Merck & Stock Earnings Reports

Merck reported Q1 2026 revenue of $16.3 billion, up 5% year-over-year (3% ex-FX), driven by oncology (KEYTRUDA family), Animal Health, and new product launches. GAAP results showed a loss due to a large one-time, non-tax-deductible $9 billion charge related to the acquisition of Cidara; adjusted non-GAAP results and guidance were provided. Management reiterated confidence in 2026 and narrowed/raised the midpoint of full-year non-GAAP guidance: revenue $65.8–$67.0 billion and EPS $5.04–$5.16. KEYTRUDA sales were $8.0 billion (+8%), with ongoing uptake across metastatic and earlier-stage indications; KEYTRUDA QLEX early sales were $128 million and a permanent J-code was granted. FDA approvals and regulatory milestones included approval of IDVYNSO for virologically suppressed HIV-1 patients and priority review for I-DXd (with Daiichi Sankyo) in extensive-stage small cell lung cancer. Progress across the pipeline: Phase IIb/III starts for MK-8748 (TIE-2/VEGF) in nAMD, multiple positive Phase III readouts across areas (cardiometabolic, WINREVAIR in PAH signals, enlicitide oral PCSK9 Phase III data), and continued advancement of WELIREG and sacituzumab (sac-TMT) programs. Merck is reorganizing its commercial structure into therapeutic-area business units and is investing in AI (multi-year Google Cloud partnership, Tempus, Mayo Clinic collaboration). The company announced the proposed acquisition of Terns Pharmaceuticals (TERN-701 for CML), expected to drive long-term growth but with an estimated ~ $5.8 billion one-time R&D charge (~$2.35/share) and incremental EPS impact this year. Management emphasized continued focus on business development, prioritizing science-driven deals in the $1–$15 billion sweet spot (willing to go larger for strategic fits), sustained capital allocation to R&D and dividends, and ~$3 billion of buybacks planned for 2026.