Merck & Co., Inc. (NYSE:MRK) Issues Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Merck & Co., Inc. (NYSE:MRK) released its quarterly earnings results on Thursday. The company reported ($1.28) earnings per share for the quarter, beating the consensus estimate of ($1.47) by $0.19, FiscalAI reports. The business had revenue of $16.29 billion for the quarter, compared to analysts’ expectations of $15.85 billion. Merck & Co., Inc. had a net margin of 13.59% and a return on equity of 26.84%. The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.22 earnings per share. Merck & Co., Inc. updated its FY 2026 guidance to 5.040-5.160 EPS.

Here are the key takeaways from Merck & Co., Inc.’s conference call:

• Merck reported Q1 revenue of $16.3 billion (up 5%) and has narrowed and raised its 2026 non?GAAP guidance to $65.8–$67.0 billion revenue and $5.04–$5.16 EPS, citing continued oncology, Animal Health, and new?product momentum.
• A $9 billion one?time acquisition?related charge for Sedera drove a GAAP pre?tax loss and produced a reported loss of $1.28/share this quarter, including a $3.62/share hit from the charge and an unusual tax rate impact (?43.5%).
• Meaningful pipeline and regulatory progress — FDA approval of the once?daily two?drug HIV regimen Edvinso (doravirine+islatravir), priority review for Ifinatamab deruxtecan in extensive?stage SCLC (PDUFA Oct 10), and upcoming PDUFA dates for Keytruda+Padcev and WELIREG combinations.
• Commercial strength and new launches: Keytruda family sales rose to $8.0 billion (+8%) with KEYTRUDA QLEX early sales of $128 million and permanent J?code, while Animal Health delivered mid?single?digit growth and new product launches (e.g., Numelvy) support long?term growth.
• Proposed acquisition of Terns (TERN?701) targets a high?value hematology opportunity with multibillion upside but will create a near?term headwind — ~$5.8 billion one?time R&D charge (~$2.35/share) and ~?$0.12 EPS drag this year — management frames it as science?led BD to strengthen the pipeline.

Merck & Co., Inc. Stock Performance

Shares of NYSE MRK traded up $3.12 during midday trading on Friday, hitting $112.30. 11,951,905 shares of the stock traded hands, compared to its average volume of 9,163,282. The firm has a 50-day moving average of $117.69 and a two-hundred day moving average of $107.39. The firm has a market capitalization of $277.36 billion, a P/E ratio of 15.43, a PEG ratio of 2.21 and a beta of 0.26. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.30 and a current ratio of 1.54. Merck & Co., Inc. has a one year low of $73.31 and a one year high of $125.14.

Insider Activity

In other news, EVP Richard R. Deluca sold 37,685 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $120.92, for a total transaction of $4,556,870.20. Following the transaction, the executive vice president directly owned 160,174 shares of the company’s stock, valued at $19,368,240.08. This represents a 19.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Caroline Litchfield sold 41,997 shares of the company’s stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $119.61, for a total transaction of $5,023,261.17. Following the sale, the chief financial officer directly owned 90,192 shares of the company’s stock, valued at $10,787,865.12. The trade was a 31.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 320,176 shares of company stock worth $38,281,735. Insiders own 0.17% of the company’s stock.

Institutional Investors Weigh In On Merck & Co., Inc.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sunbeam Capital Management LLC increased its holdings in Merck & Co., Inc. by 1.3% in the 4th quarter. Sunbeam Capital Management LLC now owns 7,099 shares of the company’s stock worth $747,000 after acquiring an additional 94 shares in the last quarter. Rexford Capital Inc. increased its holdings in Merck & Co., Inc. by 1.3% in the 4th quarter. Rexford Capital Inc. now owns 7,799 shares of the company’s stock worth $821,000 after acquiring an additional 100 shares in the last quarter. Wealthspire Retirement LLC increased its holdings in Merck & Co., Inc. by 2.3% in the 4th quarter. Wealthspire Retirement LLC now owns 5,162 shares of the company’s stock worth $543,000 after acquiring an additional 114 shares in the last quarter. Financial Engines Advisors L.L.C. increased its holdings in Merck & Co., Inc. by 1.3% in the 3rd quarter. Financial Engines Advisors L.L.C. now owns 9,783 shares of the company’s stock worth $821,000 after acquiring an additional 125 shares in the last quarter. Finally, Monetary Management Group Inc. increased its holdings in Merck & Co., Inc. by 0.7% in the 2nd quarter. Monetary Management Group Inc. now owns 19,035 shares of the company’s stock worth $1,507,000 after acquiring an additional 125 shares in the last quarter. 76.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MRK. TD Cowen lifted their target price on shares of Merck & Co., Inc. from $100.00 to $120.00 and gave the company a “hold” rating in a research note on Tuesday, January 20th. Citigroup lifted their target price on shares of Merck & Co., Inc. from $120.00 to $125.00 and gave the company a “neutral” rating in a research note on Friday, March 20th. UBS Group lifted their target price on shares of Merck & Co., Inc. from $130.00 to $145.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Cantor Fitzgerald lifted their target price on shares of Merck & Co., Inc. from $116.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $150.00 price target for the company in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $128.18.

Merck & Co., Inc. News Roundup

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

• Positive Sentiment: Q1 results beat expectations — Merck posted revenue and adjusted EPS above Street forecasts with Keytruda and Winrevair driving growth; the beats and upbeat commentary lifted investor sentiment. Merck tops Q1 estimates
• Positive Sentiment: Regulatory approvals & pipeline progress expand addressable markets — Merck won FDA approval for a new 2?drug HIV regimen (IDVYNSO) and EC approval for ENFLONSIA for RSV prevention; the company also dosed the first patient in Phase 3 enpatoran lupus trials, adding long?term growth optionality. Merck expands beyond oncology
• Neutral Sentiment: Analyst action mixed — Wells Fargo trimmed its price target to $145 but kept an Overweight rating, signaling continued confidence despite a modestly lower PT. Wells Fargo lowers PT
• Neutral Sentiment: FY?2026 guidance and outlook — Merck provided EPS guidance of $5.04–$5.16 and a narrowed sales view ($65.8B–$67.0B). Guidance is close to consensus but tighter ranges mean less revenue upside visibility near term. Merck Q1 financial results
• Neutral Sentiment: Sector context — Biotech peers are mixed (Moderna saw vaccine revenue rebound but its stock fell; Organon missed), so some moves reflect broader healthcare rotation rather than Merck?specific news. Moderna Covid vaccine drives growth
• Negative Sentiment: Acquisition-related charge produced a GAAP loss — A Cidara-related charge drove a quarterly GAAP loss, which clouds headline profitability despite the operational beat. Merck posts quarterly loss due to Cidara charge
• Negative Sentiment: Longer-term growth risks flagged — Coverage noted potential future pressure from lost sales on some products (e.g., competitive threats to Keytruda, HPV and diabetes medicines) and Merck said it is working on mitigations. That risk keeps some investors cautious. Merck stock falls after earnings

About Merck & Co., Inc.

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.