Merck announced on Thursday first-quarter figures that exceeded projections due to strong interest in its cancer treatment Keytruda and several recent products.
The pharmaceutical leader also refined its sales forecast for 2026 and increased its adjusted profit projections, partly owing to favorable core business performance and currency benefits.
Merck expects its revenue for 2026 to fall between $65.8 billion and $67 billion, tightening the lower end of the range from $65.5 billion. The company anticipates adjusted earnings to range from $5.04 to $5.16 per share, an increase from the prior forecast of $5 to $5.15 per share.
Merck experienced a quarterly loss; however, it attributed a $3.62 per share charge to its acquisition of Cidara Therapeutics, a biotech firm focused on a flu preventive medication.
Merck has engaged in a series of acquisitions to counter the generic competition expected for several medications, including Type 2 diabetes medications Januvia and Janumet later this year, and Keytruda in 2028.
The following compares the first-quarter results released by Merck with analyst expectations compiled by LSEG:
- Adjusted loss per share: $1.28 versus $1.51 anticipated
- Revenue: $16.29 billion versus $15.82 billion expected
The company recorded a net loss of $4.24 billion, or $1.72 per share, for the quarter, in contrast to a net income of $5.08 billion, or $2.01 per share, for the same period last year.
When excluding acquisition and restructuring expenses, Merck reported a first-quarter loss of $1.28 per share.
Merck generated $16.29 billion in revenue for the quarter, reflecting a 5% increase compared to the same period last year.
Keytruda, Winrevair surpass projections
Merck’s pharmaceutical division, which produces a variety of medications, achieved $14.35 billion in revenue in the first quarter, a 5% rise compared to the previous year’s similar timeframe.
Sales for Keytruda exceeded $8.03 billion for the quarter, marking a 12% increase from the same quarter last year. Analysts had forecast revenue of $7.78 billion, as per StreetAccount estimates.
The growth in Keytruda sales was partially driven by increased utilization for early-stage cancers and robust demand for treating metastatic cancers, according to the company.
The newly approved injectable version of Keytruda contributed $128 million in sales during the first quarter. This formulation is crucial for Merck’s strategy to mitigate potential revenue decreases once the original intravenous formulation loses its patent protection.
Additionally, Merck’s new drug Winrevair, utilized for treating a rare and severe lung condition, recorded $525 million in sales for the quarter, reflecting an 88% surge from the same quarter a year ago.
Analysts had anticipated the drug would yield $487 million, according to StreetAccount estimates.
This drug’s growth, which launched in mid-2024, is attributed to increasing adoption in the U.S. along with its early entry into select international markets.
Merck has continued to face challenges with sales of Gardasil, a vaccine aimed at preventing HPV-related cancers, the most prevalent sexually transmitted infection in the U.S.
In February last year, Merck disclosed plans to suspend shipments of Gardasil to China starting that month. For the first quarter of 2026, the company noted continued weak demand for the vaccine in China, alongside reduced sales in Japan and the U.S., partially due to “unfavorable public-sector purchasing trends.”
Gardasil achieved sales of $1.07 billion for the quarter, down 19% compared to the same quarter last year. Nonetheless, this figure exceeded the $1.05 billion analysts had projected, as per StreetAccount.
Merck’s animal health sector, offering vaccines and treatments for pets and livestock, reported nearly $1.79 billion in sales, marking a 13% increase from the same period a year prior. The company indicated this reflects heightened demand for products aimed at livestock and companion animals.
