𝐌𝐞𝐫𝐜𝐤 𝐐𝟑 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐚𝐧𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐁𝐞𝐚𝐭 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬 𝐑𝐚𝐢𝐬𝐞𝐬 𝐅𝐘𝟐𝟎𝟐𝟔 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

⠀

📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Non-GAAP EPS: $2.49 (Est. $2.09) ✅, -3% YoY.

• Revenue: $18.09B (Est. $17.33B) ✅, +5% YoY.

• GAAP EPS: $2.04 (vs. $2.32 YoY).

• Net Income: $5.07B, -12% YoY.

• Non-GAAP Gross Margin: 81.4% (vs. 81.9% YoY).

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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• FY2026 Revenue: $66.8B–$67.3B, midpoint $67.05B (Est. $67.04B) 🟰, lower end raised.

• FY2026 Non-GAAP EPS: $2.77–$2.82, midpoint $2.80 (Est. $2.65) ✅, raised from $2.66–$2.76.

• FY2026 Non-GAAP Gross Margin: ~81%.

• FY2026 Non-GAAP Tax Rate: 32%–33%, lowered from 35%–36%.

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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Q3 EPS beat consensus by ~19.1%, while revenue exceeded estimates by ~4.4%.

• KEYTRUDA/KEYTRUDA QLEX revenue increased 6% to $8.60B, including $830M from QLEX.

• WINREVAIR sales surged 93% to $694M.

• GARDASIL revenue increased 14% to $2.00B.

• Pharmaceutical revenue benefited from ~$550M in purchase timing.

• Q3 EPS included a $0.12 per-share charge related to the SciBrunch licensing agreement.

• Phase 3 TroFuse-005: Sac-TMT reduced risk of death by 32% in certain endometrial cancer patients.

• Phase 3 INTerpath-001: Personalized cancer vaccine with Moderna reduced recurrence or death risk by 42% versus KEYTRUDA alone.

• FY2026 EPS guidance includes ~$6.05 per share in one-time business development charges.

⠀

💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

“Our science-led strategy is transforming our business.”

𝐌𝐞𝐫𝐜𝐤: 𝐐𝟑 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐚𝐧𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐁𝐞𝐚𝐭 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬, 𝐑𝐚𝐢𝐬𝐞𝐬 𝐅𝐘𝟐𝟎𝟐𝟔 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