Merck beats Q2 estimates, raises 2026 revenue and EPS guidance, discloses tulisokibart SSc-ILD study failed primary endpoint with no safety concerns
| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $64.17B | $60.12B | $59.28B | $48.70B | $41.52B | $39.12B | $42.29B | $40.12B |
| Cost of Revenue | $15.19B | $16.13B | $17.41B | $13.63B | $13.62B | $12.02B | $13.51B | $12.91B |
| Gross Profit | $48.98B | $43.99B | $41.87B | $35.08B | $27.90B | $27.11B | $28.79B | $27.21B |
| Gross Margin | 76.32% | 73.17% | 70.63% | 72.02% | 67.20% | 69.29% | 68.06% | 67.82% |
| Operating Expenses | $28.75B | $41.03B | $23.59B | $21.88B | $22.35B | $19.18B | $19.85B | $20.41B |
| Operating Income | $20.22B | $2.95B | $18.28B | $13.20B | $5.55B | $7.93B | $8.93B | $6.80B |
| Operating Margin | 31.51% | 4.91% | 30.84% | 27.10% | 13.36% | 20.26% | 21.12% | 16.94% |
| Net Income | $17.12B | $365.00M | $14.52B | $13.05B | $7.07B | $9.84B | $6.22B | $2.39B |
| Net Margin | 26.68% | 0.61% | 24.49% | 26.79% | 17.02% | 25.16% | 14.71% | 5.97% |
| EPS (Basic) | $6.76 | $0.14 | $5.73 | $5.16 | $2.79 | $3.84 | $2.40 | $0.95 |
| EBITDA | $25.71B | $6.91B | $21.32B | $17.90B | $10.18B | $11.37B | $13.99B | $11.95B |
| Stock Option Compensation Expense | $761.00M | $645.00M | $541.00M | $479.00M | $441.00M | $417.00M | $348.00M | $312.00M |
| Price To Earnings Ratio | 14.72 | 778.71 | 19.35 | 14.86 | 27.92 | 22.60 | 30.37 | 60.43 |
| Price To Sales Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Shares Outstanding | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Market Capitalization | $251.88B | $284.23B | $280.93B | $193.90B | $197.34B | $222.44B | $188.89B | $144.67B |
| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|
| Cash & Short Term Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Short Term Receivables | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Inventories | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Property, Plant & Equipment | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Investments and Advances | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Note Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Intangible Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Deferred Tax Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Assets | $117.11B | $106.67B | $109.16B | $105.69B | $91.59B | $84.40B | $82.64B | $87.87B |
| Short Term Debt Incl. Current Port. of LT Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Provision for Risks Charges | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Deferred Tax Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $70.73B | $69.04B | $63.10B | $67.44B | $66.18B | $58.40B | $55.76B | $53.30B |
| Non-Equity Reserves | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Preferred Stock - Carrying Value | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Common Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Shareholders Equity | $46.31B | $37.58B | $45.99B | $38.18B | $25.32B | $25.91B | $26.70B | $34.34B |
| Accumulated Minority Interest | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $46.31B | $37.58B | $45.99B | $38.18B | $25.32B | $25.91B | $26.70B | $34.34B |
| Total Liabilities & Stockholders Equity | $117.11B | $106.67B | $109.16B | $105.69B | $91.59B | $84.40B | $82.64B | $87.87B |
| Book Value Per Share | $18.31 | $14.44 | $18.19 | $15.12 | $10.04 | $10.14 | $10.37 | $12.82 |
| Tangible Book Value Per Share | $3.29 | $-0.60 | $1.81 | $-2.35 | $-3.00 | $-2.97 | $-1.73 | $0.78 |
| Full-Time Employees | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price to Book Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 14.62% | 0.34% | 13.30% | 12.35% | 7.72% | 11.66% | 7.53% | 2.72% |
| Return on Equity | 36.96% | 0.97% | 31.57% | 34.17% | 27.91% | 37.99% | 23.30% | 6.97% |
| Return on Invested Capital | 18.97% | 0.71% | 18.53% | 13.90% | 6.03% | 9.42% | 9.67% | 3.49% |
| Quick Ratio | 1.15 | 1.00 | 1.23 | 1.02 | 0.81 | 0.97 | 0.92 | 1.06 |
| Current Ratio | 1.36 | 1.25 | 1.47 | 1.27 | 1.02 | 1.24 | 1.17 | 1.33 |
| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|
| Net Income | $17.12B | $365.00M | $14.52B | $13.05B | $7.07B | $9.84B | $6.22B | $2.39B |
| Depreciation | $4.50B | $3.87B | $3.91B | $3.21B | $3.49B | $3.31B | $4.52B | $4.68B |
| Other Funds (Non Cash) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Funds from Operations | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Extraordinary Item | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Changes in Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Taxes Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Operating Activities | $21.47B | $13.01B | $19.09B | $14.11B | $10.25B | $13.44B | $10.92B | $6.45B |
| Capital Expenditures | $3.37B | $3.86B | $4.39B | $4.45B | $4.68B | $3.47B | $2.62B | $1.89B |
