Merck raised its revenue outlook for 2026 and reported strong second-quarter growth from new products.
Merck reported a net loss of $1.34 billion for the second quarter, but the pharmaceutical giant beat second-quarter estimates and raised its revenue outlook for 2026. The company reported $16.61 billion in revenue for the quarter, a 5% increase from the same period a year earlier. While the company beat estimates, the administration announced a one-time charge of $5.7 billion related to the acquisition of Terns Pharmaceuticals and a $9 billion charge related to the acquisition of Cidara Therapeutics. These costs impacted thes adjusted profit outlook, which was lowered to a range of $2.66 to $2.76 per share. Merck is aggressively acquiring companies to offset generic competition for blockbuster drugs like Keytruda. The drug Keytruda generated $8.37 billion in sales for the second quarter, exceeding analyst expectations. Other new products like Winrevair and Capvaxive also showed strong growth, showing the company's strategy to replenish revenue as original patents expire. The company's animal health business also performed well, posting sales of $1.78 billion for the second quarter, which exceeded analyst estimates.