Merck & Co., Inc. (MRK): Results of Operations and Financial Condition
Merck & Co., Inc. (MRK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 - 1 - News Release Merck & Co., Inc., Rahway, N.J., USA Announces Second-Quarter 2026 Financial Results; Highlights Key Regulatory and Clinical Milestones Across Broad, Diverse Pipeline Sales Growth Reflects Continued Strength in Oncology, Including Initial Uptake of
How this was made
The 30-second read
Why it matters
Merck’s filing provides fresh, trade-relevant financial datapoints: GAAP sales, GAAP net loss, EPS, and franchise-level sales (notably oncology, vaccines, cardiometabolic/respiratory, and infectious disease). The GAAP loss versus prior-year profit can pressure valuation multiples, while product sales detail can support selective optimism in specific franchises.
Market read
This is a primary financial disclosure with concrete P&L and product sales figures, making it actionable for earnings-model updates and near-term positioning.
What to watch
The excerpt shows major R&D expense changes and restructuring costs, but it does not provide the underlying operational drivers or full guidance context, so the market may wait for the complete earnings narrative.
Second-quarter sales were $16,607 million, up 5%, while Merck reported GAAP net loss attributable to Merck & Co., Inc., Rahway, N.J., USA of $(1,335) million and diluted loss per share of $(0.54).
Sales increased 5%, with Pharmaceutical sales up 5% and Animal Health sales up 8%, but GAAP profitability moved to a loss as research and development expense rose to $9,741 million from $4,048 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $16,607 million | – | 5% |
| Cost of salesGAAP | $4,395 million | – | 24% |
| Selling, general and administrativeGAAP | $2,904 million | – | 10% |
| Research and developmentGAAP | $9,741 million | – | * |
| Restructuring costsGAAP | $151 million | – | -73% |
| Other (income) expense, netGAAP | $99 million | – | * |
| (Loss) Income Before TaxesGAAP | $(683) million | – | * |
| Income Tax ProvisionGAAP | $654 million | – | – |
| Net (Loss) IncomeGAAP | $(1,337) million | – | * |
| Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USAGAAP | $(1,335) million | – | * |
| (Loss) Earnings per Common Share Assuming DilutionGAAP | $(0.54) per share | – | * |
| Average Shares Outstanding Assuming DilutionGAAP | 2,470 million | – | – |
| Tax RateGAAP | -95.9% | – | * |
| June YTD SalesGAAP | $32,893 million | – | 5% |
| June YTD Cost of salesGAAP | $8,590 million | – | 23% |
| June YTD Selling, general and administrativeGAAP | $5,604 million | – | 8% |
| June YTD Research and developmentGAAP | $22,333 million | – | * |
| June YTD Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USAGAAP | $(5,575) million | – | * |
| June YTD (Loss) Earnings per Common Share Assuming DilutionGAAP | $(2.26) per share | – | * |
| Total Vaccines salesother | $2,361 million | – | – |
| June YTD Total Vaccines salesother | $4,675 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PharmaceuticalNo qualitative driver disclosed in the provided excerpt. | $14,760 million | – | 5% |
| Animal HealthLivestock sales were $1,041 million and Companion Animal sales were $734 million. | $1,775 million | – | 8% |
| Other RevenuesOther Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. | $72 million | – | -35% |
| KeytrudaU.S. sales were $4,611 million and International sales were $3,293 million. | $7,904 million | – | -1% |
| Keytruda QlexU.S. sales were $395 million and International sales were $68 million. | $463 million | – | – |
| Alliance Revenue – LynparzaAlliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs. | $365 million | – | -1% |
| Alliance Revenue – LenvimaAlliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs. | $283 million | – | 7% |
| WeliregU.S. sales were $214 million and International sales were $57 million. | $271 million | – | 67% |
| Alliance Revenue – ReblozylAlliance Revenue represents royalties. | $122 million | – | 15% |
