Merck Drops 3.05% on Earnings Miss, China Vaccine Delay

Generated by AI AgentAinvest Pre-Market Radar
Tuesday, Jul 29, 2025 7:03 am ET1min read
Aime RobotAime Summary

- Merck's Q2 2025 revenue fell 2% to $15.81B, slightly above estimates, while adjusted EPS dropped to $2.13, driving a 3.05% pre-market stock decline.

- The company announced a $3B cost-cutting plan and narrowed full-year revenue guidance to $64.3B-$65.3B, maintaining EPS guidance at $8.87-$8.97.

- Merck delayed Gardasil HPV vaccine supply to China until at least year-end, citing regulatory and market challenges that may impact Asia-Pacific revenue.

On July 29, 2025, Merck's stock experienced a 3.05% drop in pre-market trading.

Merck reported its second-quarter earnings for 2025, with revenue of $15.81 billion, a 2% decrease year-over-year, slightly above market expectations of $15.77 billion. The company's adjusted earnings per share for the quarter were $2.13, down from $2.28 in the same period last year.

maintained its full-year earnings guidance of $8.87 to $8.97 per share, previously $8.82 to $8.97. The company also announced a restructuring plan aimed at saving $3 billion in costs. Additionally, Merck updated its full-year revenue guidance to $64.3 billion to $65.3 billion, narrowing from the previous range of $64.1 billion to $65.6 billion.

Merck has stated that it will not begin supplying its HPV vaccine, Gardasil, to the Chinese market until at least the end of the year. This decision is likely influenced by regulatory hurdles and market dynamics, which could impact the company's revenue streams from the Asia-Pacific region.

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