| Net Assets From Acquisitions | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Sale of Fixed Assets and Businesses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Purchase or Sale of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Purchase of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Sale Or Maturity of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Uses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Sources | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Investing Activities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash Dividends Paid | $7.84B | $7.45B | $7.01B | $6.61B | $6.21B | $5.70B | $5.17B | $5.17B |
| Change in Capital Stock | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Repurchase of Common Pref Stock | $1.31B | $1.35B | $0.00 | $840.00M | $1.28B | $4.78B | $9.09B | $4.01B |
| Sale of Common Pref Stock | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Proceeds from Stock Options | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Issuance or Reduction of Debt, Net | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Change in Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Issuance of Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Reduction of Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Financing Active Other Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Financing Activities Uses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Financing Activities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Exchange Rate Effect | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Change in Cash | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | $18.10B | $9.14B | $14.71B | $9.66B | $5.57B | $9.97B | $8.31B | $4.56B |
| Preferred Dividends (Cash Flow) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price to Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Company coverage
Merck & Co., Inc. is a global healthcare leader with operations spanning two core divisions: Pharmaceuticals and Animal Health. The Pharmaceutical segment is dedicated to human health, offering a broad spectrum of medicinal products. These cover crucial therapeutic areas such as oncology, acute hospital care, immunology, neuroscience, virology, cardiovascular conditions, and diabetes. This division also develops vital preventive vaccines for pediatric, adolescent, and adult populations. Meanwhile, the Animal Health segment focuses on the research, development, manufacturing, and marketing of veterinary medications, vaccines, and comprehensive health management solutions for animals. This division further provides innovative digital products designed for animal identification, traceability, and continuous monitoring. Merck's extensive clientele encompasses drug wholesalers, pharmacies, hospitals, and government agencies. It also serves managed healthcare organizations, including health maintenance organizations (HMOs) and pharmacy benefit managers, as well as various other institutional clients. Additionally, the company supplies products to individual physicians and their distributors, veterinarians, and livestock producers. The organization actively engages in strategic collaborations with companies such as AstraZeneca PLC, Bayer AG, Eisai Co., Ltd., Ridgeback Biotherapeutics, and Gilead Sciences, Inc. These partnerships are specifically aimed at the joint development and commercialization of prolonged-acting therapies for HIV. Established in 1891, Merck & Co., Inc. maintains its corporate headquarters in Kenilworth, New Jersey.
Why it moved over time
Merck's Q2 beat on revenue and narrowed-and-raised 2026 sales outlook after $16.6 billion revenue and pipeline/launch gains, signaling stronger near-term growth despite acquisition-related charges.
Key fact: Q2 revenue $16.6 billion and company raised and narrowed its 2026 sales outlook.
zacks.com: MRK Q2 Earnings Call Puts Pipeline Progress in FocusMerck's presentation of Phase III data for a once-weekly oral HIV treatment and plans for a monthly oral PrEP at the International AIDS Conference highlighted a potential $5B market opportunity.
Key fact: Presented Phase III results for a once-weekly oral HIV regimen and outlined a monthly oral PrEP candidate, cited as a ~$5 billion growth opportunity.
seekingalpha.com: Merck & Co., Inc. (MRK) Discusses HIV Program Updates and Phase III Data from International AIDS Conference TranscriptMerck presented Phase III data for a once-weekly oral HIV regimen and a monthly oral PrEP candidate at the International AIDS Conference, offering new clinical readthroughs for a potential $5B growth opportunity.
Key fact: Presented Phase III data for a once-weekly oral HIV regimen and highlighted a monthly oral PrEP as a $5 billion growth opportunity.
seekingalpha.com: Merck & Co., Inc. (MRK) Discusses HIV Program Updates and Phase III Data from International AIDS Conference TranscriptMerck is in focus ahead of its Aug. 4 pre-market Q2 earnings report, as investors weigh consensus revenue and EPS estimates and updates on Keytruda lifecycle extensions and pipeline developments.
Key fact: Merck will report Q2 results Aug. 4 before the open; Zacks consensus sales $16.33 billion and EPS estimate of a $0.26 loss.
defenseworld.net: Merck & Co., Inc. $MRK Shares Bought by Argent Capital Management LLC