Merck's Meteoric Rise: 95.25% Gain in Just One Year

Merck's stock price has shown remarkable growth over the past decade, rising from $1,000 to $3,395. However, a closer look at the data reveals that most of this gain occurred in just one year, with the stock increasing by 95.25% over the last 12 months.

The company's flagship product, Keytruda, has been a major driver of this growth, expanding from metastatic disease to 13 earlier-stage indications. In the second quarter of 2026, Keytruda sales grew 4% to $8.4 billion, contributing to Merck's total revenue of $16.6 billion.

While some products have struggled, including Gardasil sales in China, which fell to zero in 2025, Merck has responded by making strategic acquisitions, including the purchase of Verona Pharma and Cidara. The company's pipeline also shows promise, with positive Phase 3 data for sac-TMT.

CEO Rob Davis describes this period as 'more of a hill than a cliff,' suggesting that while there may be challenges ahead, Merck is well-positioned to continue growing. With a forward P/E of 15 and a decade-long history of dividend growth, the company's fundamentals look strong.