Fourth-Quarter 2025 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA February 3, 2026 Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Question & Answer Session 2 Agenda Agenda Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA This presentation of Merck & Co., ...

Core Insights - Merck reported quarterly earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $2.03 per share, and showing an increase from $1.72 per share a year ago, resulting in an earnings surprise of +0.62% [1] - The company achieved revenues of $16.4 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.33% and up from $15.62 billion year-over-year [2] - Merck's stock has increased by approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The future performance of Merck's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $16.13 billion, and for the current fiscal year, it is $6.20 on revenues of $67.36 billion [7] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for Merck was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Industry Context - The Large Cap Pharmaceuticals industry, to which Merck belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Eli Lilly, is expected to report quarterly earnings of $6.99 per share, reflecting a year-over-year increase of +31.4%, with revenues projected at $17.87 billion, up 32.1% from the previous year [9][10]

Core Viewpoint - Merck's (MRK.US) latest quarterly performance report and future outlook fell short of market expectations, primarily due to challenges faced by its HPV vaccine Gardasil, which is expected to struggle in the Chinese market, overshadowing strong growth from other products like Keytruda and new drugs [1][2]. Financial Performance - In Q4, Merck reported total sales of approximately $16.4 billion, a 5% year-over-year increase, exceeding analyst expectations of about $16.2 billion [2]. - Non-GAAP net profit for the quarter was approximately $5.088 billion, reflecting a 16% year-over-year growth, with adjusted earnings per share at $2.04, slightly above analyst forecasts [2]. - Gardasil's sales in Q4 were approximately $1.03 billion, down about 35% year-over-year, attributed to global economic uncertainties and competitive pressures [3]. Product Challenges - Gardasil is facing significant challenges in both the Chinese market, where demand has sharply declined, and in the U.S., where health officials have recommended reducing vaccination doses [2][3]. - Merck has paused Gardasil shipments to China until the end of 2025, not factoring any shipments in its 2026 guidance [1]. Growth Opportunities - Despite Gardasil's challenges, Merck is experiencing growth in other areas, including a new pneumonia vaccine and the rare disease drug Winrevair, which saw a 133% increase in Q4 sales [4]. - Winrevair achieved sales of approximately $467 million in Q4, exceeding analyst expectations [4]. Strategic Initiatives - Merck is preparing for potential price reductions and competition for its top-selling cancer drug Keytruda, which faces patent expiration in 2028 [5][6]. - The company is actively seeking significant acquisition opportunities, with CEO Robert Davis indicating a focus on strategic acquisitions to bolster its drug pipeline [6][8]. Future Outlook - Merck's management is prioritizing oncology treatment innovations and plans to diversify its cancer product line beyond Keytruda [8][9]. - The company is exploring new mechanisms in immunotherapy and potential acquisitions in chronic disease treatments, particularly in COPD and metabolic disorders [9].

Group 1: Merck & Co. - Merck's Q4 worldwide sales increased by 5% to $16.4 billion, with a full-year revenue exceeding $65 billion, driven primarily by oncology sales [2] - Keytruda, a major oncology drug, saw sales rise by 7% to nearly $32 billion, constituting almost half of Merck's total annual revenue [2] - New therapies are contributing to sales growth, with Winrevair generating $1.4 billion and Capvaxix bringing in just under $800 million in their first year [3] - Merck's guidance for 2026 revenue is around $66 billion, indicating a flat outlook compared to the current year [3] Group 2: Pfizer - Pfizer's full-year 2025 revenue decreased by 2% to approximately $63 billion, but oncology drugs like Padcev and Lorbrena showed growth [4] - Adjusted EPS for Pfizer rose by 4% to $3.22, supported by expanded margins and stable costs [4] - For 2026, Pfizer forecasts revenue between $59.5 billion and $62.5 billion, with adjusted EPS expected to be between $2.80 and $3.00 [5] - Pfizer's management is optimistic about a busy pipeline with around 20 pivotal study starts planned for the year, aiming to restore growth despite ongoing challenges from patent expirations and pricing pressures [5]

Merck & Co., Inc. (NYSE:MRK) is one of the stocks on Jim Cramer’s recent game plan. Cramer noted that he likes the stock, as he said: Merck has a lot to talk about, namely, some real wins from its bountiful acquisition spree. I like the stock. A little too heavy on Keytruda right now, but I think it can spread out the wealth. Photo by Adam Nowakowski on Unsplash Merck & Co., Inc. (NYSE:MRK) is a healthcare company that provides a wide range of human and veterinary pharmaceuticals, vaccines, and health ...

Merck closed the fourth quarter with earnings and revenue ahead of Wall Street estimates, supported by strong demand for its blockbuster cancer drug Keytruda and accelerating sales from newer medicine... ...

Core Viewpoint - Merck's stock has declined due to full-year revenue and profit forecasts falling short of market expectations [1] Group 1: Financial Performance - The company's full-year revenue outlook is below expectations, indicating potential challenges in meeting market demands [1] - Profit forecasts for the year also did not meet analyst predictions, contributing to the stock decline [1] Group 2: Market Reaction - Following the announcement of the disappointing outlook, Merck's stock experienced a notable drop, reflecting investor concerns [1]

格隆汇2月3日｜默沙东(MRK.US)盘前跌2.5%。消息面上，默沙东预计2026年销售额为655亿至670亿美 元，市场预计为675亿美元。 ...

While reporting financial results for the fourth quarter on Tuesday, biopharmaceutical company Merck & Co., Inc. (MRK), known as MSD outside the U.S. and Canada, initiated its adjusted earnings and net sales guidance for the full-year 2026.For fiscal 2026, Merck now projects adjusted earnings in a range of $5.00 to $5.15 per share on sales between $65.5 billion and $67.0 billion.On average, analysts polled expect the company to report earnings of $5.63 per share on sales of $67.58 billion for the year. Ana ...

Core Viewpoint - Merck anticipates a decline in earnings for 2026 due to the acquisition of Cidara Therapeutics [1] Group 1 - The acquisition of Cidara Therapeutics is expected to impact Merck's financial performance negatively in 2026 [1]