Merck Q2 Sales, Keytruda Top Estimates but FY Profit View Slashed on Deal Charges
Merck reported a narrower loss and higher revenue than expected in Q2, but cut its full-year adjusted earnings forecast due to multi-billion-dollar charges tied to the Cidara and Terns acquisitions.
Pharmaceutical giant Merck posted second-quarter results above Wall Street expectations, driven by strong performances of its oncology and vaccine franchises.
Key Q2 metrics versus estimates:
- Adjusted loss per share: $0.13 (est. $0.23)
- Revenue: $16.61 billion (est. $16.35 billion)
- Keytruda sales: $8.37 billion (est. $8.04 billion)
- Gardasil revenue: $1.17 billion (est. $1.12 billion)
- Animal Health sales: $1.78 billion (est. $1.75 billion)
The company sharply lowered its full-year adjusted earnings outlook to $2.66–$2.76 per share, compared with a prior view of $5.04–$5.16. The cut reflects $9 billion in charges linked to the Cidara deal and $5.7 billion from the Terns transaction. Merck now sees FY revenue of $66.3–$67.3 billion, slightly raised from $65.8–$67.0 billion. Adjusted gross margin is expected to be about 81%, a modest trim from the prior 82% forecast.
Source: First Squawk