MRK
FY2026 Q1 · Calendar Q2 2026
Merck & Co., Inc.
Merck's Q1 2026 results underscore a company in transition: core Keytruda revenue remains strong, but the earnings profile is being reshaped by large one-time charges (Cidara: $9B) and strategic bets (pending Terns acquisition, Google Cloud AI partnership). Revenue beat consensus by roughly $440M, growing 5% YoY on oncology and animal-health strength. Management raised full-year EPS guidance to $5.04-$5.16, reflecting operational confidence. The pipeline showed breadth with FDA approval of IDVYNSO for HIV, priority reviews for I-DXd and WELIREG combinations, and over 20 planned product launches. However, Gardasil's 22% decline on China and Japan weakness and the approaching Keytruda LOE in 2028-2029 remain meaningful headwinds. The market initially reacted negatively (-2.6% abnormal move) but subsequently drifted +8.7% higher, suggesting investors ultimately looked past the one-time…
EPS surprise+12.9%
Market move-1.6%
