Key facts
- Merck's Q2 revenue reached $16.61 billion, exceeding analyst expectations.
- Keytruda sales increased 5% to $8.37 billion, driven by strong uptake of its subcutaneous formulation.
- The company reported a quarterly loss due to a $5.7 billion charge from the Terns Pharmaceuticals acquisition.
- Merck raised its full-year 2026 revenue forecast to $66.3 billion-$67.3 billion.
Merck reported second-quarter revenue of $16.61 billion, surpassing analyst expectations and prompting an increase in its full-year revenue forecast. The growth was primarily driven by strong sales of its flagship cancer treatment, Keytruda, which generated $8.37 billion in the quarter. The company noted that the newer subcutaneous formulation, Keytruda QLEX, is seeing significant adoption.
Despite the revenue beat, Merck reported a quarterly loss of 13 cents per share. This was largely due to a $5.7 billion charge related to its acquisition of cancer drug developer Terns Pharmaceuticals. Analysts had anticipated an adjusted loss per share of 27 cents.
Other key product sales included $1.17 billion for the Gardasil HPV vaccine, slightly exceeding consensus. However, sales of its measles, mumps, rubella, and chickenpox vaccines fell 3% to $592 million, attributed to lower U.S. demand in a declining overall vaccine market. Animal health sales performed well, rising 8% to $1.78 billion, slightly ahead of projections.
Merck now projects full-year 2026 revenue between $66.3 billion and $67.3 billion, up from its previous guidance. The company also anticipates 2026 adjusted earnings in the range of $2.66 to $2.76 per share, factoring in charges from recent acquisitions.