What is Erste Group Bank’s Forecast for MRK FY2026 Earnings?

Merck & Co., Inc. (NYSE:MRK) – Research analysts at Erste Group Bank lowered their FY2026 earnings per share (EPS) estimates for Merck & Co., Inc. in a research note issued to investors on Wednesday, February 18th. Erste Group Bank analyst H. Engel now expects that the company will earn $5.13 per share for the year, down from their prior forecast of $5.14. The consensus estimate for Merck & Co., Inc.’s current full-year earnings is $9.01 per share. Erste Group Bank also issued estimates for Merck & Co., Inc.’s FY2027 earnings at $9.76 EPS.

A number of other equities research analysts also recently commented on the company. Wall Street Zen downgraded Merck & Co., Inc. from a “strong-buy” rating to a “buy” rating in a research report on Sunday, February 8th. Deutsche Bank Aktiengesellschaft raised Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $150.00 price objective on the stock in a research note on Friday, February 13th. BMO Capital Markets upgraded Merck & Co., Inc. from a “market perform” rating to an “outperform” rating and increased their target price for the company from $82.00 to $130.00 in a research report on Thursday, December 18th. Guggenheim boosted their price target on shares of Merck & Co., Inc. from $122.00 to $140.00 and gave the stock a “buy” rating in a research report on Friday, February 6th. Finally, Citigroup upped their price target on shares of Merck & Co., Inc. from $115.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $124.80.

Merck & Co., Inc. Stock Up 1.1%

MRK opened at $123.63 on Monday. The firm has a 50-day simple moving average of $111.13 and a two-hundred day simple moving average of $96.33. Merck & Co., Inc. has a 52 week low of $73.31 and a 52 week high of $124.19. The company has a market capitalization of $306.84 billion, a PE ratio of 16.98, a price-to-earnings-growth ratio of 2.37 and a beta of 0.28. The company has a quick ratio of 1.44, a current ratio of 1.66 and a debt-to-equity ratio of 0.77.

Merck & Co., Inc. (NYSE:MRK) last issued its earnings results on Tuesday, February 3rd. The company reported $2.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.01 by $0.03. Merck & Co., Inc. had a return on equity of 45.22% and a net margin of 28.08%.The company had revenue of $16.40 billion for the quarter, compared to the consensus estimate of $16.19 billion. During the same quarter last year, the company earned $1.72 EPS. The firm’s quarterly revenue was up 5.0% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Norges Bank purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter valued at $3,997,933,000. DLD Asset Management LP bought a new stake in Merck & Co., Inc. during the 2nd quarter valued at about $2,889,340,000. Wellington Management Group LLP boosted its position in Merck & Co., Inc. by 14.8% in the 4th quarter. Wellington Management Group LLP now owns 86,435,458 shares of the company’s stock valued at $9,098,196,000 after buying an additional 11,156,354 shares during the period. Cardano Risk Management B.V. purchased a new stake in Merck & Co., Inc. in the 4th quarter valued at about $1,012,530,000. Finally, Jennison Associates LLC bought a new position in Merck & Co., Inc. in the 4th quarter worth about $585,192,000. Institutional investors own 76.07% of the company’s stock.

Insider Buying and Selling at Merck & Co., Inc.

In other news, CEO Robert M. Davis sold 47,434 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $118.04, for a total value of $5,599,109.36. Following the sale, the chief executive officer owned 443,602 shares of the company’s stock, valued at approximately $52,362,780.08. This represents a 9.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Jennifer Zachary sold 121,573 shares of Merck & Co., Inc. stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $119.15, for a total transaction of $14,485,422.95. Following the transaction, the executive vice president directly owned 68,916 shares of the company’s stock, valued at approximately $8,211,341.40. This represents a 63.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 320,176 shares of company stock valued at $38,281,735. Insiders own 0.09% of the company’s stock.

Merck & Co., Inc. Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Monday, March 16th will be paid a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Monday, March 16th. Merck & Co., Inc.’s payout ratio is presently 46.70%.

Key Headlines Impacting Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Positive Phase?3 data for ENFLONSIA (RSV) expand the drug’s market potential — results showed protection in high?risk infants into a second RSV season, which could meaningfully lift long?term revenue beyond current approvals. Merck RSV And KEYTRUDA Updates Refocus Attention On Valuation And Growth
• Positive Sentiment: Regulatory wins for Keytruda — new subcutaneous formulation and additional indications — improve maintainability of the franchise and could blunt some revenue erosion when competition arrives. Merck RSV And KEYTRUDA Updates Refocus Attention On Valuation And Growth
• Positive Sentiment: Analyst interest and constructive ratings (average “Moderate Buy”; new coverage from Barclays) support the equity case and provide a baseline of sell?side support as Merck executes the transition. Merck & Co., Inc. (NYSE:MRK) Receives Average Recommendation of “Moderate Buy” from Analysts
• Neutral Sentiment: Merck confirmed an operational split of Human Health into two divisions — a standalone cancer (oncology) business and a separate non?cancer products unit — intended to sharpen launches and portfolio execution. This is an organizational/strategy move rather than an immediate financial shock. Merck Evolves Human Health Operating Structure to Support Portfolio Execution
• Neutral Sentiment: Market reaction so far has been muted — some outlets report investors “shrugged” at the reorganization, suggesting the move was largely expected and already partially priced in. Merck reportedly ready to the splits as Keytruda patent cliff looms. Market shrugs
• Negative Sentiment: The core risk remains Keytruda’s loss of exclusivity (patent expiry around 2028) — the split is explicitly positioned to offset expected sales pressure and biosimilar competition, which could materially reduce pembrolizumab revenue in coming years. Investors need to watch the pace of biosimilar entry, upcoming launch execution for pipeline assets, and how the company allocates capital between the two units. Merck to create separate cancer business to offset Keytruda patent loss, WSJ reports

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.