Merck reported second-quarter financial results that exceeded analyst expectations, leading the pharmaceutical company to increase its full-year revenue forecast. The revised guidance projects 2026 revenue between $66.3 billion and $67.3 billion, up from the previous range of $65.8 billion to $67 billion.
The company generated $16.61 billion in quarterly revenue, representing 5% growth compared to the prior-year period. Merck’s flagship immunotherapy drug Keytruda continued to drive results, producing $8.37 billion in sales for the quarter, a 5% increase year-over-year and slightly ahead of analyst expectations. A newly developed injectable formulation of Keytruda contributed $463 million to this total and represents a strategic initiative to maintain revenue as the original intravenous version approaches patent expiration in 2028.
Merck’s newer products demonstrated robust performance. Winrevair, a treatment for a rare lung condition, generated $588 million in quarterly sales, up 75% year-over-year and exceeding analyst expectations. The pneumococcal vaccine Capvaxive posted $184 million in sales, up 42% from the comparable prior-year quarter. The animal health division also surpassed expectations with $1.78 billion in quarterly sales.
Despite the strong revenue performance, Merck reduced its adjusted earnings guidance to a range of $2.66 to $2.76 per share from the previous range of $5.04 to $5.16 per share. The reduction reflects charges related to recent acquisitions, including a $5.7 billion charge tied to the Terns Pharmaceuticals acquisition and a $9 billion charge related to the Cidara Therapeutics acquisition completed in January. On a net basis, Merck reported a loss of $1.34 billion, or 54 cents per share, for the quarter, compared with net income of $4.43 billion in the prior-year period.
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