Merck exceeded analyst expectations in the second quarter, posting revenue of $16.61 billion, up 5% compared to the prior year period. The result surpassed the consensus estimate of $16.36 billion and prompted the pharmaceutical company to increase its full-year revenue outlook.
The company’s cancer immunotherapy Keytruda, the world’s top-selling prescription medicine, delivered quarterly sales of $8.37 billion, representing 5% growth and exceeding analyst projections of $8.07 billion. Within that total, the newer subcutaneous formulation Keytruda QLEX contributed $463 million in sales. Chief Financial Officer Caroline Litchfield attributed the stronger-than-expected performance partly to robust uptake of the QLEX variant and indicated the company projects the subcutaneous version could represent 30% to 40% of total Keytruda adoption by the end of 2027.
Other product categories produced mixed results. The Gardasil HPV vaccine generated $1.17 billion in sales, marginally exceeding the $1.15 billion consensus. Animal health operations rose 8% to $1.78 billion, slightly ahead of projections. However, combination vaccines for measles, mumps, rubella and chickenpox declined 3% to $592 million, falling short of the $608 million estimate, which management attributed to lower demand in the United States.
Merck reported a net loss of 13 cents per share for the quarter, which included a $2.31 per share charge stemming from its acquisition of Terns Pharmaceuticals. Adjusted results beat analyst expectations. The company lifted its 2026 full-year revenue guidance to a range of $66.3 billion to $67.3 billion, compared to the previous range of $65.8 billion to $67.0 billion. It also adjusted 2026 earnings guidance to $2.66 to $2.76 per share on an adjusted basis, accounting for acquisition-related charges.
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