Merck reported third-quarter results that surpassed Wall Street expectations and prompted the company to increase its full-year adjusted earnings forecast. The pharmaceutical company now projects adjusted earnings between $2.77 and $2.82 per share, raising its previous guidance range of $2.66 to $2.76 per share. The updated guidance incorporates a one-time charge of $400 million, equivalent to 12 cents per share, stemming from a licensing arrangement with Chinese cancer drugmaker SciBrunch. Additionally, Merck narrowed the lower end of its 2026 revenue outlook to a range of $66.8 billion to $67.3 billion, compared with the previous guidance of $66.3 billion to $67.3 billion.
Keytruda, Merck’s flagship immunotherapy product, generated $8.60 billion in quarterly sales, substantially exceeding analyst expectations of $7.73 billion according to StreetAccount. A significant portion of this outperformance came from Keytruda Qlex, the newer subcutaneous injection formulation, which achieved $830 million in sales during the quarter. This marked the strongest quarterly performance since the product’s launch in 2025 and exceeded analyst estimates of $649 million, suggesting the drug could potentially achieve blockbuster status with over $1 billion in annual sales. Merck is positioning Keytruda Qlex as a cornerstone of its long-term growth strategy, aiming to transition patients from the original intravenous formulation to the more convenient under-the-skin injection.
Beyond Keytruda, several other Merck products demonstrated robust performance. Winrevair, used to treat a rare, deadly lung condition, delivered $694 million in sales, representing a 93 percent increase from the comparable year-earlier period and exceeding analyst expectations of $645 million. The Gardasil vaccine, which prevents cancers caused by human papillomavirus, generated approximately $2 billion in sales due to elevated demand in the United States, surpassing analyst projections of $1.76 billion. This performance represents a turnaround from the previous year when Merck faced elevated inventory levels and weak vaccine demand in China.
Merck’s overall quarterly revenue reached $18.09 billion, reflecting a 5 percent increase compared with the same quarter a year earlier. The company reported net income of $5.07 billion, or $2.04 per share, compared with $5.79 billion, or $2.32 per share, in the year-earlier period. Excluding acquisition and restructuring expenses, Merck posted adjusted earnings of $2.49 per share. The company’s animal health business contributed $1.68 billion in sales, slightly below analyst expectations. The strong financial performance comes as Merck pursues strategic acquisitions to offset anticipated generic competition for Keytruda following the expiration of key patents in 2028.
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