# Merck (MRK) Q2 2026 earnings

Results filed 2026-08-04 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/mrk/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/310158/000110465926090045/0001104659-26-090045-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total worldwide sales | $16.6 Billion | 5% growth; 4% growth ex-FX |  |
| GAAP net (loss) income attributable to Merck | (1,335) | compared with income of 4,427 in the prior-year quarter | GAAP |
| GAAP loss per share | $0.54 | loss, compared with earnings of $1.76 in the prior-year quarter | GAAP |
| Non-GAAP loss per share | $0.13 | loss, compared with earnings of $2.13 in the prior-year quarter | non-GAAP |
| GAAP gross margin | 73.5% | compared with 77.5% for the second quarter of 2025 | GAAP |
| Non-GAAP gross margin | 81.1% | compared with 82.2% for the second quarter of 2025 | non-GAAP |

## Segments and operating metrics

| Name | 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 | 1,169 | 4% growth; 3% growth ex-FX |
| JANUVIA/JANUMET | 429 | down 31% |
| OHTUVAYRE | 204 |  |

## 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

1. **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.
2. **Keytruda grows as Qlex ramps** KEYTRUDA/KEYTRUDA QLEX sales were $8.4 billion, up 5%, including KEYTRUDA QLEX sales of $463 million.
3. **Winrevair and Welireg are scaling quickly** WINREVAIR sales were $588 million, up 75%, and WELIREG sales were 271 million, up 67%.
4. **Older products are eroding** JANUVIA/JANUMET sales fell 31% to 429 million, and VAXNEUVANCE fell 35%, reflecting competition and generics.
5. **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.

## 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%.