Merck Raises Revenue Guidance After Q2 Earnings Beat

Merck & Company (6MK) recently released its Q2 2026 earnings report, showing a largely positive commercial and scientific story. The company reported core revenue growth of 5% in Q2, with several strong product performances contributing to the increase. KEYTRUDA sales were up 4%, driven by uptake in earlier-stage cancers and metastatic indications, while WELIREG sales grew 67% due to international launch uptake and increased U.S. use.

The company also reported meaningful vaccine and pneumococcal momentum, with GARDASIL sales reaching $1.2 billion, up 3%, and CAPVAXIVE sales increasing by 40%. Merck received FDA approval for LIPFENDRA, the first oral PCSK9 inhibitor, which is expected to reduce LDL levels when added to statin.

Despite these positives, the company reported material one-time charges from the Terns acquisition, resulting in a GAAP loss and driving a volatile tax rate, margin, and expense pressure. Management emphasized pipeline derisking, continued launches, and long-term opportunity, while acknowledging short-term impacts from the acquisition.