Merck reported second-quarter 2026 revenue of $16.6 billion and a GAAP loss per share of $0.54, driven primarily by a $2.31 per-share charge related to the acquisition of Terns. Non-GAAP loss per share was $0.13 for the quarter; the company narrowed and raised its full‑year sales outlook to $66.3 billion–$67.3 billion and now expects non‑GAAP EPS of $2.66–$2.76. Quarterly results reflected continued oncology and animal health growth alongside contributions from new launches and recent acquisitions.

Financial Highlights

  • Total worldwide sales: $16.6 billion for Q2 2026 (5% growth; 4% ex‑FX).
  • GAAP net (loss) income attributable to company: $(1,335) million for Q2 2026; GAAP loss per diluted share: $(0.54).
  • Non‑GAAP net (loss) income that excludes certain items: $(330) million for Q2 2026; non‑GAAP loss per diluted share: $(0.13).
  • Reported a charge of $2.31 per share in Q2 2026 associated with the acquisition of Terns, included in both GAAP and non‑GAAP results.
  • Full‑year 2026 outlook: sales $66.3 billion to $67.3 billion; non‑GAAP EPS $2.66 to $2.76 (includes one‑time charges for Cidara and Terns totaling $5.93 per share).

Business Highlights

  • Oncology momentum: KEYTRUDA/KEYTRUDA QLEX sales $8.4 billion in Q2, with uptake in earlier‑stage indications (TNBC, cervical, head & neck, bladder) and expanded approvals including combinations with WELIREG, Padcev and Trodelvy.
  • New product performance and launches: WINREVAIR generated $588 million in Q2 (75% growth year‑over‑year) with continued U.S. uptake and early international launches; LIPFENDRA received FDA approval as the first once‑daily oral PCSK9 inhibitor.
  • Pipeline and regulatory progress: Positive Phase 3 TroFuse‑005 sac‑TMT results in endometrial cancer; positive Phase 3 results for once‑weekly islatravir/lenacapavir HIV regimen (in collaboration with Gilead); multiple FDA approvals and breakthrough designations across oncology and cardiometabolic programs.
  • Acquisitions and portfolio expansion: Completed acquisition of Terns (adds MK‑4208 and other assets) and completed prior acquisition activity including Verona Pharma; announced Animal Health acquisition expanding poultry portfolio.
  • Animal Health growth: Animal Health sales of $1.8 billion in Q2 (8% growth), driven by both Livestock and Companion Animal portfolios and new product contributions (BRAVECTO line +7%).

Original SEC Filing:

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