2027.
The company also reported positive phase III results for its personalized cancer therapy, intismeran autogene, in combination with Keytruda for treating certain patients with melanoma. The therapy is being developed in collaboration with Moderna (MRNA - Free Report) . The combo therapy recently met both primary and secondary endpoints in a phase III study in certain patients with high-risk melanoma.
Merck & Co., Inc. Price, Consensus and EPS Surprise
View the Zacks #1 Rank List
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MRK Q3 Earnings & Sales Beat Estimates, '26 EPS View Raised, Stock Up
Key Takeaways
Merck (MRK - Free Report) reported adjusted earnings of $2.49 per share for the third quarter of 2026, beating the Zacks Consensus Estimate of $2.12. Earnings declined 3% year over year on a reported basis and 5% excluding foreign exchange (Fx).
The year-over-year decline was due to a one-time charge of 12 cents per share related to the global license agreement with SciBrunch.
Revenues in the third quarter increased 5% year over year on a reported basis and 4% excluding Fx to $18.09 billion, driven by strong oncology sales and newer product launches. Sales comprehensively beat the Zacks Consensus Estimate of $17.23 billion.
All sales growth numbers discussed below are on a year-over-year basis and exclude Fx impact.
MRK's Keytruda Sales Beat Estimates
Combined Keytruda and Keytruda Qlex sales increased 6% to $8.60 billion. Keytruda Qlex, the subcutaneous formulation of Keytruda, contributed $830 million during the reported quarter.
Excluding the sales of Keytruda Qlex, Keytruda recorded sales of $7.77 billion in the third quarter, which beat the Zacks Consensus Estimate of $7.46 billion.
The growth was driven by strong global uptake across earlier-stage indications, including triple-negative breast, cervical, head and neck, and bladder cancers. Higher global demand in metastatic indications, including urothelial cancer, also supported sales.
MRK's Other Oncology Drugs Show Mixed Performance
Welireg sales surged 58% to $307 million, reflecting higher demand in the United States and continued launch uptake across international markets, mainly Japan.
Alliance revenues from Eisai-partnered Lenvima increased 11% to $287 million, driven by higher demand in the United States.
Meanwhile, Alliance revenues from AstraZeneca (AZN - Free Report) -partnered Lynparza declined 7% to $352 million.
MRK's Vaccines Sales Rebound
HPV vaccines — Gardasil and Gardasil 9 — generated sales of $1.99 billion, up 14%. The figure came in ahead of the Zacks Consensus Estimate of $1.81 billion.
Higher U.S. sales, reflecting favorable public-sector purchasing patterns and improved net pricing, supported Gardasil sales growth.
Combined sales of ProQuad, M-M-R II and Varivax increased 7% to $730 million, mainly due to higher demand in certain European markets.
Merck's Newer Products Add Momentum
Winrevair sales jumped 94% to $694 million, reflecting higher U.S. demand, favorable wholesaler and specialty pharmacy purchasing patterns, and continued launch uptake across Europe and Japan.
Ohtuvayre, added through the October 2025 acquisition of Verona Pharma, contributed $184 million during the third quarter, compared with $204 million recorded in the previous quarter.
Capvaxive sales increased 7% to $263 million, driven by launch uptake in international markets, particularly in Asia Pacific and Europe. Sales of the new RSV antibody, Enflonsia, surged 136% to $187 million, supported by seasonal demand and associated inventory buildup.
Merck's Established Drugs Post Mixed Results
In Diabetes, the Januvia/Janumet franchise recorded sales of $380 million, which declined 39%. The decrease reflected lower demand due to generic competition following the loss of market exclusivity in the United States.
Bridion sales plunged 67% to $144 million, primarily due to lower demand in the United States, owing to generic competition. However, Prevymis sales increased 31% to $347 million, driven by higher global demand.
MRK's Animal Health Sales Rise
Animal Health segment revenues increased 3% to $1.68 billion, supported by growth across the Livestock and Companion Animal portfolios. The figure, however, missed the Zacks Consensus Estimate of $1.72 billion.
Livestock sales increased 2% to $1.05 billion, primarily driven by higher poultry product demand. Companion Animal sales rose 6% to $628 million, supported by new product launches.
MRK's Operating Expenses
Adjusted selling, general and administrative expenses increased 10% to $2.86 billion, reflecting higher administrative costs and increased promotional spending to support product launches.
Adjusted research and development expenses rose 13% to $4.53 billion. The increase primarily reflected a $400 million charge associated with the SciBrunch licensing agreement and higher clinical development spending.
MRK Updates 2026 Outlook
Merck raised the lower end of its 2026 sales guidance to $66.8-$67.3 billion from $66.3-$67.3 billion. The outlook includes an expected positive Fx impact of approximately 1%.
The company also raised its adjusted earnings guidance to $2.77-$2.82 per share from $2.66-$2.76. The guidance was raised despite including a one-time charge of 12 cents per share related to the SciBrunch licensing agreement recorded in the third quarter.
Adjusted operating expenses are now expected to be between $42.4 billion and $42.9 billion, compared with the previous projection of $42.0 billion and $42.7 billion.
The adjusted effective tax rate guidance was lowered to 32-33% from 35-36%.
Our Take on MRK’s Results
Merck delivered better-than-expected third-quarter results, with both adjusted earnings and revenues surpassing estimates. Keytruda remained the company’s principal revenue driver, while Winrevair, Welireg, Enflonsia, Capvaxive and Ohtuvayre broadened its growth base. Animal Health also maintained steady momentum. Gardasil sales rebounded strongly, beating expectations. However, continued erosion in the Januvia/Janumet and Bridion franchises due to generic competition remained a headwind.
The narrowed and raised 2026 outlook for sales and earnings, respectively, reflects continued commercial momentum across oncology, cardiometabolic and respiratory products. Shares of Merck rose in premarket trading today following the results, likely reflecting investor optimism over the increased EPS guidance.
Year to date, shares of Merck have risen 36.7% compared with the industry’s 20.3% growth.
Image Source: Zacks Investment Research
Recent pipeline progress has also been encouraging. The FDA accepted Merck’s application for sacituzumab tirumotecan (sac-TMT) for certain patients with previously treated endometrial cancer under priority review. A decision from the regulatory body is due on June 15, 2027.
The company also reported positive phase III results for its personalized cancer therapy, intismeran autogene, in combination with Keytruda for treating certain patients with melanoma. The therapy is being developed in collaboration with Moderna (MRNA - Free Report) . The combo therapy recently met both primary and secondary endpoints in a phase III study in certain patients with high-risk melanoma.
Merck & Co., Inc. Price, Consensus and EPS Surprise
Merck & Co., Inc. price-consensus-eps-surprise-chart | Merck & Co., Inc. Quote
MRK’s Zacks Rank
Merck currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.