Merck & Co. reports Q4 2025 earnings on Tuesday, Feb. 3, 2026, before market open. Wall Street expects earnings of $2.01 per share on revenue of $16.12 billion, representing 3.1% year-over-year growth. Shares have gained 13% over the past year, outperforming the healthcare sector's broader returns. Here's what investors should watch for. This infographic outlines Wall Street's expectations for MRK's Q4 2025 earnings report on February 3, 2026, alongside analyst price targets and historical beat rates. The N ...

Group 1 - Abbott Laboratories (NYSE:ABT) is recognized as one of the top 12 Medical Devices stocks favored by Hedge Funds [1] - Larry Biegelsen from Wells Fargo maintained an Overweight rating on Abbott Laboratories but reduced the target price from $146 to $122, indicating a 15% upside potential from the current stock level [1] - Joanne Wuensch from Citi also reiterated a Buy rating for Abbott Laboratories, lowering the target price from $155 to $140, emphasizing the need for improved results for the stock to regain momentum [3] Group 2 - Abbott Laboratories operates in the healthcare sector, focusing on discovering, developing, and marketing healthcare products globally, with four main segments: Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products [4] - The company faced transitory headwinds that led to missing consensus sales estimates for the fourth quarter, with management projecting 6.5%-7.5% organic sales growth for 2026, which is below prior consensus [2]

Core Viewpoint - Regeneron Pharmaceuticals is showing potential for business development deals following a strong fourth-quarter report, as indicated by RBC Capital Markets analyst Brian Abrahams [1] Group 1: Financial Performance - Regeneron stock experienced volatility after the market opened, reflecting investor reactions to its fourth-quarter performance [1] - The company's press release was noted to be "more direct" regarding business development opportunities compared to previous communications [1] Group 2: Market Position and Analyst Insights - Analyst Brian Abrahams suggested that Regeneron could actively seek deals in the upcoming year, indicating a strategic shift in its approach to business development [1] - The stock's relative strength rating has risen to 82, showcasing improved market performance [1]

Core Viewpoint - Merck is expected to report its Q4 and full-year 2025 earnings on February 3, with a consensus estimate of $16.19 billion in sales and $2.04 per share in earnings, but earnings estimates for 2026 have declined significantly due to costs from recent M&A activities [1][7][34] Financial Performance - Merck has consistently exceeded earnings expectations in the past four quarters, with an average earnings surprise of 5.08% and a notable 9.32% surprise in the last quarter [3][34] - The company currently has an Earnings ESP of +0.33% and a Zacks Rank of 4 (Sell) [4] Factors Influencing Upcoming Results - Q4 growth is anticipated from Keytruda, Animal Health, and new drugs, although this may be offset by weaker performance from Gardasil and M&A-related costs [7][34] - Keytruda sales are projected to reach $8.31 billion, driven by strong uptake in early-stage indications and metastatic indications [9][34] - The HPV vaccine Gardasil is expected to see lower sales, particularly in China and Japan, with estimates at $1.04 billion [13][34] - The Animal Health segment is estimated to generate $1.48 billion, with mixed performance in livestock and companion animal products [17][34] Strategic Initiatives - Merck has been active in acquisitions, including Cidara Therapeutics for $9.2 billion and Verona Pharma for around $10 billion, aimed at bolstering its pipeline ahead of Keytruda's patent expiration in 2028 [28][30] - The company is positioned to launch approximately 20 new vaccines and drugs in the coming years, with several having blockbuster potential [27][34] Market Position and Valuation - Merck's stock has increased by 9.4% over the past year, underperforming the industry average of 16.1% [20][34] - The company's shares trade at a forward P/E ratio of 15.62, lower than the industry average of 18.18, but above its five-year mean of 12.48 [23][34] Investment Considerations - While Keytruda remains a significant revenue driver, there are concerns about Merck's reliance on this drug and its ability to diversify its product lineup [31][34] - Short-term investors may be cautious due to challenges such as Gardasil's performance, potential competition for Keytruda, and rising pressures from generics [34]

Group 1 - Sanofi reported adjusted earnings of 91 cents per share on $13.5 billion in fourth-quarter sales, exceeding analysts' expectations of 84 cents per share and $13.57 billion in sales [1][1][1] - The company's earnings per share increased from 68 cents in the same period last year, while sales rose from $11.89 billion [1][1][1] Group 2 - Sanofi's stock experienced a slight increase following the earnings report, indicating a positive market reaction to the results [1][1][1]

