Merck & Co., Inc. (NYSE:MRK) on Tuesday reported its fourth-quarter adjusted earnings per share of $2.04, surpassing consensus estimates of $2.01, a jump from $1.72 a year ago.
Merck reported sales of $16.40 billion, a 5% increase year-over-year, and exceeded the analysts' projections of $16.19 billion.
Segment And Drug Performance
The pharmaceutical segment recorded $14.84 billion in sales, up 6% year over year, driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in vaccines.
The Animal Health segment's revenue of $1.51 billion increased 8% year-over-year, primarily due to higher demand for livestock products.
Keytruda, an immunotherapy for cancer, generated $8.37 billion in global sales, representing a 7% year-over-year increase. Growth driven by strong global uptake in earlier-stage indications, as well as continued global demand in metastatic indications.
GARDASIL and GARDASIL 9, vaccines to prevent HPV-related diseases, generated $1.03 billion in sales, down 34% compared to last year. Decline primarily due to lower demand in China, as well as lower sales in Japan following the national catch-up immunization program.
The diabetes franchise, led by JANUVIA and JANUMET, increased 3% to $501 million.
Newer products, including Winrevair sales, a therapy for pulmonary arterial hypertension (a rare heart-lung condition), more than doubled to $467 million.
"The transformation of our portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as we continue to execute on our strategy. Our progress positions us to continue delivering on our purpose for patients and creating durable value for shareholders," said Robert Davis, chairman and CEO.
2026 Outlook
Merck issued its fiscal 2026 adjusted earnings guidance of $5.00-$5.15 compared to the Wall Street estimate of $5.38.
The U.S. drug giant expects 2026 sales between $65.50 billion and $67 billion, compared to the consensus estimate of $67.59 billion.
MRK Price Action: Merck & Co shares were up 2.26% at $115.93 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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