Merck's $1.34B Loss Obscures Strong Underlying Results

The pharmaceutical giant Merck & Co. reported a $1.34 billion GAAP loss for its second quarter of 2026, but the company's underlying results were stronger than expected.

When stripping out a $5.7 billion one-time charge tied to Merck's acquisition of Terns Pharmaceuticals, the company's revenue grew 5% to $16.6 billion in Q2 2026.

Merk raised its full-year revenue guidance to $66.3 billion to $67.3 billion, from an earlier range of $65.1 billion to $66.1 billion, due to strong sales of its pulmonary hypertension drug Winrevair and Keytruda's continued international demand.