European Investor
04 Aug 2026, 14:27
Merck Stock Edges Higher as Strong Product Growth Offsets Acquisition Charge
Merck (NYSE: MRK) shares rose 0.54% on Tuesday after the pharmaceutical company reported solid second-quarter revenue growth, raised its full-year sales outlook and highlighted multiple regulatory and clinical milestones, despite posting a quarterly loss due to a one-time acquisition-related charge.
Second-quarter worldwide sales increased 5% year over year to $16.6 billion, driven by continued strength in oncology, animal health and recently launched products. The company reported a GAAP loss per share of $0.54 and a non-GAAP loss per share of $0.13, both primarily reflecting a $2.31 per share charge related to the acquisition of Terns Pharmaceuticals.
Oncology and New Product Launches Drive Revenue Growth
Merck's flagship cancer franchise remained the company's largest growth engine.
KEYTRUDA and the newly launched KEYTRUDA QLEX generated combined sales of $8.4 billion, up 5% from a year earlier, with KEYTRUDA QLEX contributing $463 million during its initial launch period.
WINREVAIR continued its rapid commercial expansion, with sales jumping 75% year over year to $588 million, while Animal Health revenue increased 8% to $1.8 billion, providing additional support for overall growth.
Pipeline Momentum and Higher Guidance
Beyond commercial performance, Merck reported several important pipeline achievements during the quarter.
The FDA approved LIPFENDRA, the first once-daily oral PCSK9 inhibitor for lowering LDL cholesterol, while the company also announced positive clinical data for its oncology and HIV programs, including a Phase 3 study evaluating a once-weekly oral HIV treatment developed with Gilead.
Reflecting continued business momentum, Merck narrowed and raised its full-year 2026 revenue guidance to between $66.3 billion and $67.3 billion. The company now expects non-GAAP EPS of $2.66 to $2.76, including the financial impact of the Terns acquisition.
What to Watch
Despite the acquisition-related accounting charge, investors appeared encouraged by Merck's underlying operating performance, growing contribution from recently launched medicines and continued pipeline progress. Going forward, markets will monitor the commercial rollout of KEYTRUDA QLEX and LIPFENDRA, continued growth of WINREVAIR, and additional regulatory and clinical milestones expected across Merck's expanding pipeline.
Merck (NYSE: MRK) shares rose 0.54% on Tuesday after the pharmaceutical company reported solid second-quarter revenue growth, raised its full-year sales outlook and highlighted multiple regulatory and clinical milestones, despite posting a quarterly loss due to a one-time acquisition-related charge.
Second-quarter worldwide sales increased 5% year over year to $16.6 billion, driven by continued strength in oncology, animal health and recently launched products. The company reported a GAAP loss per share of $0.54 and a non-GAAP loss per share of $0.13, both primarily reflecting a $2.31 per share charge related to the acquisition of Terns Pharmaceuticals.
Oncology and New Product Launches Drive Revenue Growth
Merck's flagship cancer franchise remained the company's largest growth engine.
KEYTRUDA and the newly launched KEYTRUDA QLEX generated combined sales of $8.4 billion, up 5% from a year earlier, with KEYTRUDA QLEX contributing $463 million during its initial launch period.
WINREVAIR continued its rapid commercial expansion, with sales jumping 75% year over year to $588 million, while Animal Health revenue increased 8% to $1.8 billion, providing additional support for overall growth.
Pipeline Momentum and Higher Guidance
Beyond commercial performance, Merck reported several important pipeline achievements during the quarter.
The FDA approved LIPFENDRA, the first once-daily oral PCSK9 inhibitor for lowering LDL cholesterol, while the company also announced positive clinical data for its oncology and HIV programs, including a Phase 3 study evaluating a once-weekly oral HIV treatment developed with Gilead.
Reflecting continued business momentum, Merck narrowed and raised its full-year 2026 revenue guidance to between $66.3 billion and $67.3 billion. The company now expects non-GAAP EPS of $2.66 to $2.76, including the financial impact of the Terns acquisition.
What to Watch
Despite the acquisition-related accounting charge, investors appeared encouraged by Merck's underlying operating performance, growing contribution from recently launched medicines and continued pipeline progress. Going forward, markets will monitor the commercial rollout of KEYTRUDA QLEX and LIPFENDRA, continued growth of WINREVAIR, and additional regulatory and clinical milestones expected across Merck's expanding pipeline.
