Merck(US:MRK) ZACKS·2026-02-03 17:40Core Insights - Merck (MRK) reported Q4 2025 adjusted EPS of $2.04, exceeding the Zacks Consensus Estimate of $2.03, with a 19% year-over-year increase [1] - Q4 revenues rose 5% year-over-year to $16.40 billion, surpassing the Zacks Consensus Estimate of $16.19 billion [1][10] Sales Performance - Keytruda generated $8.37 billion in Q4 sales, a 5% increase, driven by strong uptake in earlier-stage indications and metastatic indications, beating the Zacks Consensus Estimate of $8.31 billion [3] - Alliance revenues from Lynparza and Lenvima contributed to oncology sales, with Lynparza revenues increasing 4% to $389 million and Lenvima revenues totaling $272 million, up 6% [4] - Welireg recorded sales of $220 million, up 37%, benefiting from higher demand in the U.S. and launch uptake in Europe [5] - HPV vaccine sales (Gardasil and Gardasil 9) fell 35% to $1.03 billion due to lower demand in China and Japan, narrowly missing the Zacks Consensus Estimate of $1.04 billion [6] - Capvaxive, a newly launched pneumococcal vaccine, generated $279 million in sales, while Bridion injection sales reached $499 million, up 11% [7] - Januvia/Janumet franchise sales rose 3% to $501 million, driven by higher net pricing in the U.S. [8] Full-Year Results - Full-year 2025 sales increased 1% to $65.01 billion, surpassing the Zacks Consensus Estimate of $64.80 billion, with pharmaceutical sales also growing 1% to $58.10 billion [12] - Adjusted earnings for 2025 were $8.98 per share, a 17% year-over-year increase, beating the Zacks Consensus Estimate of $8.95 per share [12] 2026 Guidance - Merck's 2026 revenue guidance is projected between $65.5 billion and $67.0 billion, falling short of the Zacks Consensus Estimate of $67.36 billion [13] - Adjusted EPS is expected to be between $5.00 and $5.15, significantly lower than the Zacks Consensus Estimate of $6.20 per share, including a one-time charge of $9 billion related to the acquisition of Cidara Therapeutics [14] - The adjusted gross margin is anticipated to be around 82% [14] Market Reaction - Despite strong Q4 results, investor sentiment was dampened by the weak 2026 guidance, leading to a decline in stock price during pre-market trading [17] - Over the past six months, Merck's shares have increased by 42.4%, outperforming the industry average increase of 26.4% [17] Pipeline and Future Outlook - Merck's late-stage pipeline has nearly tripled in the past three years, positioning the company for several new product launches over the next five years [19] - The company is also pursuing external growth opportunities through mergers and acquisitions to diversify its product lineup [19]