Merck Q1 2026 Earnings Beat Estimates, Raises EPS Guidance
Merck exceeded Q1 2026 expectations, with Keytruda sales surging 15%. The company raised its annual EPS guidance but tightened its revenue outlook, signaling caution for H2.
Key Numbers
Merck & Co., Inc. (NYSE: MRK) reported first-quarter 2026 results that surpassed analyst estimates, driven by strong growth of its blockbuster cancer drug Keytruda. Revenue came in at $12.5 billion, above the consensus of $12.2 billion, while earnings per share (EPS) of $2.45 beat the $2.30 estimate.
Key Financial Results
| Metric | Q1 2026 | Consensus | YoY Change |
|---|---|---|---|
| Revenue | $12.5B | $12.2B | +8% |
| EPS | $2.45 | $2.30 | +12% |
| Net Income | $3.8B | - | +10% |
Highlights from the Report
Merck attributed the beat to Keytruda, which saw a 15% year-over-year sales increase to $5.2 billion. Gardasil and Lynparza also contributed positively.
Forward Guidance
The company raised its full-year 2026 EPS guidance to $8.50-$8.70 (from $8.40-$8.60) but narrowed its revenue guidance to $48.5-$49.5 billion (from $48.5-$50.0 billion), indicating caution for the second half.
Stock Impact
MRK shares rose 1.2% in pre-market trading following the announcement. The stock is up approximately 10% year-to-date.
What This Means for Investors
Merck's results demonstrate the strength of its core business, but the narrowed revenue guidance may raise questions about growth sustainability. Focus remains on Keytruda's performance as patent expirations approach.
Frequently Asked Questions
Found this useful? Share it