Merck Stock Earnings Reports

Merck reported Q1 2026 revenue of $16.3 billion, up 5% year-over-year (3% ex-FX), led by continued strength in oncology (KEYTRUDA family up 8% to $8.0B), animal health, and contributions from new product launches. Key pipeline and regulatory developments include FDA approval of IDVYNSO (HIV), FDA priority reviews for I-DXd (with Daiichi Sankyo) in extensive-stage small cell lung cancer and for multiple WELIREG combinations in RCC, initiation of Phase IIb/III trials for MK-8748 (TIE-2/VEGF bispecific) in nAMD, and positive Phase III/II readouts across cardiometabolic (enlicitide oral PCSK9), WINREVAIR in select pulmonary hypertension populations, and RSV (ENFLONSIA). Merck is transforming its commercial structure into therapeutic-area business units to accelerate >20 new product launches it believes could represent a >$70 billion commercial opportunity by the mid-2030s. Financially, Merck narrowed and raised the midpoint of its 2026 revenue and non-GAAP EPS guidance (revenue $65.8–67.0B; EPS $5.04–5.16) but reported a GAAP loss of $1.28 per share in Q1 driven by a large one-time, non-tax-deductible charge related to the Cidara acquisition (negative $3.62 per share). Merck intends to close the proposed acquisition of Terns (TERN-701 for CML), expects a onetime R&D charge of about $5.8B (~$2.35/share) and modest near-term EPS impact, and remains committed to dividends and ~$3B of share repurchases for the year. Management emphasized ongoing BD activity (target deal sizes ~$1B–$15B but flexible for strategic opportunities), multi-partner AI/data initiatives (Google Cloud, Tempus, Mayo Clinic), and a busy upcoming clinical/regulatory calendar (including ASCO investor event June 1 and several PDUFA dates through the fall).