| Gardasil/Gardasil 9U.S. sales were $542 million and International sales were $626 million. | $1,169 million | – | 4% |
| ProQuad/M-M-R II/VarivaxU.S. sales were $438 million and International sales were $154 million. | $592 million | – | -3% |
| CapvaxiveU.S. sales were $138 million and International sales were $45 million. | $184 million | – | 42% |
| VaxneuvanceU.S. sales were $69 million and International sales were $80 million. | $148 million | – | -35% |
| RotaTeqU.S. sales were $84 million and International sales were $50 million. | $134 million | – | 10% |
| EnflonsiaNo qualitative driver disclosed in the provided excerpt. | $2 million | – | – |
| WinrevairU.S. sales were $522 million and International sales were $66 million. | $588 million | – | 75% |
| OhtuvayreNo qualitative driver disclosed in the provided excerpt. | $204 million | – | – |
| Alliance Revenue - Adempas/VerquvoAlliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. | $126 million | – | 3% |
| AdempasNet product sales in the Company's marketing territories. | $78 million | – | -2% |
| BridionU.S. sales were $460 million and International sales were $37 million. | $497 million | – | 8% |
| PrevymisU.S. sales were $147 million and International sales were $148 million. | $295 million | – | 29% |
| DelstrigoU.S. sales were $13 million and International sales were $88 million. | $101 million | – | 21% |
| ZerbaxaU.S. sales were $44 million and International sales were $34 million. | $77 million | – | 4% |
| Isentress/Isentress HDU.S. sales were $36 million and International sales were $24 million. | $60 million | – | -30% |
| DificidU.S. sales were $11 million and International sales were $12 million. | $22 million | – | -77% |
| LagevrioU.S. sales were $1 million and International sales were $3 million. | $5 million | – | -95% |
| JanuviaU.S. sales were $149 million and International sales were $109 million. | $258 million | – | -31% |
| JanumetU.S. sales were $28 million and International sales were $143 million. | $171 million | – | -32% |
| Other PharmaceuticalIncludes Pharmaceutical products not individually shown. | $641 million | – | -9% |
| LivestockU.S. sales were $202 million and International sales were $838 million. | $1,041 million | – | 8% |
| Companion AnimalU.S. sales were $333 million and International sales were $402 million. | $734 million | – | 7% |
What drove it
- Total sales were $16,607 million, up 5%, with U.S. sales of $9,367 million, up 6%, and International sales of $7,240 million, up 4%.
- Pharmaceutical sales were $14,760 million, up 5%, and Animal Health sales were $1,775 million, up 8%.
- Winrevair sales were $588 million, up 75%; Welireg sales were $271 million, up 67%; and Capvaxive sales were $184 million, up 42%.
- June YTD Keytruda sales were $15,810 million, up 4%, and June YTD Keytruda Qlex sales were $590 million.
Concerns
- GAAP net loss attributable to Merck & Co., Inc., Rahway, N.J., USA was $(1,335) million, compared with net income of $4,427 million in the second quarter of 2025.
- Research and development expense was $9,741 million, compared with $4,048 million in the second quarter of 2025.
- Keytruda sales were $7,904 million, down 1%.
- Total Vaccines sales were $2,361 million, compared with $2,370 million in the second quarter of 2025.
- Vaxneuvance sales declined 35%, Januvia sales declined 31%, Janumet sales declined 32%, Dificid sales declined 77%, and Lagevrio sales declined 95%.
What to watch
- Keytruda sales, which were $7,904 million globally, including U.S. sales of $4,611 million and International sales of $3,293 million.
- Keytruda Qlex sales, which were $463 million globally in the second quarter and $590 million for June YTD 2026.
- Total Vaccines sales following $2,361 million in the second quarter and $4,675 million for June YTD 2026.
- Research and development expense following $9,741 million in the second quarter and $22,333 million for June YTD 2026.
- Animal Health, where Livestock sales were $1,041 million and Companion Animal sales were $734 million.
