Shares of Merck rose more than 2% in premarket trading on Thursday after the company reported stronger-than-expected third-quarter results and raised its 2026 profit outlook. Earnings per share came in at $2.49, surpassing analysts' estimates of $2.09. Revenue reached $18.1 billion, up 4% excluding currency effects, and also exceeded the consensus estimate of $17.28 billion.
Keytruda, Merck’s flagship cancer immunotherapy, saw sales of $8.6 billion, a 6% increase. This includes $830 million from Keytruda Qlex, the newer subcutaneous version. Another standout performer was Winrevair, a drug for pulmonary arterial hypertension, which nearly doubled its sales with a 93% increase to $694 million.
CEO Robert Davis highlighted the company’s science-led strategy, noting that recent advancements in oncology, including new data for the antibody-drug conjugate sac-TMT and the first Phase 3 validation of a therapeutic cancer vaccine, further strengthen Merck’s long-term pipeline opportunities.
Gardasil and Gardasil 9 sales rose 14% excluding currency effects to about $2 billion, while Animal Health sales increased 4% to $1.7 billion. Merck now expects 2026 earnings per share of $2.77 to $2.82, up from its previous forecast of $2.66 to $2.76. The company also narrowed its revenue outlook to $66.8 billion to $67.3 billion, with a midpoint of $67.05 billion, nearly in line with the consensus estimate of $67.04 billion.