Merck & Co. Inc. (NYSE:MRK) stock edged higher Thursday after the drugmaker reported third-quarter results that topped Wall Street revenue expectations and upbeat financial guidance.
The company reported adjusted earnings of $2.49 per share, beating analysts’ expected earnings of $2.08.
Revenue increased 5% year over year to $18.085 billion, beating the consensus estimate of $17.313 billion, reflecting increased contributions from new products as well as strength in Oncology and Animal Health.
Keytruda Franchise Expands
Keytruda (including Qlex), the company’s blockbuster cancer immunotherapy, generated $8.6 billion in global sales, up 6% year over year, driven by usage in tumors predominantly affecting women, including those with certain cervical and breast cancers, as well as increased use of Keytruda plus Padcev in urothelial cancer.
Merck also saw continued uptake in earlier-stage head and neck cancer.
Keytruda Qlex (more convenient under-the-skin injection) sales reached $830 million.
In prepared remarks, Merck said that the timing of U.S. customer purchases last year created a headwind to growth for Keytruda, but this was largely offset by an increase in channel inventory, which is expected to unwind in the fourth quarter.
Gardasil, Winrevair And Animal Health Deliver Strong Revenue
HPV vaccines Gardasil and Gardasil 9 sales jumped 14% to $1.995 billion, primarily due to higher sales in the U.S. reflecting favorable public-sector purchasing patterns (CDC purchase) and higher net pricing.
Animal Health revenue increased 4% to $1.676 billion, driven by growth across its Livestock and Companion Animal portfolios.
Winrevair, Merck’s pulmonary arterial hypertension treatment, posted sales of $694 million, up 93% from a year earlier.
Merck Boosts Fiscal 2026 Guidance
The U.S. drug giant raised its fiscal 2026 adjusted earnings guidance from $2.66-$2.76 per share to $2.77-$2.82 per share compared to the consensus of $2.65.
The EPS outlook includes one-time charges of $3.62 per share for the acquisition of Cidara, $2.31 per share for the acquisition of Terns, and $0.12 per share related to the global license agreement with SciBrunch.
It boosted its 2026 sales guidance from $66.30 billion-$67.30 billion to $66.80 billion-$67.30 billion versus Wall Street estimate of $67.052 billion.
Merck expects modest top-line growth in 2027.
MRK Price Action: Merck & Co shares were up 5.06% at $148.05 at the time of publication on Thursday, according to Benzinga Pro data.
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