Core Viewpoint - Merck (MRK) is expected to report quarterly earnings of $2.04 per share, an 18.6% increase year-over-year, with revenues projected at $16.19 billion, reflecting a 3.6% increase compared to the same period last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 85.2%, indicating a significant reassessment by analysts [2]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Key Metrics Projections - Analysts estimate 'Sales- Vaccines- Vaxneuvance' at $178.52 million, a 10.9% increase year-over-year [5]. - 'Sales- Oncology- Keytruda' is projected to reach $8.31 billion, reflecting a 6.1% increase from the previous year [5]. - 'Sales- Oncology- Alliance revenue- Lenvima' is expected to be $243.71 million, indicating a 4.4% decrease year-over-year [5]. Additional Sales Estimates - 'Sales- Vaccines- Gardasil' is projected at $1.04 billion, showing a significant decline of 32.9% year-over-year [6]. - 'Sales- Hospital Acute Care- Bridion - U.S.' is expected to reach $418.39 million, a 9.5% increase year-over-year [6]. - 'Sales- Oncology- Keytruda - International' is estimated at $3.39 billion, reflecting a 13.3% increase year-over-year [6]. Further Sales Insights - 'Sales- Diabetes- Janumet - U.S.' is forecasted at $69.57 million, a decrease of 23.6% year-over-year [7]. - 'Sales- Oncology- Alliance revenue- Lynparza - U.S.' is expected to be $176.62 million, showing a slight decrease of 0.2% [7]. - 'Sales- Oncology- Alliance revenue- Lynparza - International' is projected at $211.75 million, indicating a 13.2% increase year-over-year [8]. Market Performance - Merck shares have recorded a return of +1.6% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [9]. - Based on its Zacks Rank 4 (Sell), Merck is expected to underperform the overall market in the upcoming period [10].

Core Insights - Merck is set to report its Q4 and full-year 2025 results on February 3, with a focus on the sales performance of its cancer drug Keytruda, which accounted for over 50% of pharmaceutical sales in the first nine months of 2025 [2][11] - Keytruda's sales increased by 8% year over year in Q3 2025, but were below expectations, prompting attention on Merck's non-oncology drugs, particularly Capvaxive and Winrevair, which are expected to drive long-term growth [3][5] Sales Performance - Keytruda's sales performance is critical, with a noted increase of 8% year over year in Q3 2025, but weaker than anticipated [3] - Capvaxive and Winrevair have shown strong sales, with Capvaxive generating $480 million and Winrevair $976 million in the first nine months of 2025 [5][11] - The Animal Health business is also contributing to top-line growth, with expected revenue increases in Q4 [6] Product Approvals and Market Competition - Capvaxive was approved in the U.S. in June 2024 and in the EU in March 2025, while Winrevair was approved for PAH treatment in 2024 [4] - Enflonsia, a new RSV antibody, recorded sales of $79 million in Q3 2025, with its performance in Q4 still uncertain as it moves into broader clinical use [7] - Winrevair faces competition in the PAH market from United Therapeutics and Johnson & Johnson, while Enflonsia competes with AstraZeneca/Sanofi's Beyfortus [8][10] Financial Performance and Valuation - Merck's shares have increased by 30.6% over the past six months, outperforming the industry and the S&P 500 [13] - The company's price/earnings ratio stands at 15.61, which is lower than the industry average of 18.36 but higher than its 5-year mean of 12.48 [14] - The Zacks Consensus Estimate for 2025 earnings per share has slightly decreased from $8.98 to $8.95, and for 2026 from $8.81 to $6.94 over the past 60 days [15]

Core Insights - Merck's stock surged by 41% over the last six months, driven by modest revenue growth, significant profit increases, and heightened investor confidence [2][4]. Financial Performance - Revenue increased by 0.5%, while net margin rose by 8.6%, contributing to the stock's performance [4]. - The P/E multiple saw a significant increase of 27%, indicating improved investor sentiment [4]. Key Developments - Strong Q3 2025 earnings results included a 10% growth for Keytruda, exceeding expectations and prompting an increase in FY25 guidance [9]. - The FDA approved Keytruda QLEX (SC) for solid tumors, enhancing treatment convenience [9]. - Positive Phase 3 results for Enlicitide, an oral PCSK9 inhibitor, were announced, indicating potential for future growth [9]. - Merck raised its future revenue projections to $70 billion by the mid-2030s, reflecting optimism about new growth drivers [9]. - Encouraging long-term data for a personalized cancer vaccine with Keytruda in melanoma was reported, further supporting the growth narrative [9].

RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, announced today that the Board of Directors has declared a quarterly dividend of $0.85 per share of the company's common stock for the second quarter of 2026. Payment will be made on April 7, 2026, to shareholders of record at the close of business on March 16, 2026. About Merck At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-e ...

Core Viewpoint - Revolution Medicines Inc. experienced a significant decline in stock price following the cancellation of acquisition talks by Merck, which was seeking to acquire the company for $28 billion to $32 billion [2][4]. Group 1: Stock Performance - Revolution Medicines' stock fell by 16.91% to close at $97.78 after investors reacted to the news of Merck's withdrawal from acquisition negotiations [1]. - The company was highlighted as one of the worst performers in the market on that day [1]. Group 2: Acquisition Talks - Merck terminated discussions with Revolution Medicines due to disagreements over company valuation [2]. - The proposed acquisition was valued between $28 billion and $32 billion [2]. Group 3: Product Development - Revolution Medicines is advancing a pipeline of experimental medicines targeting RAS, which is crucial in treating difficult cancers [2]. - The company received a breakthrough designation from the FDA for its RAS(ON) G12D-selective inhibitor, zoldonrasib, aimed at treating specific lung cancer patients [3]. - Clinical trial results for zoldonrasib have shown a robust clinical profile, including promising antitumor activity and acceptable safety [4].