Merck (MRK) is preparing to release its third-quarter 2026 earnings on October 29, before the market opens. Analysts expect sales of $17.23 billion and earnings of $2.12 per share. Over the past 30 days, earnings estimates for 2026 have dropped from $2.77 to $2.65 per share, while 2027 estimates have decreased from $9.61 to $9.26 per share.
The company has a strong track record of exceeding earnings expectations, with an average surprise of 18.76% over the past four quarters. However, its current Earnings ESP is -0.99%, and it holds a Zacks Rank #5 (Strong Sell). Key drivers for top-line growth include the blockbuster cancer drug Keytruda, new products like Winrevair, Welireg, and Capvaxive, and contributions from the Animal Health segment.
Keytruda sales are projected to reach $7.46 billion, driven by strong demand in earlier-stage and metastatic indications. However, sales of Gardasil and other vaccines are expected to decline due to weak demand in key markets. The Animal Health segment is anticipated to see increased sales for both livestock and companion animal products.
Merck's shares have risen 33.6% this year, outperforming the industry's 17.2% increase. The stock is reasonably priced with a forward P/E ratio of 17.40, slightly below the industry average of 19.03. Despite its reliance on Keytruda, Merck is diversifying its portfolio through acquisitions and expanding its drug pipeline to ensure long-term growth.