Merck & Co. 8-K
EarningsGuidance loweredImpairment / charge
Terns acquisition charge drove losses and a lower EPS outlook, while KEYTRUDA QLEX contributed to oncology growth.
Filed 2026-08-04 06:47 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with revised FY2026 guidance. Sales grew 5% as oncology and Animal Health gains, including initial KEYTRUDA QLEX sales, offset declines in some products. Merck reported losses largely reflecting the Terns acquisition charge, completed the $6.8B acquisition, and received FDA approval for LIPFENDRA.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales | $16.6B | $15.8B | 5% |
| Net loss attributable to Merck & Co., Inc. (GAAP) | $(1.34)B | $4.43B | n/m |
| Net loss attributable to Merck & Co., Inc. (non-GAAP) | $(330)M | $5.37B | n/m |
| Diluted EPS (GAAP) | $(0.54) | $1.76 | n/m |
| Diluted EPS (non-GAAP) | $(0.13) | $2.13 | n/m |
- Sales growth reflected oncology and cardiometabolic and respiratory products, plus Animal Health; KEYTRUDA/KEYTRUDA QLEX sales were $8.37B (+5%, including $463M from KEYTRUDA QLEX), WINREVAIR sales were $588M (+75%), and Animal Health sales were $1.78B (+8%).
- GAAP and non-GAAP EPS included a $2.31 per-share Terns acquisition charge. Merck completed the Terns acquisition for $6.8B, adding investigational MK-4208.
- FY2026 non-GAAP outlook includes one-time Cidara acquisition charges of $9.0B ($3.62 per share) and Terns charges of $5.7B ($2.31 per share), plus ≈$0.12 per share for Terns financing and advancing MK-4208.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | $66.3B-$67.3B | $65.8B-$67.0B | Raised and narrowed |
| Gross margin (non-GAAP) | FY2026 | ≈81% | ≈82% | Lowered |
| Operating expenses (non-GAAP) | FY2026 | $42.0B-$42.7B | $36.0B-$36.8B | Raised |
| Other expense, net (non-GAAP) | FY2026 | ≈$1.4B expense | ≈$1.3B expense | Raised |
| Effective income tax rate (non-GAAP) | FY2026 | 35.0%-36.0% | 23.5%-24.5% | Raised |
| EPS (non-GAAP) | FY2026 | $2.66-$2.76 | $5.04-$5.16 | Lowered |
| Diluted share count | FY2026 | ≈2.48B | ≈2.48B | Reaffirmed |
Investor Takeaways
- FY2026 sales and non-GAAP EPS relative to the revised ranges will indicate how the business performs against the updated outlook, which includes acquisition charges.
- Merck’s oncology investor event on 10/26/2026 is the next scheduled update on its oncology strategy and programs.
The summary is written by an AI model reading the filing.
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