What is the market's earnings forecast for Merck next quarter?

What were the key takeaways from Merck’s earnings call?

What factors drove the changes in Merck's revenue and profit?

What does Merck do and what are its main business segments?

What is Merck's latest dividend and current dividend yield?

Did Merck beat or miss consensus estimates last quarter?

What guidance did Merck's management provide for the next earnings period?

What were the key takeaways from Merck's earnings call?

- **Revenue Growth**: Q3 2025 revenue $17.3 billion (+4% YoY), driven by 8% oncology sales growth and new product launches like ENFLONSIA ($79M initial stocking). Early-stage KEYTRUDA sales exceed 25% of total.
- **Pipeline Breakthroughs**: 80 Phase III trials advancing, including enlicitide (PCSK9 inhibitor) Phase III success and tulisokibart expansion into dermatology. Verona Pharma acquisition adds $50B+ pipeline value.
- **Strategic Investments**: $70B U.S. manufacturing expansion. 2026 operating expenses $25.9-26.4B to fund pipeline, offsetting headwinds from generic entries.
- **Key Launches**: KEYTRUDA QLEX targeting 30-40% patient adoption by 2026. ENFLONSIA poised for significant RSV season impact. OHTUVAYRE and BRAVECTO QUANTUM driving 2026 growth.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue for Q3 2025 was $17.3 billion, up 4% year-over-year (3% excluding FX). Oncology sales grew 8% to $8.1 billion, driven by KEYTRUDA and WELIREG. Early-stage cancer treatments contributed over half of KEYTRUDA's growth.
- **Pipeline Momentum**: 80 Phase III trials across oncology, immunology, and cardiovascular diseases. Notable advancements include enlicitide (PCSK9 inhibitor) and tulisokibart (TL1A targeting ADCs). Verona Pharma acquisition adds $50 billion+ commercial potential by mid-2030s.
- **Strategic Initiatives**: $70 billion+ U.S. manufacturing investments. Engaged with U.S. administration to balance patient affordability with fair foreign pricing. KEYTRUDA QLEX subcutaneous injection launched, targeting 30-40% patient adoption within 18-24 months.

**【CFO Financial Commentary】**
- **Earnings Performance**: Non-GAAP EPS of $2.58, driven by oncology and animal health growth. Full-year 2025 guidance: $64.5-65 billion revenue, $8.93-8.98 EPS (midpoint $8.96). 2026 outlook includes $25.9-26.4 billion operating expenses, reflecting pipeline investments.
- **Product Mix**: Gross margin 81.9% (up 1.4ppt) due to favorable product mix. ENFLONSIA initial stocking of $79 million, WINREVAIR sales $360 million. GARDASIL decline 25% (3% ex-China) due to Japan cohort expiration.
- **Risk Management**: 2026 headwinds include DIFICID and BRIDION generic entries, JANUVIA price impact. Offset by new launches (OHTUVAYRE, BRAVECTO QUANTUM) and pipeline expansion.

**【Q&A Highlights】**
- **Business Development**: CEO reaffirmed focus on $1-15 billion deals with scientific value. Verona Pharma deal exemplifies strategy to accelerate pipeline through strategic acquisitions.
- **Pipeline Progress**: Phase III enlicitide trial success (LDL reduction 58%) and tulisokibart expansion into dermatology/rheumatology. WELIREG Phase III data expected in 2026 for OS benefit in RCC.
- **Product Launches**: ENFLONSIA initial feedback positive, with $75 million VFC seeding order. KEYTRUDA QLEX adoption supported by commercial contracting strategy.
- **Policy Updates**: CEO optimistic about MFN negotiations with U.S. administration, aiming to lower patient costs while maintaining R&D investment sustainability.

Merck & Co., Inc. (MRK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MRK

MRK fundamentals

You can ask Aime