Core Insights - Merck (MRK) reported Q2 2025 adjusted EPS of $2.13, exceeding estimates, but a 7% decline year-over-year on a reported basis due to a $200 million upfront payment for a license agreement with Hengrui Pharma [2][9][17] - Revenues decreased 2% year-over-year to $15.81 billion, aligning with consensus estimates [3][9] Sales Performance of Oncology Drugs - Keytruda sales reached $7.96 billion, a 9% increase, driven by strong uptake in various cancer indications, surpassing estimates [4][9] - Alliance revenues from Lynparza and Lenvima contributed positively, with Lynparza sales up 15% to $370 million and Lenvima revenues totaling $265 million, up 5% [5] Sales Performance of Other Key Products - HPV vaccine sales (Gardasil and Gardasil 9) fell 55% to $1.13 billion due to reduced demand in China, missing estimates [7] - Sales of other vaccines showed mixed results, with Vaxneuvance increasing 20% to $229 million, while Rotateq and Pneumovax 23 saw significant declines [8][10] Animal Health Segment - The Animal Health segment generated $1.65 billion in revenues, an 11% increase year-over-year, driven by higher demand and the inclusion of Elanco aqua business sales [12] Cost and Margin Discussion - Adjusted gross margin improved to 82.2%, up 130 basis points year-over-year, attributed to a favorable product mix [13] - Adjusted R&D spending rose 15% to $3.99 billion, influenced by the upfront payment to Hengrui Pharma and increased compensation costs [14] 2025 Guidance - Merck narrowed its 2025 revenue guidance to $64.3-$65.3 billion, reflecting a less negative currency impact [15] - Adjusted EPS guidance is now between $8.87 and $8.97, accounting for a revised negative impact from foreign exchange [16] Acquisition Plans - Merck announced plans to acquire Verona Pharma for approximately $10 billion, expected to close in Q4 2025, which will enhance its portfolio in chronic obstructive pulmonary disease [19]

Merck (MRK) reported $15.81 billion in revenue for the quarter ended June 2025, representing a year-over-year decline of 1.9%. EPS of $2.13 for the same period compares to $2.28 a year ago.The reported revenue represents a surprise of -0.02% over the Zacks Consensus Estimate of $15.81 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +5.97%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their nex ...

Key Takeaways MRK will report Q2 results on July 29. Consensus estimates for sales are at $15.77B and EPS at $1.99.Keytruda, Lynparza and new drugs like Capvaxive are expected to boost Q2 pharmaceutical sales.Weak Gardasil demand in China, generic erosion and pipeline reliance may weigh on investor sentiment.Merck (MRK) will report its second-quarter 2025 earnings on July 29, before market open. The Zacks Consensus Estimate for second-quarter sales and earnings is pegged at $15.77 billion and $1.99 per shar ...

Analysts on Wall Street project that Merck (MRK) will announce quarterly earnings of $1.99 per share in its forthcoming report, representing a decline of 12.7% year over year. Revenues are projected to reach $15.71 billion, declining 2.5% from the same quarter last year.The consensus EPS estimate for the quarter has undergone a downward revision of 1.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during ...