Analyst Consensus ?
ConsensusBuy38 ratings
Bullish2668.4%
Neutral1129.0%
Bearish12.6%
Merck & Co., Inc. · MRK · FY2026 Q1 · Calendar Q2 2026
Merck Q1 2026: Revenue Beat and Raised Guidance, But One-Time Charges Weigh on EPS
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…
Reported Before market openNYSEHealthcare
$322.95B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$-1.28
Consensus $-1.47
EPS surprise
+12.9%
Reported versus consensus
Reported revenue
$16.29B
Consensus $15.85B
Revenue surprise
+2.8%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-1.6%
Event window
SPY move
+1.0%
Same window
Abnormal move
-2.6%
Stock minus SPY
Volume
1.9×
Versus trailing sessions
Subsequent drift
+8.7%
Up to 20 sessions
MRKSPY benchmark
Ask FN2 about MRK FY2026 Q1
Transcript, numbers and history already loaded
Why did MRK fall 1.6% after beating EPS estimates in FY2026 Q1?What changed in MRK's guidance and outlook in FY2026 Q1?Give me the bull and bear case for MRK after FY2026 Q1 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Revenue beat consensus by roughly $440M ($16.29B vs. $15.85B est.), up 5% YoY. EPS beat despite the one-time Cidara charge (-$1.28 vs. -$1.47 est.). Full-year EPS guidance raised to $5.04-$5.16 from $5.00-$5.15. New FDA approval of IDVYNSO for HIV. Priority reviews granted for I-DXd (small-cell lung cancer) and WELIREG combinations. Pending Terns Pharmaceuticals acquisition announced with ~$5.8B expected increase in R&D expense. Google Cloud AI partnership launched. Gardasil sales fell 22% on weak China and Japan demand. Keytruda Q3 timing headwind flagged from earlier wholesaler purchasing.
Guidance delta
Full-year EPS guidance raised from $5.00-$5.15 to $5.04-$5.16, with revenue guidance also increased. Guidance sentiment was raised, reflecting operational strength in oncology and animal health despite one-time acquisition charges.
Key takeaways
- Q1 revenue of $16.3B beat consensus by roughly $440M, up 5% YoY on oncology and animal-health strength
- EPS guidance raised to $5.04-$5.16 despite a $9B one-time Cidara acquisition charge pushing quarterly EPS to -$1.28 (still ahead of the -$1.47 consensus)
- FDA approval of IDVYNSO for HIV and priority reviews for I-DXd (small-cell lung cancer) and WELIREG combinations expand near-term commercial opportunity
- Pending Terns Pharmaceuticals acquisition and Google Cloud AI partnership signal investment in pipeline depth and operational efficiency
- Gardasil sales fell 22% on weaker demand in China and Japan, a persistent headwind
- Stock initially dropped 2.6% on the print but subsequently drifted 8.7% higher, suggesting investors looked past one-time charges to the raised outlook
Management priorities
- Deliver multiple Phase III data readouts over the next 18 months across oncology, cardiometabolic, and ophthalmology
- Complete the Terns Pharmaceuticals acquisition and integrate TERN-701 for chronic myeloid leukemia
- Roll out AI capabilities company-wide through the Google Cloud partnership
- Launch and commercialize over 20 new products across therapeutic areas
- Implement the new product-focused commercial business-unit model
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$140.59Current
$80Low
$137.04Average
$180High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 26, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| RBC Capital | Sector Perform | Sector Perform | Maintain | Oct 12, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Oct 12, 2026 |
| Cantor Fitzgerald | Neutral | Neutral | Maintain | Oct 8, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Oct 7, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Oct 5, 2026 |
| Scotiabank | Sector Outperform | Sector Outperform | Maintain | Sep 29, 2026 |
| HSBC | Buy | Buy | Maintain | Sep 10, 2026 |
| Leerink Partners | Outperform | Outperform | Maintain | Sep 9, 2026 |
