Merck and Pfizer Boost Sales Projections Amid Diverging Profit Guidance
Pharmaceutical giants Merck and Pfizer have both raised their full-year sales outlooks after strong quarterly performances, but their profit guidance differs significantly.
Merck's revenue projection has been lifted to $66.3 billion-$67.3 billion for 2026, following a 5% increase in second-quarter sales to $16.61 billion, which exceeded estimates of $16.37 billion.
However, the company cut its adjusted earnings per share guidance to $2.66-$2.76 from $5.04-$5.16 due to a $2.43-per-share charge related to its Terns Pharmaceuticals acquisition. This is an example of 'acquisition-related charges' that can negatively impact short-term earnings.
Pfizer, on the other hand, tightened its revenue range to $60.5 billion-$62.5 billion after sales increased 3% to $15.03 billion, and reported adjusted earnings per share of $0.77 compared to the expected $0.68.