MRK Exceeds Revenue and Profit Estimates in Q3 2025

Merck & Co., Inc. (MRK.US) reported strong financial results for the third quarter of 2025, with worldwide sales reaching $17.28 billion, marking a 4% increase from the third quarter of 2024. The company's non-GAAP EPS was $2.58, representing a substantial 64% year-over-year increase. These results exceeded analyst revenue estimates of $16.98 billion and analyst EPS estimates of $2.36.

Strong Segment Performance

The pharmaceutical segment was a primary driver of growth, with sales increasing by 4%. This was largely fueled by oncology, cardiovascular, and diabetes products, partially offset by declines in vaccines. Notably, KEYTRUDA sales surged by 10% to $8.1 billion due to continued strong global demand and robust uptake in earlier-stage indications.

WINREVAIR sales demonstrated exceptional growth, increasing by 141% to $360 million, primarily driven by continued uptake in the U.S. CAPVAXIVE, launched in Q3 2024, contributed $244 million in sales. Animal Health sales also grew by 9% to $1.6 billion, primarily from livestock products.

Key Product Developments and Approvals

Merck achieved several significant regulatory and clinical milestones during the quarter, enhancing its pipeline and portfolio. The FDA approved KEYTRUDA QLEX injection for subcutaneous use across all solid tumor indications, making it the first and only subcutaneously administered immune checkpoint inhibitor. The company also announced positive topline results from the Phase 3 CORALreef Lipids trial for enlicitide decanoate, a potential first oral PCSK9 inhibitor for hypercholesterolemia.

Furthermore, the FDA approved an update to the U.S. product label for WINREVAIR, expanding its indication for pulmonary arterial hypertension based on positive Phase 3 ZENITH trial results. Merck also completed the acquisition of Verona Pharma, adding OHTUVAYRE, an FDA-approved maintenance treatment for COPD, to its cardio-pulmonary portfolio.

Updated Full-Year 2025 Financial Outlook

Merck updated its full-year 2025 financial outlook, now expecting worldwide sales to be between $64.5 billion and $65.0 billion. The company also raised and narrowed its expected non-GAAP EPS range to be between $8.93 and $8.98. This revised outlook reflects operational improvements, a more favorable estimated tax rate, and lower estimated costs related to the impact of tariffs.

The updated non-GAAP EPS outlook includes a benefit from an amended collaboration agreement with AstraZeneca related to Koselugo, partially offset by an estimated negative impact from the Verona Pharma acquisition and incremental foreign exchange effects. The midpoint of the revised non-GAAP EPS range represents a net improvement of $0.04 per share compared to the prior outlook.