Merck & Co. Inc. (NYSE:MRK) stock edged higher Tuesday after the drugmaker reported second-quarter results that topped Wall Street revenue expectations and posted a smaller-than-expected adjusted loss, while raising its full-year sales guidance despite recording multibillion-dollar acquisition-related charges.
Merck Revenue Tops Estimates Despite Acquisition Charges
The company reported an adjusted loss of 13 cents per share, narrower than analysts’ expected loss of 27 cents. Results included a $2.31-per-share charge related to the Terns acquisition.
Revenue increased 5% year over year to $16.61 billion, beating the consensus estimate of $16.36 billion.
“We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches,” Chairman and CEO Robert Davis said.
Key Drugs Drive Pharmaceutical Growth
The pharmaceutical segment generated $14.76 billion in revenue, up 5% from a year earlier, led by growth in oncology and cardiometabolic and respiratory products, partly offset by weaker diabetes sales.
Keytruda, the company’s blockbuster cancer immunotherapy, generated $8.37 billion in global sales, up 5% year over year. Keytruda Qlex contributed an additional $463 million.
Animal Health revenue increased 8% to $1.77 billion, driven by growth across its Livestock and Companion Animal portfolios.
Sales of HPV vaccines Gardasil and Gardasil 9 rose 4% to $1.17 billion, supported by stronger demand in Asia-Pacific and Europe and favorable tender timing in Europe, partly offset by softer demand in certain international markets.
Winrevair, Merck’s pulmonary arterial hypertension treatment, posted sales of $588 million, up 75% from a year earlier.
Merck Raises Revenue Outlook, Cuts EPS Guidance
Merck lowered its fiscal 2026 adjusted earnings guidance to $2.66 to $2.76 per share from $5.04 to $5.16, compared with the analyst consensus estimate of $2.76 per share.
The outlook includes one-time charges of $3.62 per share related to the acquisition of Cidara Therapeutics and $2.31 per share related to the acquisition of Terns.
The company raised its fiscal 2026 revenue outlook to $66.3 billion to $67.3 billion from $65.8 billion to $67.0 billion, compared with the consensus estimate of $66.802 billion.
MRK Price Action: Merck shares were up 0.95% at $128.97 at the time of publication on Tuesday, according to Benzinga Pro data.
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