Here's the hot stuff from Merck & Co., Inc.
$MRK (+0,77%) (NYSE: MRK) Q2 2026 Earnings Release, delivered fresh on August 4, 2026, before the U.S. market opened, from Rahway, New Jersey:
🚀 Top-Line Performance & Blockbuster Power
The U.S. pharmaceutical giant beat analysts’ estimates for revenue and earnings in the second quarter of 2026 thanks to continued strength in its oncology and cardiovascular portfolios:
Total revenue: Climbed to $16.60 billion (+4% YoY ex-FX), significantly beating the consensus estimate of ~$16.41 billion.
Keytruda & Keytruda Qlex: Together, they reached $8.40 billion (+4% ex-FX). The new subcutaneous hopeful Keytruda QLEX already contributed 463 million USD to the total.
Winrevair booster: Revenue from the newly launched pulmonary hypertension drug surged by +75% on an ex-FX basis to 588 million USD .
Animal Health: Grew by +8% YoY to $1.78 billion (above the consensus estimate of $1.75 billion).
Gardasil: Reported stable sales of $1.17 billion (slightly above the consensus estimate of $1.15 billion).
🔮 One-time M&A charges weigh on earnings, but consensus is beaten
Due to one-time expenses related to the acquisition of Terns Pharmaceuticals ($2.31 per share), Merck posted a net loss for the quarter on an accounting basis—but still beat estimates:
Non-GAAP EPS: Came in at -0.13 USD (exceeding analysts’ expectations of -0.27 USD ).
M&A impact: The result includes a charge of $2.31 per share from the Terns transaction. Excluding this one-time item, operating profitability is exceptionally strong.
FDA milestone: Approval of LIPFENDRA (Enlicitide)—the first and only once-daily oral PCSK9 inhibitor for lowering cholesterol.
🤖 Revenue Upgrade vs. EPS Adjustment
Merck is adjusting its full-year 2026 forecast due to strong operating trends and recorded M&A costs:
Revenue forecast raised: Management is raising the full-year revenue target to $66.3 billion to $67.3 billion (previously $65.8–$67.0 billion).
FY 2026 Non-GAAP EPS: Is being raised to $2.66 to $2.76 (reflects a total of $2.43 per share in one-time and financing costs related to the Terns acquisition, as well as expenses incurred at Cidara).
⚡ 💡 Jack’s take
An absolutely impressive operational beat! Merck demonstrates that its engine is running at full speed even during a phase of intensive M&A restructuring. Keytruda remains a stronghold, and the transformation to Keytruda QLEX is progressing faster than expected. Together with the Winrevair surge (+75%), the recent FDA approval for LIPFENDRA, and the raised full-year revenue forecast, CEO Rob Davis is consistently setting the course for the post-Keytruda patent expiration era!
