Merck beats second-quarter revenue estimates and raises 2026 revenue outlook despite acquisition costs.
Merck reported second-quarter results that exceeded analyst expectations, with total revenue reaching $16.61 billion, a 5% increase from the same period last year. The pharmaceutical giant beat estimates for its flagship cancer drug, Keytruda, which generated $8.37 billion in sales. Notably, the new injectable version of Keytruda, Keytruda Qlex, significantly outperformed projections, bringing in $463 million. While Merck beat revenue targets, the administration of the company's finances reflects a heavy investment in growth. The company reported a net loss of $1.34 billion for the quarter, primarily due to one-time charges related to the acquisitions of Terns Pharmaceuticals and Cidara Therapeutics. However, excluding these costs, Merck posted an adjusted loss of only 13 cents per share, which beat the expected loss of 27 cents per share. Looking forward, Merck raised its 2026 revenue guidance to a range of $66.3 billion to $67.3 billion. The company is aggressively pursuing acquisitions to offset generic competition and replenish revenue from aging blockbuster drugs.