Merck tops quarterly estimates, hikes profit outlook as new Keytruda form shows strength

Summary

• Merck topped third-quarter estimates & hiked its adjusted profit outlook due to stronger-than-expected sales of Keytruda & its newer injectable form.
• The company now expects adjusted earnings of $2.77 to $2.82 per share, up from a previous range of $2.66 to $2.76, including a one-time $400 million charge related to a licensing agreement with SciBrunch.
• Merck narrowed its 2026 revenue guidance to $66.8 billion to $67.3 billion, up from a previous low end of $66.3 billion.
• Keytruda generated $8.60 billion in sales for the quarter, exceeding the $7.73 billion analysts expected, with $830 million attributed to the new Qlex formulation.
• The company aims to transition patients from the intravenous Keytruda version to the under-the-skin Qlex injection to defend market share before patents expire in 2028.
• Third-quarter adjusted earnings per share were $2.49 compared to $2.08 expected, while revenue reached $18.09 billion versus $17.31 billion expected.
• Net income for the quarter was $5.07 billion, or $2.04 per share, down from $5.79 billion, or $2.32 per share, in the same period last year.
• Winrevair sales rose 93% to $694 million, surpassing the $645 million analyst expectation.
• Gardasil vaccine sales reached approximately $2 billion, exceeding the $1.76 billion forecast, driven by higher U.S. demand.
• Merck's animal health business posted $1.68 billion in sales, which fell slightly below analyst estimates.