Merck Shares Rise After Q4 Revenue Beat Despite Weak 2026 Outlook

Core Viewpoint - Merck & Co., Inc. reported fourth-quarter results that met earnings expectations and slightly exceeded revenue forecasts, leading to a more than 2% increase in share price intraday [1] Group 1: Financial Performance - The company posted adjusted earnings per share of $2.04, aligning with analyst estimates [1] - Revenue increased by 5% year over year to $16.4 billion, surpassing the consensus estimate of $16.18 billion [1] Group 2: Growth Drivers - Growth was primarily driven by strong performance in oncology and animal health, along with contributions from newer products [2] - KEYTRUDA sales rose by 7% to $8.37 billion during the quarter [2] - Animal health revenue increased by 8% to $1.51 billion, supported by robust livestock demand [2] Group 3: Future Outlook - The 2026 outlook disappointed investors, with earnings forecasted at $5.00 to $5.15 per share, below analyst expectations of $5.63 [3] - A one-time charge of approximately $3.65 per share related to the acquisition of Cidara Therapeutics impacted the earnings forecast [3] - Revenue for 2026 is projected at $65.5 billion to $67.0 billion, slightly below the consensus of $67.58 billion [3] Group 4: Full-Year Sales - For the full year 2025, Merck reported worldwide sales of $65.0 billion, representing 1% growth, or 2% growth excluding foreign exchange [4] - KEYTRUDA generated $31.7 billion in annual sales [4] - Newer products WINREVAIR and CAPVAXIVE contributed $1.4 billion and $759 million, respectively [4]