Merck Reports Strong Q2 Growth Amid Regulatory Milestones

Merck & Co., Inc. reported its second-quarter 2026 financial results, highlighting key regulatory and clinical milestones across its diverse pipeline. The company's chairman and CEO, Robert M. Davis, stated, 'We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches.'

The FDA approval of LIPFENDRA marks a significant milestone in the company's nearly 70-year legacy in cardiovascular disease. This achievement is part of a broader portfolio transformation as Merck brings forward the next wave of innovation.

In terms of financial performance, the company reported a GAAP loss per share of $0.54 and non-GAAP loss per share of $0.13 for the second quarter of 2026. The decrease in gross margin was primarily due to higher amortization of intangible assets and inventory write-downs.

Notably, Merck's research and development expenses increased by 142% year-over-year to $9.7 billion, largely driven by a $5.7 billion charge for the acquisition of Terns Pharmaceuticals, Inc. The company's sales grew 5% year-over-year, primarily driven by growth in oncology as well as cardiometabolic and respiratory.