Merck reported third-quarter results that exceeded Wall Street expectations, prompting the pharmaceutical company to increase its profit outlook. The company now projects adjusted earnings between $2.77 and $2.82 per share, up from its previous guidance range of $2.66 to $2.76 per share. The revised guidance incorporates a one-time $400 million charge related to a licensing agreement with Chinese cancer drugmaker SciBrunch. Additionally, Merck narrowed its 2026 revenue guidance to a range of $66.8 billion to $67.3 billion, compared to the prior outlook of $66.3 billion to $67.3 billion.
Keytruda, Merck’s flagship immunotherapy product, generated $8.60 billion in quarterly sales, surpassing the $7.73 billion that analysts had anticipated. A significant contributor to this performance was Keytruda Qlex, the newer under-the-skin injectable formulation, which posted $830 million in quarterly sales since its 2025 launch. This performance exceeded analyst expectations of $649 million and represents the highest quarterly sales figure for Qlex to date. The strong showing suggests the product could potentially reach multibillion-dollar annual sales levels.
Merck is emphasizing Keytruda Qlex as a cornerstone of its growth strategy, particularly as the company seeks to offset approaching patent expirations for the original intravenous version beginning in 2028. The company is working to transition patients from the original formulation to the more convenient injection form, a move designed to defend market share and sustain Keytruda’s blockbuster revenue trajectory. This strategy reflects Merck’s broader deal-making activities aimed at counteracting generic competition.
Beyond Keytruda, other Merck products demonstrated robust performance. Winrevair, used to treat a rare lung condition, generated $694 million in sales, up 93% from the prior-year quarter and exceeding analyst expectations of $645 million. The Gardasil HPV vaccine drew approximately $2 billion in sales due to elevated U.S. demand, surpassing the $1.76 billion analysts had projected. The animal health division posted $1.68 billion in sales, slightly below analyst estimates. Overall, Merck reported $18.09 billion in quarterly revenue, representing 5% growth compared to the same period a year earlier.
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