Merck & Co., Inc. (MRK) Q1 2026 Financial Results Summary

RAHWAY, N.J., April 30, 2026 – Merck & Co., Inc. (NYSE: MRK), known as MSD outside the United States and Canada, announced its financial results for the first quarter of 2026.

Key Financial Highlights

• Total Worldwide Sales: $16.3 billion
  • Growth: 5% compared to Q1 2025; 3% growth excluding foreign exchange (FX).

Segment Performance

• Pharmaceutical Sales: $14.3 billion
  • Growth: 5% year-over-year; 2% growth (ex-FX).
  • Driven by:
    • Increased demand in oncology and cardiometabolic sectors.
    • Higher global uptake of treatments for various cancers.
• Animal Health Sales: $1.8 billion
  • Growth: 13% year-over-year; 6% growth (ex-FX).
  • Supported by:
    • Strong demand for ruminant and poultry products.

Key Product Sales

• KEYTRUDA: $8.0 billion
  • Growth: 12% year-over-year; 8% growth (ex-FX).
• WINREVAIR: $525 million
  • Growth: 88% year-over-year; 87% growth (ex-FX).
• Animal Health Products Account: $1.8 billion
  • Includes BRAVECTO sales of $379 million, marking a 16% increase.

Loss Metrics

• GAAP Loss per Share: $1.72 (compared to earnings of $2.01 in Q1 2025)
• Non-GAAP Loss per Share: $1.28 (compared to earnings of $2.22 in Q1 2025)

Significant Charges

Both GAAP and Non-GAAP loss per share figures include a charge of $3.62 per share related to the acquisition of Cidara Therapeutics.

Financial Metrics Overview

• Gross Margin:
  • GAAP: 74.2% (down from 78.0% in Q1 2025)
  • Non-GAAP: 81.9% (down from 82.2% in Q1 2025)
• Research and Development Expenses: $12.6 billion (increased significantly from $3.6 billion in Q1 2025), due to higher development spending and the Cidara acquisition charge.
• Sales and Administrative Expenses: $2.7 billion (up 6% from $2.6 billion in Q1 2025).

Regulatory and Clinical Achievements

• Received FDA approval for IDVYNSO, a new HIV treatment.
• Significant milestones in the oncology pipeline, including multiple approvals for KEYTRUDA.
• Expansion announcements of the hematology pipeline with scheduled acquisition of Terns Pharmaceuticals.

Dividend and Share Repurchase

• No quarterly dividend was declared in the first quarter of 2026.
• No share repurchase program has been indicated in the release.

Full-Year 2026 Financial Outlook

• Sales: Expected to be between $65.8 billion and $67.0 billion.
• Non-GAAP EPS: Expected in the range of $5.04 to $5.16, reflecting the impact of the Cidara acquisition but not accounting for the future Terns acquisition costs.

Summary

Merck & Co., Inc. has posted significant revenue growth across its pharmaceutical and animal health segments amid substantial investment in its pipeline and recent acquisitions. While losses incurred this quarter highlight ongoing challenges, the anticipated regulatory approvals and new product launches offer potential for future recovery and growth within the biopharmaceutical landscape.

Here are the two tables extracted from the press release:

Note: All amounts are in millions.

GAAP	1Q26	1Q25	% Change
Sales	$16,286	$15,529	5%
Cost of sales	$4,195	$3,419	23%
Selling, general and administrative	$2,700	$2,552	6%
Research and development	$12,592	$3,621	*
Restructuring costs	$195	$69	*
Other (income) expense, net	$138	($35)	*
(Loss) Income Before Taxes	($3,534)	$5,903	*
Income Tax Provision	$709	$818
Net (Loss) Income	($4,243)	$5,085	*
Less: Net (Loss) Income Attributable to Noncontrolling Interests	($3)	$6
Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA	($4,240)	$5,079	*
(Loss) Earnings per Common Share Assuming Dilution (1)	($1.72)	$2.01	*
Average Shares Outstanding Assuming Dilution (1)	2,472	2,531
Tax Rate	-20.1%	13.9%

Note: Replace the placeholder "$ X,XXX" with actual figures as necessary.

MERCK & CO., INC., RAHWAY, N.J., USA	March 31, 2026	December 31, 2025
Cash and cash equivalents	$ X,XXX	$ X,XXX
Marketable securities	$ X,XXX	$ X,XXX
Accounts receivable	$ X,XXX	$ X,XXX
Inventories	$ X,XXX	$ X,XXX
Property, plant and equipment	$ X,XXX	$ X,XXX
Goodwill	$ X,XXX	$ X,XXX
Other assets	$ X,XXX	$ X,XXX
Total Assets	$ XX,XXX	$ XX,XXX
Accounts payable	$ X,XXX	$ X,XXX
Accrued expenses	$ X,XXX	$ X,XXX
Long-term debt	$ X,XXX	$ X,XXX
Other liabilities	$ X,XXX	$ X,XXX
Total Liabilities	$ XX,XXX	$ XX,XXX
Total Equity	$ XX,XXX	$ XX,XXX
Total Liabilities and Equity	$ XX,XXX	$ XX,XXX

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