Merck & Co. reported a mixed financial performance for Q4 2025, with sales growth driven by its oncology and animal health segments, alongside new product contributions. However, a significant decline in vaccine sales, particularly GARDASIL/GARDASIL 9, and increased restructuring costs impacted profitability.
Fourth-quarter worldwide sales were $16.4 billion, a 5% increase (4% excluding foreign exchange).
positiveFull-year worldwide sales reached $65.0 billion, a 1% increase (2% excluding foreign exchange).
positiveKEYTRUDA/KEYTRUDA QLEX sales grew 7% to $8.4 billion in Q4 and $31.7 billion for the full year.
positiveAnimal Health sales grew 8% in Q4 and 8% for the full year, reaching $1.5 billion and $6.4 billion, respectively.
positiveAnnounced positive late-stage trial results from 18 Phase 3 trials in 2025, advancing the pipeline.
positiveCompleted acquisition of Cidara Therapeutics for approximately $9.2 billion, adding MK-1406 to the portfolio.
positiveGARDASIL/GARDASIL 9 sales declined 34% in Q4 and 39% for the full year, primarily due to lower demand in China and Japan.
negativeGAAP gross margin declined to 66.2% in Q4 2025 from 75.5% in Q4 2024, primarily due to higher restructuring costs, inventory write-offs, and amortization of intangible assets.
negativeFull-year 2026 Non-GAAP EPS outlook is $5.00 to $5.15, which includes a one-time charge of approximately $3.65 per share for the acquisition of Cidara.
attentionGAAP net income decreased 21% in Q4 2025 to $2.96 billion from $3.74 billion in Q4 2024.
negativeResearch and development expenses decreased 15% in Q4 2025 and 12% for the full year, primarily due to lower charges for business development activity.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Pharmaceutical | N/A | — | — | — | +4.0% |
Animal Health | N/A | — | — | — | +6.0% |
Other Revenues | N/A | — | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
In 2025, we continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients around the world.
Our business benefited from demand for our innovative portfolio, including for KEYTRUDA, increasing contributions from new launches in cardiometabolic and respiratory as well as vaccines, and strong performance of Animal Health.
The transformation of our portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as we continue to execute on our strategy.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.