Merck (MRK) · Pharmaceuticals
Merck Q2 2026 earnings: summary, key numbers & outlook
Results filed 4 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Merck reported second-quarter 2026 Total Worldwide Sales of $16.6 Billion (5% Growth; 4% Growth ex-FX), with a GAAP Loss per Share of $0.54 and a Non-GAAP Loss per Share of $0.13 that include a Charge of $2.31 per Share for the Acquisition of Terns.
Merck's second-quarter sales rose 5% to $16.6 billion, led by Keytruda and its new under-the-skin version Keytruda Qlex, plus Animal Health and newer launches such as Winrevair. The company still posted a loss per share of $0.54 on a GAAP basis, because it booked a $5.7 billion one-time charge to acquire Terns Pharmaceuticals. Excluding that charge, profitability would have been well above zero.
Management raised and narrowed its full-year sales outlook to $66.3 billion to $67.3 billion. It cut expected non-GAAP EPS to $2.66 to $2.76 from $5.04 to $5.16, mainly because the Terns charge was not in the prior outlook. The tension is that older products such as Januvia and Gardasil are shrinking while expensive acquisitions and a higher expected tax rate of 35.0% to 36.0% weigh on earnings.
Key numbers
- Total worldwide sales
- $16.6 Billion
- GAAP net (loss) income attributable to Merck · GAAP
- -$1.3B
- GAAP loss per share · GAAP
- $0.54
- Non-GAAP loss per share · non-GAAP
- $0.13
- GAAP gross margin · GAAP
- 73.5%
- Non-GAAP gross margin · non-GAAP
- 81.1%
5% growth; 4% growth ex-FX
compared with income of 4,427 in the prior-year quarter
loss, compared with earnings of $1.76 in the prior-year quarter
loss, compared with earnings of $2.13 in the prior-year quarter
compared with 77.5% for the second quarter of 2025
compared with 82.2% for the second quarter of 2025
| Segment or metric | Value | Change |
|---|---|---|
| KEYTRUDA/KEYTRUDA QLEX | $8.4 Billion | 5% growth; 4% growth ex-FX |
| KEYTRUDA QLEX | $463 Million | |
| WINREVAIR | $588 Million | 75% growth; 75% growth ex-FX |
| Animal Health | $1.8 Billion | 8% growth; 5% growth ex-FX |
| GARDASIL/GARDASIL 9 | $1.2B | 4% growth; 3% growth ex-FX |
| JANUVIA/JANUMET | $429.0M | down 31% |
| OHTUVAYRE | $204.0M |
Where each number comes from
- Total worldwide sales: “Total Worldwide Sales Were $16.6 Billion (5% Growth; 4% Growth ex-FX) o KEYTRUDA/KEYTRUDA QLEX1 Sales Were $8.4 Billion”
- GAAP net (loss) income attributable to Merck: “GAAP net (loss) income2 | (1,335) | 4,427 | N/M | N/M Non-GAAP net (loss) income that excludes certain items2,3* | (330) | 5,366”
- GAAP loss per share: “GAAP Loss per Share Was $0.54; Non-GAAP Loss per Share Was $0.13; GAAP and Non-GAAP Loss per Share Include a Charge of $2.31 per Share for the Acquisition of Terns”
- Non-GAAP loss per share: “GAAP Loss per Share Was $0.54; Non-GAAP Loss per Share Was $0.13; GAAP and Non-GAAP Loss per Share Include a Charge of $2.31 per Share for the Acquisition of Terns”
- GAAP gross margin: “Gross margin was 73.5% for the second quarter of 2026 compared with 77.5% for the second quarter of 2025.”
- Non-GAAP gross margin: “Non-GAAP gross margin was 81.1% for the second quarter of 2026 compared with 82.2% for the second quarter of 2025.”
