Merck & Co. reported a mixed first quarter with solid sales growth driven by key products like KEYTRUDA and WINREVAIR, alongside a significant acquisition of Terns Pharmaceuticals. However, the company posted a substantial GAAP net loss due to a large acquisition charge, impacting EPS, and faces ongoing challenges in certain vaccine and diabetes segments.
Total worldwide sales increased 5% to $16.3 billion (3% excluding foreign exchange).
positiveKEYTRUDA/KEYTRUDA QLEX sales grew 12% (8% ex-FX) to $8.0 billion, driven by strong demand in metastatic and earlier-stage indications.
positiveWINREVAIR sales surged 88% (87% ex-FX) to $525 million, reflecting strong uptake in the U.S. and international markets.
positiveAnimal Health sales grew 13% (6% ex-FX) to $1.8 billion, driven by both Livestock and Companion Animal portfolios.
positiveFull-year 2026 sales outlook was narrowed and raised to $65.8 billion - $67.0 billion.
positiveFull-year 2026 non-GAAP EPS outlook was narrowed and raised to $5.04 - $5.16.
positiveReceived U.S. FDA approval for IDVYNSO for HIV-1 treatment.
positiveAnnounced agreement to acquire Terns Pharmaceuticals to expand hematology pipeline with TERN-701.
positiveReported a GAAP net loss of $4.24 billion, or $1.72 per share, primarily due to a $3.62 per share charge for the acquisition of Cidara Therapeutics.
negativeNon-GAAP net loss of $3.16 billion, or $1.28 per share, also impacted by the Cidara acquisition charge.
negativeGARDASIL/GARDASIL 9 sales declined 19% (-22% ex-FX) to $1.07 billion, primarily due to lower demand in China and Japan, and unfavorable public-sector purchasing patterns in the U.S.
attentionJANUVIA/JANUMET sales decreased 28% (-29% ex-FX) to $574 million due to lower demand and net pricing in the U.S. and generic competition in other markets.
attentionLAGEVRIO sales declined 73% to $28 million, largely due to lower demand in Japan and the U.S.
attentionThe full-year 2026 outlook does not reflect the proposed acquisition of Terns Pharmaceuticals, which is expected to result in a one-time charge of approximately $5.8 billion or $2.35 per share.
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 | — | — | — | +2.0% |
Animal Health | N/A | — | — | — | +6.0% |
Other Revenues | N/A | — | — | — | +4.0% |
| 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.
Focus on transforming the portfolio with diversified growth drivers.
Strengthening the pipeline through science-led business development, exemplified by the Terns acquisition.
Achieved important milestones, including FDA approval of IDVYNSO.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.