Merck (MRK) Q3 Earnings and Revenues Beat Estimates

Core Insights - Merck reported quarterly earnings of $2.58 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and showing a significant increase from $1.57 per share a year ago, resulting in an earnings surprise of +9.32% [1] - The company achieved revenues of $17.28 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.24% and up from $16.66 billion year-over-year [2] - Merck has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The sustainability of Merck's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.18 on revenues of $16.35 billion, and for the current fiscal year, it is $8.92 on revenues of $64.76 billion [7] Industry Context - The Large Cap Pharmaceuticals industry, to which Merck belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Merck's stock performance [5] Stock Performance - Merck shares have underperformed the market, losing about 13% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The estimate revisions trend for Merck was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [6]