Merck reported third-quarter results that surpassed analyst estimates, prompting the company to elevate its full-year profit outlook. The adjusted earnings guidance now ranges from $2.77 to $2.82 per share, up from the previous 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 forecast to between $66.8 billion and $67.3 billion, compared to the prior range of $66.3 billion to $67.3 billion.
Keytruda, the company’s flagship immunotherapy, generated $8.60 billion in quarterly sales, substantially exceeding the $7.73 billion anticipated by analysts. The newer formulation, Keytruda Qlex, delivered particularly strong performance with $830 million in sales during the quarter, surpassing analyst expectations of $649 million. This represented the highest quarterly total for Qlex since its launch in 2025. Merck is strategically promoting the under-the-skin injection form as a cornerstone of its growth initiative, aiming to transition patients from the original intravenous version and maintain blockbuster sales levels as key patents for the original formulation expire in 2028.
Beyond Keytruda, other products in Merck’s portfolio demonstrated robust growth. Winrevair, used to treat a rare lung condition, posted $694 million in sales, a 93 percent increase from the comparable year-earlier period and exceeding analyst expectations of $645 million. The Gardasil vaccine, which prevents HPV-related cancers, generated approximately $2 billion in sales, driven by heightened demand in the United States and surpassing analyst projections of $1.76 billion. The animal health division contributed $1.68 billion in sales, slightly below analyst estimates.
Merck’s overall quarterly revenue reached $18.09 billion, reflecting a 5 percent increase from the prior year period. Net income totaled $5.07 billion, or $2.04 per share, compared to $5.79 billion, or $2.32 per share, in the year-earlier quarter. Excluding acquisition and restructuring expenses, the company reported adjusted earnings of $2.49 per share for the quarter.
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