Merck & Co. Inc. (NYSE:MRK) on Thursday reported its first-quarter 2026 financial results, which highlighted sales growth driven by continued strength in oncology and animal health.

Merck Q1 Earnings Key Takeaways

Merck reported a first-quarter adjusted loss of $1.28, better than the analyst expectation of a loss of $1.51, down from earnings of $2.22 per share a year ago due to a charge for the acquisition of Cidara Therapeutics of $3.62 per share.

Sales rose 5% to $16.29 billion, beating the consensus of $15.82 billion.

Pharmaceutical Segment Growth Led By Oncology

The pharmaceutical segment recorded $14.35 billion in sales, up 5% year over year, driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by declines in vaccines, diabetes, and infectious diseases.

The Animal Health segment’s revenue of $1.79 billion increased 13% year-over-year, attributable to performance in both Livestock and Companion Animal product portfolios.

Keytruda, an immunotherapy for cancer, generated $8.03 billion in global sales, representing a 12% year-over-year increase.

Gardasil Sales Decline Weighs On Vaccine Segment

GARDASIL and GARDASIL 9, vaccines to prevent HPV-related diseases, generated $1.07 billion in sales, down 19% 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.

Decline also reflects lower sales in the U.S., primarily due to unfavorable public-sector purchasing patterns, partially offset by higher net pricing.

Newer products, including Winrevair sales, a therapy for pulmonary arterial hypertension (a rare heart-lung condition), increased 88% to $525 million, reflecting continued uptake in the U.S. and early launch uptake in certain international markets, particularly in Japan and Europe.

Merck Raises 2026 Guidance

Merck raised its fiscal 2026 adjusted earnings guidance from $5.00-$5.15 per share to $5.04-$5.16, compared to the consensus of $5.11.

The U.S. drug giant also raised 2026 sales guidance from $65.5 billion-$67 billion to $65.80 billion-$67 billion versus the consensus of $66.61 billion.

MRK Technical Analysis: Trend, Momentum And Key Levels

Merck is currently trading within its 52-week range, with a high of $125.14 and a low of $73.31, indicating it is positioned closer to its mid-range.

The stock is trading 5.7% below its 20-day simple moving average (SMA) and 6.4% below its 50-day SMA, suggesting short-term weakness as it struggles to maintain upward momentum.

The relative strength index (RSI) is at 37.08, which indicates neutral momentum, suggesting the stock is neither overbought nor oversold at this time.

Additionally, the moving average convergence divergence (MACD) is below the signal line, which leans toward bearish momentum, indicating potential selling pressure.

  • Key Resistance: $124.00 — This level may act as a barrier for upward movement.
  • Key Support: $106.00 — This level could provide a cushion against further declines.

MRK Price Action: Merck & Co shares were down 0.17% at $110.76 at the time of publication on Thursday, according to Benzinga Pro data.

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