Analysis
Merck recorded second-quarter sales of $16,607 million, up 5% from $15,806 million. Pharmaceutical sales were $14,760 million, up 5%, while Animal Health sales were $1,775 million, up 8%. U.S. total sales rose 6% to $9,367 million and International total sales increased 4% to $7,240 million. June YTD sales were $32,893 million, up 5% from $31,335 million.
The product mix showed growth in several newer or expanding products. Winrevair sales increased 75% to $588 million, Welireg rose 67% to $271 million, Capvaxive grew 42% to $184 million, and Prevymis increased 29% to $295 million. Keytruda remained the largest reported product at $7,904 million, but sales declined 1%; this included a 3% decline in the U.S. that was partly offset by 3% International growth. Keytruda Qlex contributed $463 million in the quarter.
Vaccines were a mixed component of sales. Total Vaccines sales were $2,361 million compared with $2,370 million in the prior-year quarter. Gardasil/Gardasil 9 increased 4% to $1,169 million and Capvaxive increased 42%, while Vaxneuvance fell 35% to $148 million and ProQuad/M-M-R II/Varivax declined 3% to $592 million. Additional pressure was evident in mature products, including declines of 31% for Januvia, 32% for Janumet, 77% for Dificid, and 95% for Lagevrio.
GAAP earnings deteriorated sharply despite sales growth. Research and development expense was $9,741 million, compared with $4,048 million in the prior-year quarter, and cost of sales increased 24% to $4,395 million. Merck reported GAAP loss before taxes of $(683) million, GAAP net loss of $(1,337) million, and GAAP net loss attributable to Merck of $(1,335) million. Diluted loss per share was $(0.54), compared with earnings per share of $1.76 in the second quarter of 2025. The tax rate was -95.9%.
The provided excerpt contains no forward guidance, capital-return data, balance-sheet data, cash-flow data, or current-period non-GAAP reconciliation. The filing therefore provides no reported basis to assess the outlook or compare reported results with prior guidance. Attention centers on the durability of Keytruda sales, uptake of Keytruda Qlex and newer cardiometabolic and respiratory products, vaccine trends, and the level of research and development expense.
Not in the filing
stated, not guessed- Current-period non-GAAP sales, income, earnings per share, and tax rate
- GAAP gross profit and gross margin
- GAAP operating income or loss and operating margin
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Forward guidance for revenue, gross margin, operating expenses, tax rate, earnings per share, or other metrics
- Prior outlook for comparison with actual results
- Named executive commentary and executive quotes
- Quarter-over-quarter percentage changes for reported metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The document is SEC Form 8-K Item 2.02 with Exhibit 99.2, providing GAAP results of operations and financial condition plus non-GAAP reconciliation and key product sales for 2Q 2026.
Ticker impact
Merck’s 8-K Item 2.02 reports 2Q 2026 GAAP sales of $16,607M and a GAAP net loss of $4,243M for the first six months.
Likely negative-to-neutral near term as traders focus on the GAAP net loss and R&D cost volatility, partially offset by specific product line sales details.
This is a primary-source financial statement update (8-K) with concrete P&L and product figures. However, the excerpt does not include management commentary, guidance, or segment drivers beyond line items, limiting conviction on the durability of the earnings swing.
Market effects
Large pharma earnings volatility and R&D expense changes can influence read-across expectations for peers’ cost discipline and pipeline spend.
US-listed large-cap pharma sentiment may spill into European pharma via common factor exposure to earnings quality.
Global product sales (US and international splits) can affect broader demand expectations for oncology, vaccines, and cardiometabolic franchises.
Counterpoint
Traders may discount the GAAP net loss by emphasizing the non-GAAP reconciliation and focusing on sales growth in key franchises (e.g., Winrevair) rather than accounting-driven swings.
Key entities
- public_companyMerck & Co., Inc.
Subject of the SEC 8-K Item 2.02, reporting GAAP results, non-GAAP reconciliation, and key product sales for 2Q 2026.
- filing_exhibitMerck & Co., Inc. Exhibit 99.2
Contains consolidated statement of operations (GAAP) and franchise/key product sales tables for 2Q 2026.
