Merck & Co. 8-K
EarningsNew guidanceImpairment / charge
Gardasil slump tempers KEYTRUDA and Animal Health gains; Cidara acquisition charge weighs on 2026 non-GAAP EPS outlook
Filed 2026-02-03 06:38 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
FY2025 results with FY2026 outlook. Sales grew modestly as oncology and Animal Health gains were partly offset by a steep decline in Gardasil/Gardasil 9. Merck expects 2026 non-GAAP EPS of $5.00–$5.15, including a one-time Cidara acquisition charge of about $3.65 per share.
Key Figures
Fourth-quarter results:
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Sales | $16.4B | $15.6B | 5% |
| Net income attributable to Merck, GAAP | $2.96B | $3.74B | -21% |
| Net income attributable to Merck, non-GAAP | $5.09B | $4.37B | 16% |
| Diluted EPS, GAAP | $1.19 | $1.48 | -20% |
| Diluted EPS, non-GAAP | $2.04 | $1.72 | 19% |
Full-year results:
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Sales | $65.0B | $64.2B | 1% |
| Net income attributable to Merck, GAAP | $18.3B | $17.1B | 7% |
| Net income attributable to Merck, non-GAAP | $22.5B | $19.4B | 16% |
| Diluted EPS, GAAP | $7.28 | $6.74 | 8% |
| Diluted EPS, non-GAAP | $8.98 | $7.65 | 17% |
- Sales growth was 4% excluding foreign exchange in Q4 and 2% for FY2025. Q4 strength in oncology and cardiometabolic and respiratory products was partly offset by lower vaccine sales; full-year KEYTRUDA sales rose 7% to $31.7B, while Gardasil/Gardasil 9 fell 39% to $5.23B. Animal Health sales increased 8% to $6.35B.
- Merck completed its Cidara acquisition for a total transaction value of approximately $9.2B. The expected one-time charge is approximately $9.0B, or $3.65 per share, with about $0.30 per share in related financing and operational costs.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | $65.5B–$67.0B; includes ≈1% positive foreign-exchange impact | — | — |
| Gross margin, non-GAAP | FY2026 | ≈82% | — | — |
| Operating expenses, non-GAAP | FY2026 | $35.9B–$36.9B; includes ≈$9.0B Cidara charge | — | — |
| Other expense, net, non-GAAP | FY2026 | ≈$1.3B expense | — | — |
| Effective tax rate, non-GAAP | FY2026 | 23.5%–24.5% | — | — |
| EPS, non-GAAP | FY2026 | $5.00–$5.15; includes ≈$3.65 per-share Cidara charge and ≈$0.10 positive foreign-exchange impact | — | — |
| Diluted share count | FY2026 | ≈2.48B | — | — |
Investor Takeaways
- Merck’s FY2026 sales and non-GAAP EPS against their guided ranges will show whether growth offsets the expected Cidara-related charge.
- FDA action on the WINREVAIR application is expected by 9/21/2026; the KEYTRUDA applications have PDUFA dates in H2 2026.
The summary is written by an AI model reading the filing.
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