| Guggenheim | Buy | Buy | Maintain | Sep 8, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | Sep 4, 2026 |
| Wolfe Research | Outperform | Outperform | Maintain | Aug 25, 2026 |
| Argus Research | Buy | Buy | Maintain | Aug 25, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Aug 21, 2026 |
| UBS | Buy | Buy | Maintain | Aug 20, 2026 |
| BMO Capital | Outperform | Outperform | Maintain | Aug 20, 2026 |
| Daiwa Capital | Outperform | Neutral | Upgrade | Aug 12, 2026 |
| Barclays | Overweight | Overweight | Maintain | Jul 29, 2026 |
| B of A Securities | Buy | Buy | Maintain | Jun 30, 2026 |
| Freedom Broker | Hold | Hold | Maintain | Feb 9, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jan 20, 2026 |
| Deutsche Bank | Hold | Hold | Maintain | Nov 18, 2025 |
| Berenberg | Hold | Buy | Downgrade | Sep 17, 2025 |
| Truist Securities | Hold | Buy | Downgrade | Jan 8, 2025 |
| Societe Generale | Sell | Hold | Downgrade | Mar 11, 2024 |
| Atlantic Equities | Overweight | Overweight | Maintain | May 1, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Mar 7, 2023 |
| SVB Leerink | Outperform | Outperform | Maintain | Feb 3, 2023 |
| Erste Group | Buy | Hold | Upgrade | Aug 25, 2022 |
| Cowen & Co. | Market Perform | Market Perform | Maintain | Jun 27, 2022 |
| Bank of America | Buy | Buy | Maintain | May 1, 2019 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Oct 29, 2018 |
| DZ Bank | Buy | Hold | Upgrade | Feb 13, 2018 |
| Leerink Swann | Market Perform | Market Perform | Maintain | Feb 6, 2018 |
| Jefferies | Hold | Underperform | Upgrade | Oct 31, 2017 |
| Bernstein | Outperform | Market Perform | Upgrade | Jan 5, 2015 |
| MainFirst Bank AG | Outperform | Underperform | Upgrade | Jul 28, 2014 |
| Mainfirst | Outperform | Underperform | Upgrade | Jul 28, 2014 |
| MKM Partners | Buy | Buy | Maintain | Apr 14, 2014 |
Named analyst price targets
Upside is calculated against the persisted current price $140.59. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Wells Fargo | Analyst unavailable | $165 | $147.24 | +17.4% | Oct 22, 2026 |
| Goldman Sachs | Analyst unavailable | $155 | $146.26 | +10.2% | Oct 19, 2026 |
| RBC Capital | Trung Huynh | $145 | $145.6 | +3.1% | Oct 12, 2026 |
| Cantor Fitzgerald | Carter Gould | $145 | $142.79 | +3.1% | Oct 8, 2026 |
| Scotiabank | Analyst unavailable | $180 | $147.15 | +28.0% | Sep 29, 2026 |
| Berenberg Bank | Luisa Hector | $137 | $144.71 | -2.6% | Sep 11, 2026 |
| HSBC | Analyst unavailable | $172 | $147.6 | +22.3% | Sep 10, 2026 |
| Leerink Partners | Analyst unavailable | $161 | $148.49 | +14.5% | Sep 9, 2026 |
| Guggenheim | Vamil Divan | $170 | $150.34 | +20.9% | Sep 8, 2026 |
| Wells Fargo | Analyst unavailable | $170 | $152.34 | +20.9% | Sep 4, 2026 |
| Argus Research | Jasper Hellweg | $170 | $153.61 | +20.9% | Aug 25, 2026 |
| Wolfe Research | Alexandria Hammond | $180 | $150.69 | +28.0% | Aug 25, 2026 |
| Goldman Sachs | Analyst unavailable | $160 | $149.25 | +13.8% | Aug 21, 2026 |
| BMO Capital | Analyst unavailable | $170 | $149.65 | +20.9% | Aug 20, 2026 |
| UBS | Analyst unavailable | $175 | $152.22 | +24.5% | Aug 20, 2026 |
| RBC Capital | Analyst unavailable | $150 | $152.22 | +6.7% | Aug 20, 2026 |
| UBS | Matthew Weston | $150 | $152.22 | +6.7% | Aug 20, 2026 |
| Morgan Stanley | Analyst unavailable | $179 | $152.22 | +27.3% | Aug 19, 2026 |
| Daiwa | Analyst unavailable | $143 | $130.45 | +1.7% | Aug 12, 2026 |
| Argus Research | Jasper Hellweg | $145 | $130.9 | +3.1% | Aug 11, 2026 |
| Morgan Stanley | Terence Flynn | $116 | $130.4 | -17.5% | Aug 5, 2026 |
| Guggenheim | Vamil Divan | $146 | $128.04 | +3.8% | Aug 5, 2026 |
| Barclays | Emily Field | $150 | $131.84 | +6.7% | Jul 29, 2026 |
| Bernstein | Courtney Breen | $105 | $132.34 | -25.3% | Jul 27, 2026 |
| BMO Capital | Analyst unavailable | $142 | $124.08 | +1.0% | Jul 13, 2026 |
