Merck Stock Earnings Reports

Merck delivered a solid Q3 2025 driven by Oncology (KEYTRUDA), Animal Health, and contributions from recent launches (WINREVAIR, CAPVAXIVE, ENFLONSIA). Total revenue was $17.3B (up ~4% YoY). KEYTRUDA grew 8% to $8.1B, with earlier-stage indications and combination regimens driving much of the growth; the company launched a subcutaneous formulation (KEYTRUDA QLEX) and expects 30–40% patient adoption over 18–24 months. Merck completed the Verona Pharma acquisition (OHTUVAYRE) and included that in updated 2025 guidance: revenue $64.5–65.0B and EPS $8.93–8.98 (non-GAAP), with EPS midpoint roughly unchanged versus prior. Gross margin ~82%; operating expense guidance $25.9–26.4B. The company emphasized continued disciplined BD (targeting $1B–$15B deals but open to larger transactions if science and value align), plus continued share repurchases (~$5B for full year) and commitment to dividends. R&D momentum: ~80 Phase III trials underway and multiple near-term milestones (notable PDUFA dates and trial readouts in oncology, HIV, cardiopulmonary, immunology). Key clinical highlights include positive Phase III results for enlicitide (oral PCSK9 inhibitor) and strong WINREVAIR data (including HYPERION and label expansion from ZENITH). Management reiterated large domestic manufacturing and R&D investments (announced >$70B plan) and engagement with the U.S. administration on pricing policy while stressing the need to preserve innovation incentives. Overall, Merck projects continued top-line growth into 2026 driven by new launches and pipeline progress, while flagging near-term headwinds from generic LOEs, U.S. purchasing timing effects, and potential pricing pressures internationally.