Merck raises sales outlook after US$18.1B third quarter

Sales rose 5 per cent to US$18.1 billion as Merck & Co., Inc. NYSEMRK reported third-quarter results on Thursday. Adjusted earnings of US$2.49 a share exceeded the US$2.09 consensus listed by StockStory in its Oct. 29 earnings report.

That report put revenue expectations at US$17.31 billion. Merck narrowed its full-year sales forecast to US$66.8 billion to US$67.3 billion and raised the midpoint. Its adjusted earnings range is US$2.77 to US$2.82 a share.

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Merck is a large New Jersey-based pharmaceutical and animal-health company with a global commercial and research business.

Merck shares stood at US$141.73 on the NYSE at 9:49 a.m. EDT on Oct. 28, according to Google Finance's NYSEMRK quote. That observation predates the earnings release and does not establish a post-results reaction.

Keytruda Growth Includes Inventory Build

Keytruda and Keytruda Qlex generated US$8.6 billion in third-quarter 2026 sales, up 6 per cent from a year earlier. Merck attributed growth to uptake in earlier-stage cancers, including breast, cervical, head and neck, and bladder cancers, alongside higher demand in metastatic indications.

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The company said pharmaceutical sales benefited from purchase timing by approximately US$550 million during the quarter. Its Oct. 29 prepared remarks said increased channel inventory largely offset an unfavourable comparison in U.S. Keytruda customer purchases, with that inventory expected to unwind in the fourth quarter.

"Sales of KEYTRUDA QLEX were $830 million. We continue to see adoption increase, which supports our confidence in the trajectory of the product," chief financial officer Caroline Litchfield wrote in the Oct. 29 prepared remarks.

Winrevair sales reached US$694 million in the third quarter of 2026, rising 93 per cent. Merck attributed that growth to higher demand and favourable wholesaler and specialty-pharmacy purchasing patterns in the United States, alongside international launch uptake, particularly in Europe and Japan.

Gardasil and Gardasil 9 sales increased 14 per cent to approximately US$2 billion in the third quarter of 2026. Merck said favourable public-sector purchasing patterns and higher net pricing in the United States drove the increase.

Generic competition weighed on older products in the third quarter of 2026. Januvia and Janumet sales declined 39 per cent to US$380 million, while Bridion sales fell 67 per cent to US$144 million following loss of U.S. market exclusivity.

Animal-health sales increased 4 per cent to approximately US$1.7 billion in the third quarter of 2026. Merck attributed growth to its livestock and companion-animal portfolios, with higher poultry-product demand and new companion-animal product launches among the drivers.

Profit Falls Despite Higher Sales

Third-quarter 2026 net income attributable to Merck fell to US$5.065 billion from US$5.785 billion a year earlier. Reported earnings declined to US$2.04 a share from US$2.32, while adjusted earnings fell from US$2.58.

Both reported and adjusted earnings included a one-time licensing charge of US$0.12 a share in the third quarter of 2026. Merck's financial disclosures put research and development spending at US$4.537 billion, compared with US$4.234 billion a year earlier.

Among pharmaceutical peers, Bristol Myers Squibb NYSEBMY also reported third-quarter results on Oct. 29. Its shares closed at US$60.57 at 4 p.m. EDT on Oct. 28, according to Google Finance's NYSEBMY quote, providing a pre-results sector comparison.

Merck's next scheduled event is its Oct. 29 earnings call at 9 a.m. EDT, when management will discuss the quarter and financial outlook. The expected fourth-quarter inventory unwind will frame questions about how much sales growth carries into year-end.