| Guggenheim | Vamil Divan | $145 | $123.54 | +3.1% | Jul 13, 2026 |
| HSBC | Rajesh Kumar | $150 | $126.05 | +6.7% | Jul 6, 2026 |
| Jefferies | Analyst unavailable | $141 | $129.38 | +0.3% | Jun 30, 2026 |
| Scotiabank | Analyst unavailable | $155 | $129.38 | +10.2% | Jun 29, 2026 |
| Guggenheim | Vamil Divan | $140 | $115.21 | -0.4% | Jun 2, 2026 |
| Morgan Stanley | Terence Flynn | $112 | $112.47 | -20.3% | May 1, 2026 |
| Wells Fargo | Mohit Bansal | $150 | $116.22 | +6.7% | Mar 12, 2026 |
| RBC Capital | Trung Huynh | $142 | $123.93 | +1.0% | Feb 24, 2026 |
| Deutsche Bank | James Shin | $150 | $121.53 | +6.7% | Feb 13, 2026 |
| Goldman Sachs | Asad Haider | $133 | $115.86 | -5.4% | Feb 4, 2026 |
| BMO Capital | Analyst unavailable | $135 | $115.86 | -4.0% | Feb 4, 2026 |
| Bernstein | Analyst unavailable | $100 | $115.86 | -28.9% | Feb 4, 2026 |
| Scotiabank | Analyst unavailable | $136 | $116.37 | -3.3% | Feb 3, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $116 | $107.4 | -17.5% | Jan 27, 2026 |
| Wolfe Research | Analyst unavailable | $135 | $108.59 | -4.0% | Jan 8, 2026 |
| UBS | Analyst unavailable | $130 | $110.96 | -7.5% | Jan 7, 2026 |
| BMO Capital | Analyst unavailable | $130 | $99.21 | -7.5% | Dec 18, 2025 |
| Morgan Stanley | Analyst unavailable | $102 | $100.06 | -27.4% | Dec 12, 2025 |
| HSBC | Rajesh Kumar | $120 | $96.89 | -14.6% | Dec 10, 2025 |
| Guggenheim | Analyst unavailable | $122 | $100.89 | -13.2% | Dec 5, 2025 |
| Scotiabank | Louise Chen | $120 | $101.88 | -14.6% | Dec 4, 2025 |
| Goldman Sachs | Asad Haider | $120 | $101.83 | -14.6% | Dec 2, 2025 |
| Morgan Stanley | Terence Flynn | $100 | $84.65 | -28.9% | Nov 3, 2025 |
| Berenberg Bank | Luisa Hector | $90 | $81.14 | -36.0% | Sep 17, 2025 |
| Morgan Stanley | Terence Flynn | $98 | $84.39 | -30.3% | Jul 10, 2025 |
| BMO Capital | Evan Seigerman | $82 | $82.74 | -41.7% | Apr 25, 2025 |
| Morgan Stanley | Terence Flynn | $106 | $90.74 | -24.6% | Feb 5, 2025 |
| Bernstein | Courtney Breen | $110 | $100.69 | -21.8% | Dec 2, 2024 |
| Jefferies | Akash Tewari | $148 | $98.36 | +5.3% | Nov 15, 2024 |
| BMO Capital | Evan David Seigerman | $136 | $101.88 | -3.3% | Nov 1, 2024 |
| UBS | Trung Huynh | $136 | $108.88 | -3.3% | Oct 9, 2024 |
| Barclays | Carter Gould | $140 | $109.77 | -0.4% | Oct 7, 2024 |
| Jefferies | Akash Tewari | $147 | $113.49 | +4.6% | Aug 15, 2024 |
| UBS | Colin Bristow | $142 | $112.89 | +1.0% | Jul 31, 2024 |
| Bank of America Securities | Geoff Meacham | $145 | $115.21 | +3.1% | Jul 31, 2024 |
| Wells Fargo | Mohit Bansal | $140 | $131.05 | -0.4% | Jun 12, 2024 |
| BMO Capital | Evan David Seigerman | $148 | $127.71 | +5.3% | May 30, 2024 |
| Truist Financial | Analyst unavailable | $142 | $130.81 | +1.0% | Mar 27, 2024 |
| Jefferies | Akash Tewari | $145 | $130.18 | +3.1% | Mar 27, 2024 |
| Wells Fargo | Mohit Bansal | $135 | $130.19 | -4.0% | Mar 27, 2024 |
| Loop Capital Markets | Evan David Seigerman | $132 | $101.44 | -6.1% | Nov 22, 2023 |
| Oppenheimer | Jay Olson | $147 | $56.34 | +4.6% | Apr 12, 2023 |
| Wells Fargo | Analyst unavailable | $120 | $103.28 | -14.6% | Feb 3, 2023 |
| Morgan Stanley | Analyst unavailable | $99 | $103.46 | -29.6% | Feb 3, 2023 |
| Wells Fargo | Analyst unavailable | $125 | $110.62 | -11.1% | Jan 3, 2023 |
| Cantor Fitzgerald | Analyst unavailable | $135 | $109.2 | -4.0% | Dec 19, 2022 |
| Credit Suisse | Analyst unavailable | $120 | $102.31 | -14.6% | Nov 18, 2022 |
| Leerink Partners | Analyst unavailable | $110 | $86.64 | -21.8% | Sep 30, 2022 |
| Leerink Partners | Analyst unavailable | $109 | $87.34 | -22.5% | Sep 12, 2022 |
| Barclays | Analyst unavailable | $101 | $88.62 | -28.2% | Jul 29, 2022 |
| Morgan Stanley | Analyst unavailable | $92 | $89.26 | -34.6% | Jul 29, 2022 |
| Leerink Partners | Analyst unavailable | $105 | $89.94 | -25.3% | Jul 29, 2022 |
