Merck & Co., Inc. (MRK) Q3 2025 Financial Results Summary
RAHWAY, N.J., Oct. 30, 2025 – Merck & Co., Inc., (NYSE: MRK), known as MSD outside the United States and Canada, today announced its financial results for the third quarter of 2025. Below is a summary of key highlights from the report:
Financial Summary
- Total Sales: $17.3 billion, an increase of 4% from Q3 2024; excluding foreign exchange impact, sales increased by 3%.
- GAAP Net Income: $5.8 billion, representing an increase of 83% year-over-year; adjusted for key items, non-GAAP net income was $6.4 billion, up 62%.
- GAAP EPS: $2.32, up 87% from $1.24 in Q3 2024; non-GAAP EPS was $2.58, marking a 64% increase from $1.57.
Product Performance
- KEYTRUDA Sales: Grew by 10% to $8.1 billion; excluding foreign currency effects, sales increased by 8%.
- WINREVAIR Sales: Increased by 141% to $360 million, with the same growth rate excluding foreign exchange effects.
- CAPVAXIVE Sales: $244 million after its launch, noting impressive uptake.
- GARDASIL Sales: Declined by 24% to $1.7 billion; a 25% decline when adjusted for exchange rates.
- Animal Health Sales: Increased by 9% to $1.6 billion; forward-looking excludes currency impacts, showing 7% growth.
Significant Milestones
- Received FDA approval for KEYTRUDA QLEX Injection for subcutaneous use across all solid tumor indications.
- Introduced new research showcasing advancements in more than 20 types of cancer at the ESMO Congress 2025.
- Completed acquisition of Verona Pharma, integrating first-in-class COPD treatment OHTUVAYRE.
Expenses and Other Details
- Cost of Sales: Decreased by 6% compared to Q3 2024, totaling $3.9 billion.
- SG&A Expenses: Fell by 4% to $2.6 billion.
- R&D Expenses: Decreased by 28% to $4.2 billion; mainly due to lower business development costs compared to the previous year.
Tax Rate and Other Metrics
- Effective tax rate: 14.2% in Q3 2025, compared to 22.7% in Q3 2024.
Full-Year Outlook
- Projected Worldwide Sales: Updated estimate range between $64.5 billion and $65.0 billion.
- Non-GAAP EPS Forecast: Revised to between $8.93 and $8.98.
Dividend and Share Repurchase
- The report did not specify any declaration of a quarterly dividend or share repurchase during this quarter.
Key Takeaways
- GAAP vs. Non-GAAP: The difference in earnings reveals management’s focused investment approach and effective operational adjustments despite charges related to acquisitions and restructuring.
- Product Strategies: Continued growth in oncology and vaccines showcases successful product portfolios, with specific emphasis on ongoing pipeline innovations.
- Investment in R&D: Ongoing commitment to R&D meant a significant allocation to pipeline developments, including notable advancements in treatment options for various diseases.
Merck & Co., Inc. remains steadfast in pursuing innovative treatments and reinforcing its commitment to global health through strategic investments and expansion into new therapeutic areas.
MERCK & CO., INC., RAHWAY, N.J., USA CONSOLIDATED STATEMENT OF INCOME – GAAP
(Amounts in millions, except per share figures)
| 3Q25 | 3Q24 | Change | YTD 2025 | YTD 2024 | Change | |
|---|---|---|---|---|---|---|
| Sales | $17,276 | $16,657 | 4% | $48,611 | $48,544 | 0% |
| Costs, Expenses and Other | ||||||
| Cost of sales | $3,855 | $4,080 | -6% | $10,831 | $11,365 | -5% |
| Selling, general and administrative | $2,633 | $2,731 | -4% | $7,835 | $7,952 | -1% |
| Research and development | $4,234 | $5,862 | -28% | $11,903 | $13,354 | -11% |
| Restructuring costs | $47 | $56 | -16% | $676 | $258 | * |
| Other (income) expense, net | $(238) | $(162) | 47% | $(281) | $(151) | 86% |
| Income Before Taxes | $6,745 | $4,090 | 65% | $17,647 | $15,766 | 12% |
| Income Tax Provision | $958 | $929 | $2,346 | $2,377 | ||
| Net Income | $5,787 | $3,161 | 83% | $15,301 | $13,389 | 14% |
| Less: Net Income Attributable to Noncontrolling Interests | $2 | $4 | $10 | $15 | ||
| Net Income Attributable to Merck & Co., Inc. | $5,785 | $3,157 | 83% | $15,291 | $13,374 | 14% |
| Earnings per Common Share Assuming Dilution | $2.32 | $1.24 | 87% | $6.08 | $5.26 | 16% |
| Shares Outstanding Assuming Dilution | 2,498 | 2,541 | 2,514 | 2,543 | ||
| Tax Rate | 14.2% | 22.7% | 13.3% | 15.1% |
MERCK & CO., INC., RAHWAY, N.J., USA CONSOLIDATED BALANCE SHEETS
(Amounts in millions)
| Sep 30, 2025 | Dec 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $11,246 | $10,154 |
| Short-term investments | $4,026 | $3,943 |
| Receivables | $7,160 | $6,323 |
| Inventories | $5,558 | $4,912 |
| Other current assets | $2,169 | $1,723 |
| Total current assets | $30,159 | $27,055 |
| Property, plant and equipment, net | $17,825 | $18,102 |
| Goodwill | $30,624 | $30,765 |
| Other intangible assets | $12,965 | $13,359 |
| Other assets | $3,797 | $3,918 |
| Total assets | $94,370 | $93,199 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | $15,234 | $13,935 |
| Long-term debt | $28,329 | $28,874 |
| Other long-term liabilities | $8,240 | $8,126 |
| Total liabilities | $51,803 | $50,935 |
| Merck stockholders’ equity | $42,567 | $42,264 |
| Total liabilities and equity | $94,370 | $93,199 |
