Merck (MRK) Q3 Earnings Beat with $18.09B Revenue and Profit Boost

Published on 10/29/2026 · Source: cnbc.com

#MRK #Earnings #Pharmaceuticals #Guidance #Biotech

Merck (MRK) Q3 Earnings Beat with $18.09B Revenue and Profit Boost

AI Summary

Summarized by AI from the source below

Merck (MRK) reported third-quarter 2024 results that exceeded analyst expectations, driven by strong sales of its immunotherapy drug Keytruda and its newer injectable form, Keytruda Qlex. The company posted adjusted earnings per share (EPS) of $2.49, beating the $2.08 expected by analysts. Revenue for the quarter totaled $18.09 billion, up 5% from a year earlier and surpassing the projected $17.31 billion. Net income was $5.07 billion, or $2.04 per share, compared with $5.79 billion, or $2.32 per share, in the same quarter last year.

Sales of Keytruda reached $8.60 billion, well above the $7.73 billion expected. The new Keytruda Qlex generated $830 million in sales, exceeding the $649 million estimate and marking its highest quarterly revenue since its 2025 launch. This injectable form is part of Merck's strategy to transition patients from the original intravenous drug to support future growth as Keytruda's original version faces patent expirations starting in 2028. Merck also reported strong sales in other products, including Winrevair, which grew 93% year over year to $694 million, and the Gardasil vaccine, which posted $2 billion in sales, beating estimates.

Merck raised its full-year adjusted profit outlook to a range of $2.77 to $2.82 per share, up from $2.66 to $2.76 previously. The guidance includes a one-time $400 million charge related to a licensing agreement but narrows its 2026 revenue forecast to between $66.8 billion and $67.3 billion from a prior range of $66.3 billion to $67.3 billion. These results reflect Merck's efforts to grow through product innovation and acquisitions to offset upcoming generic competition.

This matters to investors as Merck demonstrates its ability to maintain revenue growth and profitability through Keytruda's new formulations and pipeline products, supporting adjusted earnings and narrowing revenue guidance for 2026. The company's updated profit forecast and strong Keytruda sales trajectory are key measures of its future financial health in a competitive pharmaceutical market.

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Our take

Opinion from the Newsstocks AI desk, not investment advice

Merck's results show effective growth through product innovation, especially with Keytruda Qlex sales exceeding expectations. The raised earnings outlook amid a narrowed revenue range suggests cautious optimism. The risk remains from patent expirations, but current sales trends support sustained profitability.

Key numbers

Q3 Revenue: $18.09 billion
Adjusted EPS Q3: $2.49
Keytruda Sales Q3: $8.60 billion
Keytruda Qlex Sales Q3: $830 million

What could help

Strong sales of the newer Keytruda Qlex injection support future growth beyond original drug patents.
Raised profit outlook indicates confidence in maintaining earnings despite upcoming competition.

What could hurt

Upcoming patent expirations on Keytruda original version by 2028 may lead to generic competition.
One-time $400 million charge impacts near-term profit guidance.

The background

Earnings reports show a company's recent financial performance and guide investors on future expectations. Pharmaceuticals rely on product sales and patent protections for revenue.

Questions readers ask

What were Merck's third-quarter earnings results?

Merck reported $2.49 adjusted earnings per share and $18.09 billion in revenue, beating analyst expectations of $2.08 EPS and $17.31 billion revenue.

How did Keytruda sales perform in the quarter for Merck?

Keytruda sales reached $8.60 billion, exceeding the expected $7.73 billion, with the newer injectable form Keytruda Qlex generating $830 million in sales.