Merck Stock Climbs on Strong Earnings Beat and Raised Revenue Guidance

Merck stock rose 1.3% in pre-open trading after delivering a stronger-than-expected second-quarter earnings report. Revenue of $16.61 billion topped the Wall Street consensus of $16.36 billion, and an adjusted loss of 13 cents per share beat the anticipated 27-cent loss.

The beat was driven primarily by Keytruda, Merck's blockbuster cancer immunotherapy, which generated $8.37 billion in Q2 sales - up 5% year-over-year and above the roughly $8.07-$8.27 billion analyst estimate.

Merck also raised its full-year 2026 revenue guidance to a range of $66.3 billion to $67.3 billion, signaling management's confidence in the underlying business despite a $5.7 billion one-time charge tied to the Terns Pharmaceuticals acquisition.