| UBS | Analyst unavailable | $98 | $94.34 | -30.3% | Jul 18, 2022 |
| Atlantic Equities | Analyst unavailable | $110 | $93.6 | -21.8% | Jul 13, 2022 |
| Morgan Stanley | Analyst unavailable | $88 | $93.01 | -37.4% | Jul 8, 2022 |
| Morgan Stanley | Analyst unavailable | $87 | $88.62 | -38.1% | Apr 29, 2022 |
| Leerink Partners | Analyst unavailable | $102 | $88.58 | -27.4% | Apr 29, 2022 |
| Leerink Partners | Analyst unavailable | $97 | $86.46 | -31.0% | Apr 21, 2022 |
| Barclays | Carter Gould | $97 | $86.91 | -31.0% | Apr 16, 2022 |
| Morgan Stanley | Terence Flynn | $80 | $86.63 | -43.1% | Apr 11, 2022 |
| BMO Capital | Evan David Seigerman | $87 | $87.68 | -38.1% | Apr 10, 2022 |
| Goldman Sachs | Chris Shibutani | $93 | $75.02 | -33.9% | Dec 17, 2021 |
| UBS | Colin Bristow | $76 | $72.09 | -45.9% | Dec 13, 2021 |
| Citigroup | Andrew Baum | $85 | $73.53 | -39.5% | Nov 29, 2021 |
| Argus Research | David Toung | $110 | $86.25 | -21.8% | Nov 1, 2021 |
| Barclays | Carter Gould | $94 | $86.25 | -33.1% | Nov 1, 2021 |
| Bank of America Securities | Geoff Meacham | $86 | $86.45 | -38.8% | Oct 29, 2021 |
| Wolfe Research | Tim Anderson | $94 | $86.45 | -33.1% | Oct 29, 2021 |
| RBC Capital | Daniel Busby | $80 | $74.86 | -43.1% | Jul 29, 2021 |
Track every rating change on MRK the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationMerck & Co., Inc. is a global healthcare leader with operations spanning two core divisions: Pharmaceuticals and Animal Health. The Pharmaceutical segment is dedicated to human health, offering a broad spectrum of medicinal products. These cover crucial therapeutic areas such as oncology, acute hospital care, immunology, neuroscience, virology, cardiovascular conditions, and diabetes. This division also develops vital preventive vaccines for pediatric, adolescent, and adult populations. Meanwhile, the Animal Health segment focuses on the research, development, manufacturing, and marketing of veterinary medications, vaccines, and comprehensive health management solutions for animals. This division further provides innovative digital products designed for animal identification, traceability, and continuous monitoring.…
Historical context
All MRK earningsHealthcare peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| RDY Dr. Reddy's Laboratories Limited | FY2027 Q2 · Calendar Q4 2026 | +24.0% | -0.2% | Dr. Reddy’s: margins improve as semaglutide rollout advances |
| DGX Quest Diagnostics Incorporated | FY2026 Q3 · Calendar Q4 2026 | +4.5% | +1.8% | Quest Diagnostics: growth broadens, but PAMA remains a headwind |
| ARGX argenx SE | FY2026 Q3 · Calendar Q4 2026 | — | -1.6% | argenx: VYVGART momentum and a broader late-stage pipeline |
| MEDP Medpace Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | +9.0% | -1.3% | Medpace: Record awards lift backlog as 2026 outlook improves |
| MOH Molina Healthcare, Inc. | FY2026 Q3 · Calendar Q4 2026 | +12.7% | +0.8% | Molina reaffirms 2026 outlook as Florida contract scales |
Latest beats and misses
Who reports nextBeat on EPS
- FCNCAFY2026 Q3 · October 23, 2026+19.9% EPS+8.2% move
- FCNCNFY2026 Q3 · October 23, 2026+19.9% EPS+0.2% move
- FCNCOFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- FCNCPFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- RDYFY2027 Q2 · October 23, 2026+24.0% EPS-0.2% move
- SLBFY2026 Q3 · October 23, 2026+3.7% EPS+7.1% move
Missed on EPS
- INFYFY2027 Q2 · October 23, 2026-4.8% EPS-6.6% move
- BBDFY2026 Q3 · October 22, 2026-7.7% EPS+3.0% move
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
Get the MRK recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-28T09:51:20.553753+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T09:51:20.550881+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-28. For educational purposes only; not investment advice.