Merck & Co. Revenue Rises 5%, Raises Guidance Amid Strong Oncology Growth

Merck & Co.'s second-quarter 2026 revenue reached $16.6 billion, up 5% year over year (4% ex-foreign exchange), with growth driven by continued oncology and animal health strength and increasing contributions from recent launches.

The company reported a loss per share of $0.13, reflecting a non-deductible charge related to the Terns Pharmaceuticals acquisition, which also pushed the quarterly tax rate to 160.3%. Gross margin declined 110 basis points to 81.1%, primarily due to higher inventory reserves.

The KEYTRUDA franchise led growth, with family sales of $8.4 billion, up 4%, including $463 million from KEYTRUDA QLEX. Broader oncology added momentum: WELIREG rose 67% to $271 million. In cardiometabolic/respiratory, WINREVAIR increased 75% to $588 million, and OHTUVAYRE contributed $204 million with a specialty-pharmacy timing benefit.

Rob Davis, Chairman, President & CEO, stated that the KEYTRUDA LOE should be a hill not a cliff, a shallow dip with a fast return to growth. On a non-risk-adjusted basis, Merck still aspires to grow through the LOE; confidence has increased with pipeline de-risking.

The company raised and narrowed revenue guidance to $66.3-$67.3 billion (2%-4% growth) and guided EPS to $2.66-$2.76 (midpoint $2.71), including the $2.31 Terns charge and roughly $0.12 of related ongoing costs.