Merck & Co., Inc. (NYSE:MRK) Releases FY 2026 Earnings Guidance

Posted by Grant Hamersma on Aug 4th, 2026

Merck & Co., Inc. (NYSE:MRK – Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 2.660-2.760 for the period, compared to the consensus estimate of 3.420. The company issued revenue guidance of $66.3 billion-$67.3 billion, compared to the consensus revenue estimate of $66.7 billion.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Weiss Ratings cut Merck & Co., Inc. from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, May 15th. Wall Street Zen cut Merck & Co., Inc. from a “buy” rating to a “hold” rating in a report on Monday, July 20th. CICC Research started coverage on Merck & Co., Inc. in a research report on Wednesday, June 24th. They set an “outperform” rating and a $138.00 price objective on the stock. UBS Group raised their price objective on Merck & Co., Inc. from $130.00 to $145.00 and gave the company a “buy” rating in a report on Monday, April 13th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $142.00 target price on shares of Merck & Co., Inc. in a report on Wednesday, July 8th. Thirteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Merck & Co., Inc. presently has a consensus rating of “Moderate Buy” and an average price target of $134.50.

Check Out Our Latest Research Report on MRK

Merck & Co., Inc. Trading Up 1.3%

Shares of NYSE MRK traded up $1.65 during midday trading on Tuesday, hitting $129.42. 4,320,729 shares of the company traded hands, compared to its average volume of 10,769,205. Merck & Co., Inc. has a 12-month low of $77.58 and a 12-month high of $135.05. The firm has a market cap of $319.65 billion, a P/E ratio of 36.48, a P/E/G ratio of 5.17 and a beta of 0.19. The stock has a 50-day moving average price of $123.28 and a 200 day moving average price of $118.66. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.06 and a current ratio of 1.30.

Merck & Co., Inc. (NYSE:MRK – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a net margin of 13.59% and a return on equity of 27.55%. The business had revenue of $16.61 billion during the quarter, compared to analyst estimates of $16.37 billion. During the same period last year, the business posted $2.13 earnings per share. Merck & Co., Inc.’s quarterly revenue was up 5.1% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. As a group, analysts expect that Merck & Co., Inc. will post 2.74 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Tuesday, September 15th. Merck & Co., Inc.’s payout ratio is 95.77%.

Key Stories Impacting Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

Positive Sentiment: Merck reported second-quarter revenue of $16.61 billion, above the $16.37 billion consensus estimate and up 5.1% year over year. The company also posted a narrower-than-expected loss of $0.13 per share, compared with the expected $0.26 loss. Merck posts better-than-expected second-quarter results on Keytruda strength
Positive Sentiment: Keytruda remained the primary growth driver, while the newer injectable formulation reportedly generated more than $200 million above Wall Street’s forecast. Strength in oncology and other newer products helped Merck raise its full-year revenue guidance to $66.3 billion-$67.3 billion, broadly consistent with the $66.7 billion consensus. The Merck Product That Absolutely Demolished Wall Street’s Forecasts
Neutral Sentiment: Management highlighted regulatory approvals, clinical progress and a broad development pipeline, which could support longer-term growth as Merck works to diversify beyond Keytruda. Merck announces second-quarter 2026 financial results and pipeline milestones
Negative Sentiment: Merck cut its fiscal 2026 adjusted EPS guidance to $2.66-$2.76, well below the $3.42 analyst consensus. The reduction reflects acquisition-related charges, particularly costs tied to the purchase of Terns Pharmaceuticals, and overshadows the quarterly earnings beat. Merck hikes revenue outlook but cuts profit guidance due to deal charges
Negative Sentiment: The quarterly loss compares with earnings of $2.13 per share in the year-ago period, underscoring the near-term impact of acquisition and investment costs on profitability. Merck reports second-quarter loss and beats revenue estimates

Institutional Investors Weigh In On Merck & Co., Inc.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. TMB Capital Partners LLC purchased a new position in shares of Merck & Co., Inc. in the 4th quarter worth about $441,000. Axxcess Wealth Management LLC raised its holdings in Merck & Co., Inc. by 1.3% in the fourth quarter. Axxcess Wealth Management LLC now owns 66,373 shares of the company’s stock worth $6,889,000 after buying an additional 851 shares during the last quarter. Blue Sparrow LLC DE purchased a new position in Merck & Co., Inc. in the fourth quarter worth about $14,494,000. Mercer Global Advisors Inc. ADV lifted its stake in shares of Merck & Co., Inc. by 8.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 775,210 shares of the company’s stock worth $81,599,000 after buying an additional 59,159 shares in the last quarter. Finally, Blue Chip Partners LLC lifted its stake in shares of Merck & Co., Inc. by 7.2% in the fourth quarter. Blue Chip Partners LLC now owns 244,829 shares of the company’s stock worth $25,771,000 after buying an additional 16,411 shares in the last quarter. Hedge funds and other institutional investors own 76.07% of the company’s stock.

About Merck & Co., Inc.

(Get Free Report)

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.