In its second-quarter report, Merck announced revenue of $16.61 billion, surpassing analyst expectations of $16.36 billion, and a net loss of $1.34 billion, compared to a profit of $4.43 billion in the same quarter last year. The company raised its 2026 revenue forecast to between $66.3 billion and $67.3 billion, up from a prior estimate of $65.8 billion to $67 billion.
However, Merck cut its adjusted earnings guidance to a range of $2.66 to $2.76 per share, reflecting a one-time charge of $5.7 billion related to its acquisition of Terns Pharmaceuticals and an additional $9 billion charge from acquiring Cidara Therapeutics.
Keytruda, Merck's leading immunotherapy drug, generated $8.37 billion in sales, exceeding expectations, while newer products like Winrevair and Capvaxive also showed strong growth. This strategic focus on new products is crucial for Merck as it faces impending generic competition for some of its key drugs, including Januvia and Janumet later this year, and Keytruda in 2028