# Merck & Co., Inc. (MRK) Q2 2025 Financial Results Summary
RAHWAY, N.J., July 29, 2025 – Merck & Co., Inc., known as MSD outside the United States and Canada, today announced its financial results for the second quarter of 2025. Below is a summary of the key financial metrics and operational highlights from the report.
## Key Financial Metrics:
– **Total Worldwide Sales:** $15.8 billion
– **Change from Q2 2024:** Decrease of 2% (nominally and excluding foreign exchange)
– **GAAP Net Income:** $4.4 billion
– **Change from Q2 2024:** Decrease of 19%
– **Non-GAAP Net Income:** $5.4 billion
– **Change from Q2 2024:** Decrease of 8%
– **GAAP EPS:** $1.76
– **Change from Q2 2024:** Decrease of 18%
– **Non-GAAP EPS:** $2.13
– **Change from Q2 2024:** Decrease of 7%
– **Gross Margin:**
– GAAP: 77.5% (compared to 76.8% in Q2 2024)
– Non-GAAP: 82.2% (compared to 80.9% in Q2 2024)
## Sales Breakdown by Key Products:
– **KEYTRUDA:** $8.0 billion
– **Change:** Growth of 9%
– **WINREVAIR:** $336 million
– **Change:** Not meaningful previous year
– **Animal Health Sales:** $1.6 billion
– **Change:** Growth of 11%
– **GARDASIL/GARDASIL 9:** $1.1 billion
– **Change:** Decrease of 55%
## Expense Highlights:
– **Cost of Sales:** $3.6 billion
– **Change from Q2 2024:** Decrease of 5%
– **Selling, General, and Administrative (SG&A) Expenses:** $2.6 billion
– **Change from Q2 2024:** Decrease of 3%
– **Research and Development (R&D) Expenses:** $4.0 billion
– **Change from Q2 2024:** Increase of 16%
## New Developments and Initiatives:
– Announced an agreement to acquire **Verona Pharma** for approximately $10 billion, expected to close in Q4 2025.
– Positive topline results from Phase 3 trials for **Enlicitide Decanoate**, focusing on the treatment of adults with hyperlipidemia.
– Received FDA approval for **ENFLONSIA**, a preventative treatment for RSV in infants.
## Cost Structure Optimization:
– Launched a multiyear optimization initiative aimed at generating approximately $3.0 billion in annual cost savings by the end of 2027. This includes a $649 million charge in Q2 2025 for restructuring.
## Full-Year 2025 Financial Outlook:
– **Expected Worldwide Sales Range:** $64.3 billion to $65.3 billion
– **Expected Non-GAAP EPS Range:** $8.87 to $8.97
## Dividends and Share Repurchase:
– The company did not declare a quarterly dividend or announce any share repurchase program in this report.
## Summary of Income Changes:
– **Effective Tax Rate for Q2 2025:** 11.4%
– Notable change attributed to favorable audit adjustments.
This financial summary highlights Merck & Co., Inc.’s performance in the second quarter of 2025, showcasing the dynamics of their revenues and expenses, as well as significant advancements in their portfolio and cost-saving initiatives.
| 2Q25 GAAP | 2Q24 | Change | YTD 2025 GAAP | YTD 2024 | Change | |
|---|---|---|---|---|---|---|
| Sales | $ 15,806 | $ 16,112 | -2 % | $ 31,335 | $ 31,887 | -2 % |
| Cost of sales | $ 3,557 | $ 3,745 | -5 % | $ 6,976 | $ 7,285 | -4 % |
| Selling, general and administrative | $ 2,649 | $ 2,739 | -3 % | $ 5,202 | $ 5,221 | 0 % |
| Research and development | $ 4,048 | $ 3,500 | 16 % | $ 7,669 | $ 7,492 | 2 % |
| Restructuring costs | $ 560 | $ 80 | * | $ 629 | $ 202 | * |
| Other (income) expense, net | $ (7) | $ 42 | * | $ (43) | $ 12 | * |
| Income Before Taxes | $ 4,999 | $ 6,006 | -17 % | $ 10,902 | $ 11,675 | -7 % |
| Income Tax Provision | $ 571 | $ 545 | $ 1,388 | $ 1,447 | ||
| Net Income | $ 4,428 | $ 5,461 | -19 % | $ 9,514 | $ 10,228 | -7 % |
| Less: Net Income Attributable to Noncontrolling Interests | $ 1 | $ 6 | $ 8 | $ 11 | ||
| Net Income Attributable to Merck & Co., Inc., Rahway, NJ, USA | $ 4,427 | $ 5,455 | -19 % | $ 9,506 | $ 10,217 | -7 % |
| Earnings per Common Share Assuming Dilution | $ 1.76 | $ 2.14 | -18 % | $ 3.77 | $ 4.02 | -6 % |
| Average Shares Outstanding Assuming Dilution | $ 2,513 | $ 2,544 | $ 2,522 | $ 2,544 | ||
| Tax Rate | 11.4 % | 9.1 % | 12.7 % | 12.4 % | ||
| * 100% or greater |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Cash and cash equivalents | $ 5,352 | $ 4,883 |
| Accounts receivable | $ 9,363 | $ 8,881 |
| Inventories | $ 4,236 | $ 4,421 |
| Prepaid expenses and other | $ 2,200 | $ 2,458 |
| Total current assets | $ 21,151 | $ 20,643 |
| Property, plant and equipment | $ 18,200 | $ 16,307 |
| Goodwill | $ 36,473 | $ 36,623 |
| Other intangible assets | $ 17,592 | $ 17,953 |
| Other assets | $ 2,654 | $ 2,410 |
| Total non-current assets | $ 74,919 | $ 73,293 |
| Total Assets | $ 96,070 | $ 93,936 |
| Accounts payable | $ 9,735 | $ 9,156 |
| Short-term debt | $ 6,914 | $ 5,982 |
| Accrued expenses and other | $ 8,190 | $ 7,525 |
| Total current liabilities | $ 24,839 | $ 22,663 |
| Long-term debt | $ 33,344 | $ 32,198 |
| Deferred tax liabilities | $ 5,213 | $ 5,095 |
| Other non-current liabilities | $ 4,703 | $ 5,156 |
| Total non-current liabilities | $ 43,260 | $ 42,449 |
| Total Liabilities | $ 68,099 | $ 65,112 |
| Common stock | $ 231 | $ 230 |
| Additional paid-in capital | $ 18,727 | $ 18,510 |
| Retained earnings | $ 24,028 | $ 23,460 |
| Accumulated other comprehensive | $ 1,500 | $ 1,644 |
| Total Stockholders’ Equity | $ 27,971 | $ 28,824 |
| Total Liabilities and Equity | $ 96,070 | $ 93,936 |
