◆ Inside the Latest Quarter (Q2 2026)

Merck & Co. (MRK) — the variant view

In the second quarter of 2026 Merck grew sales 5% and reported a loss, because it charged the $5.7 billion Terns purchase to research.

📈 MRK valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Merck's second quarter of 2026 had growing sales and a reported loss. Sales were $16,607 million, up 5%, or 4% excluding exchange rates1. The GAAP net loss attributable was $1,335 million, or $0.54 a share, against net income of $4,427 million a year earlier2, because of a $5.7 billion charge for the acquisition of Terns3.

Q2 2026 sales growth by product (%)+75%Winrevair+67%Welireg+5%Keytrudafranchise+4%Gardasil-31%Januvia andJanumet-35%VaxneuvanceMerck Q2 2026 results release
Launches up sharply, older products down.

Keytruda carried the quarter. The franchise sold $8,366 million, up 5%, including $463 million from Keytruda Qlex4; Merck attributes the growth to "strong global uptake in earlier-stage indications"5. Gardasil rose 4% to $1,169 million6. Winrevair grew 75% to $588 million and Welireg 67% to $271 million7.

The declines were concentrated. Januvia and Janumet fell 31% to $429 million after losing American exclusivity8; Vaxneuvance fell 35% to $148 million9. Animal Health grew to $1,775 million from $1,646 million10.

Margins narrowed. The GAAP gross margin was 73.5% against 77.5% a year earlier11, and research expense was $9,741 million against $4,048 million12. Interest expense rose to $525 million from $305 million13. Merck raised its 2026 sales range to $66.3 to $67.3 billion and cut its non-GAAP earnings range to $2.66 to $2.76, reflecting the Cidara and Terns charges14.

Beneath the headline loss, the segments grew. On the recast basis Pharmaceutical segment profit was $11,612 million against $11,103 million, and Animal Health $636 million against $593 million15. Over the first half, Pharmaceutical segment profit was $23,151 million and Animal Health $1,359 million16. The non-GAAP gross margin was 81.1% against 82.2%17, a smaller fall than the GAAP measure because the acquisition charges sit outside it.

The quarter showed a business still growing underneath a reported loss. Keytruda's franchise growth, 5% in the second quarter18, is what to watch next; Merck noted a favourable timing effect of about $250 million from wholesaler purchases in the first half19, so growth near 3% in the third quarter would say the underlying rate is already slowing.

References
  1. ReportedSales were $16,607 million, up 5%, or 4% excluding exchange rates.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - sales by product and pipeline highlights. — Q2 2026 · publ. 4 August 2026 · source ↗
  2. ReportedThe GAAP net loss attributable was $1,335 million, or $0.54 a share, against net income of $4,427 million a year earlier, because of a $5.7 billion charge for the acquisition of Terns.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  3. ReportedThe GAAP net loss attributable was $1,335 million, or $0.54 a share, against net income of $4,427 million a year earlier, because of a $5.7 billion charge for the acquisition of Terns.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  4. ReportedThe franchise sold $8,366 million, up 5%, including $463 million from Keytruda Qlex; Merck attributes the growth to "strong global uptake in earlier-stage indications".
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - sales by product and pipeline highlights. — Q2 2026 · publ. 4 August 2026 · source ↗
  5. ReportedThe franchise sold $8,366 million, up 5%, including $463 million from Keytruda Qlex; Merck attributes the growth to "strong global uptake in earlier-stage indications".
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - sales by product and pipeline highlights. — Q2 2026 · publ. 4 August 2026 · source ↗
  6. ReportedGardasil rose 4% to $1,169 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - vaccine and Animal Health sales. — Q2 2026 · publ. 4 August 2026 · source ↗
  7. ReportedWinrevair grew 75% to $588 million and Welireg 67% to $271 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - sales by product and pipeline highlights. — Q2 2026 · publ. 4 August 2026 · source ↗
  8. ReportedJanuvia and Janumet fell 31% to $429 million after losing American exclusivity; Vaxneuvance fell 35% to $148 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - vaccine and Animal Health sales. — Q2 2026 · publ. 4 August 2026 · source ↗
  9. ReportedJanuvia and Janumet fell 31% to $429 million after losing American exclusivity; Vaxneuvance fell 35% to $148 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - vaccine and Animal Health sales. — Q2 2026 · publ. 4 August 2026 · source ↗
  10. ReportedAnimal Health grew to $1,775 million from $1,646 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - vaccine and Animal Health sales. — Q2 2026 · publ. 4 August 2026 · source ↗
  11. ReportedThe GAAP gross margin was 73.5% against 77.5% a year earlier, and research expense was $9,741 million against $4,048 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  12. ReportedThe GAAP gross margin was 73.5% against 77.5% a year earlier, and research expense was $9,741 million against $4,048 million.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  13. ReportedInterest expense rose to $525 million from $305 million.
    Merck & Co. Form 10-Q for the quarter ended 30 June 2026 - segment profits on the recast basis, the Cidara and Terns acquisitions, the Halozyme litigation, China shipments, loss of exclusivity events and the balance sheet. — Q2 2026 · publ. 7 August 2026 · source ↗
  14. ReportedMerck raised its 2026 sales range to $66.3 to $67.3 billion and cut its non-GAAP earnings range to $2.66 to $2.76, reflecting the Cidara and Terns charges.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  15. ReportedOn the recast basis Pharmaceutical segment profit was $11,612 million against $11,103 million, and Animal Health $636 million against $593 million.
    Merck & Co. Form 10-Q for the quarter ended 30 June 2026 - segment profits on the recast basis, the Cidara and Terns acquisitions, the Halozyme litigation, China shipments, loss of exclusivity events and the balance sheet. — Q2 2026 · publ. 7 August 2026 · source ↗
  16. ReportedOver the first half, Pharmaceutical segment profit was $23,151 million and Animal Health $1,359 million.
    Merck & Co. Form 10-Q for the quarter ended 30 June 2026 - segment profits on the recast basis, the Cidara and Terns acquisitions, the Halozyme litigation, China shipments, loss of exclusivity events and the balance sheet. — Q2 2026 · publ. 7 August 2026 · source ↗
  17. ReportedThe non-GAAP gross margin was 81.1% against 82.2%, a smaller fall than the GAAP measure because the acquisition charges sit outside it.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - earnings, charges and 2026 guidance. — Q2 2026 · publ. 4 August 2026 · source ↗
  18. ReportedKeytruda's franchise growth, 5% in the second quarter, is what to watch next; Merck noted a favourable timing effect of about $250 million from wholesaler purchases in the first half, so growth near 3% in the third quarter would say the underlying rate is already slowing.
    Merck second-quarter 2026 results release, Form 8-K exhibit 99.1 - sales by product and pipeline highlights. — Q2 2026 · publ. 4 August 2026 · source ↗
  19. ReportedKeytruda's franchise growth, 5% in the second quarter, is what to watch next; Merck noted a favourable timing effect of about $250 million from wholesaler purchases in the first half, so growth near 3% in the third quarter would say the underlying rate is already slowing.
    Merck & Co. Form 10-Q for the quarter ended 30 June 2026 - segment profits on the recast basis, the Cidara and Terns acquisitions, the Halozyme litigation, China shipments, loss of exclusivity events and the balance sheet. — Q2 2026 · publ. 7 August 2026 · source ↗
Sources
Generated September 25, 2026