Merck Cuts Profit Forecast Amid Charges from Recent Acquisitions

Pharmaceutical giant Merck has cut its full-year profit forecast due to charges tied to two recent acquisitions. The company anticipates adjusted earnings per share between $2.66 and $2.76 for all of 2026, a significant pullback from its earlier guidance of $5.04 to $5.16.

The revised forecast includes a one-time charge of $2.31 per share for the acquisition of Terns Pharmaceuticals, which closed in May, as well as roughly $0.12 per share to finance that deal and advance Terns's cancer drug.

Merck also recorded a second-quarter net loss of $1.34 billion, or $0.54 per share, swinging from net income of $4.43 billion, or $1.76 per share, a year ago. The company's quarterly revenue came in at $16.61 billion, a 5% rise year over year.

Merck's Keytruda and its newer injectable form, Keytruda Qlex, together totaled $8.37 billion, up 5% year over year. Other products also showed growth in the quarter, including Winrevair and Capvaxive.