Merck's Q2 Earnings Hit by Terns Acquisition, Pipeline Progress Continues

Merck's acquisition of Terns Pharmaceuticals has taken a toll on its bottom line, resulting in a net loss of $1.34 billion, or $0.54 per share, for Q2 2026.

The company's full-year earnings per share (EPS) guidance was lowered from between $5.04 and $5.16 to between $2.66 and $2.76 due to the acquisition cost of $2.31 per share.

Merck CEO Robert Davis expressed confidence in its pipeline, citing several trials that have read out earlier than expected, including data for sacituzumab tirumotecan (sac-TMT) in endometrial cancer.

The company is seeking approval for sac-TMT in endometrial cancer based on results from the Phase III TroFuse-005 study and plans to pursue a Commissioner's National Priority Voucher to speed up review by the FDA.