- KEYTRUDA/KEYTRUDA QLEX: “Total Worldwide Sales Were $16.6 Billion (5% Growth; 4% Growth ex-FX) o KEYTRUDA/KEYTRUDA QLEX1 Sales Were $8.4 Billion”
- KEYTRUDA QLEX: “KEYTRUDA/KEYTRUDA QLEX1 Sales Were $8.4 Billion (5% Growth; 4% Growth ex-FX); Includes KEYTRUDA QLEX Sales of $463 Million”
- WINREVAIR: “o WINREVAIR Sales Were $588 Million (75% Growth; 75% Growth ex-FX) o Animal Health Sales Were $1.8 Billion (8% Growth; 5% Growth ex-FX)”
- Animal Health: “o WINREVAIR Sales Were $588 Million (75% Growth; 75% Growth ex-FX) o Animal Health Sales Were $1.8 Billion (8% Growth; 5% Growth ex-FX)”
- GARDASIL/GARDASIL 9: “GARDASIL/GARDASIL 9 | 1,169 | 1,126 | 4% | 3% | Increase primarily due to higher demand in Asia Pacific and Europe”
- JANUVIA/JANUMET: “JANUVIA/JANUMET | 429 | 623 | -31% | -31% | Decline primarily due to lower demand and net pricing in the U.S. due to competition”
- OHTUVAYRE: “OHTUVAYRE | 204 | - | - | - | Product obtained as part of the Company’s October 2025 acquisition of Verona Pharma plc.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $16.6B | +5.1% | +2.0% |
| Net income | -$1.3B | — | +68.5% |
| Diluted EPS | -$0.54 | — | +68.6% |
| Free cash flow | $4.5B | +77.0% | +53.0% |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Worldwide sales | full-year 2026 | $66.3 billion and $67.3 billion |
| Non-GAAP EPS | full-year 2026 | $2.66 and $2.76 |
| Non-GAAP gross margin | full-year 2026 | Approximately 81% |
| Non-GAAP operating expenses | full-year 2026 | $42.0 billion to $42.7 billion |
| Non-GAAP effective income tax rate | full-year 2026 | 35.0% and 36.0% |
| Non-GAAP other (income) expense, net | full-year 2026 | Approximately $1.4 billion expense |
Key takeaways
Terns charge drove the quarterly loss
Both GAAP and non-GAAP results include a charge of $2.31 per share for the acquisition of Terns, with R&D expenses including a $5.7 billion charge. GAAP loss per share was $0.54 and non-GAAP loss per share was $0.13.
Keytruda grows as Qlex ramps
KEYTRUDA/KEYTRUDA QLEX sales were $8.4 billion, up 5%, including KEYTRUDA QLEX sales of $463 million.
Winrevair and Welireg are scaling quickly
WINREVAIR sales were $588 million, up 75%, and WELIREG sales were 271 million, up 67%.
Older products are eroding
JANUVIA/JANUMET sales fell 31% to 429 million, and VAXNEUVANCE fell 35%, reflecting competition and generics.
Full-year EPS outlook cut on acquisition charges
Non-GAAP EPS is now expected at $2.66 to $2.76 versus $5.04 to $5.16 prior, while the sales range was raised to $66.3 billion to $67.3 billion.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $15.6B * |
| Q1 2025 | $15.5B |
| Q2 2025 | $15.8B |
| Q3 2025 | $17.3B |
| Q4 2025 | $16.4B * |
| Q1 2026 | $16.3B |
| Q2 2026 | $16.6B |
| Q3 2026 | $18.1B |
Data
| Q1 2025 | $2.01 |
| Q2 2025 | $1.76 |
| Q3 2025 | $2.32 |
| Q1 2026 | -$1.72 |
| Q2 2026 | -$0.54 |
| Q3 2026 | $2.04 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | $2.5B |
| Q1 2025 | $1.2B |
| Q2 2025 | $2.5B |
| Q3 2025 | $6.8B |
| Q4 2025 | $1.8B |
| Q1 2026 | $2.9B |
| Q2 2026 | $4.5B |
| Q3 2026 | $5.5B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Merck's second-quarter 2026 sales?
Total worldwide sales were $16.6 billion, up 5% (4% excluding foreign exchange) from the second quarter of 2025. KEYTRUDA/KEYTRUDA QLEX contributed $8.4 billion.
Why did Merck report a loss in the second quarter?
Merck recorded a $2.31 per share charge for the acquisition of Terns, including a $5.7 billion R&D charge with no tax benefit. GAAP loss per share was $0.54 and non-GAAP loss per share was $0.13.
What is Merck's updated 2026 guidance?
Sales are now expected at $66.3 billion to $67.3 billion, raised from $65.8 billion to $67.0 billion. Non-GAAP EPS is expected at $2.66 to $2.76, down from $5.04 to $5.16 because of the Terns charges.
How did Merck's key growth products perform?
WINREVAIR sales were $588 million (up 75%), KEYTRUDA QLEX was $463 million, and Animal Health was $1.8 billion (up 8%). Declines came from JANUVIA/JANUMET (down 31%) and VAXNEUVANCE (down 35%).
What happened to Merck's margins?
GAAP gross margin was 73.5% versus 77.5% a year earlier, mainly on higher intangible amortization and inventory write-downs. Non-GAAP gross margin was 81.1% versus 82.2%.
Documents
SEC filing