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 contributions from multiple new product launches. KEYTRUDA sales grew 8% to $8.0B; GARDASIL declined as expected due to lower demand in China and Japan. Merck highlighted strong momentum across oncology (multiple approvals/priority reviews including IDVYNSO approval and I-DXd priority review), cardiometabolic and respiratory (enlicitide Phase III and positive WINREVAIR data), ophthalmology (initiation of Phase IIb/III MK-8748), RSV and HIV progress (IDVYNSO FDA approval). The company is transforming its commercial organization into therapeutic-area business units, announced senior leadership changes, and launched multiyear AI partnerships (Google Cloud, Tempus, Mayo Clinic) to accelerate R&D. Merck reiterated its capital allocation priorities (investments, dividend, BD), plans ~$3B in share repurchases, and remains active on M&A (proposed acquisition of Terns; expects an onetime R&D charge of ~$5.8B / ~$2.35 per share and ~ $0.12 EPS drag this year). Q1 included a large onetime nondeductible charge related to the Cidara acquisition that produced a GAAP loss; Merck narrowed and raised the midpoint of its 2026 non-GAAP revenue and EPS guidance (revenue $65.8–67.0B; EPS $5.04–5.16). Management emphasized a robust upcoming 18-month cadence of Phase III readouts and multiple regulatory milestones (including PDUFA dates for WELIREG combinations and I-DXd).