Beating estimates

Merck reported third-quarter 2026 revenue of $18.1 billion on Thursday 29 October 2026, topping analysts' average estimate of $17.3 billion, according to LSEG data. Adjusted earnings were $2.49 per share, ahead of expectations for $2.08 per share.

Keytruda sales rose 6% year-on-year to $8.6 billion, beating estimates of $8.0 billion. That includes $830 million from the new subcutaneous version, Keytruda QLEX. Gardasil sales rose 14% to just under $2 billion, versus estimates of $1.8 billion, helped by early purchases by the US Centers for Disease Control and Prevention.

Other products and guidance

Winrevair sales surged 94% to $694 million, beating expectations of $645 million. About $550 million of quarterly sales reflected favourable purchase and inventory timing in the US for Keytruda, Gardasil and Winrevair, which Merck expects largely to unwind in the fourth quarter of 2026 and in 2027.

Full-year guidance was raised, with revenue now expected at $66.8 billion to $67.3 billion, the low end up from $66.3 billion, and adjusted profit at $2.77 to $2.82 per share, up from $2.66 to $2.76. Chief Executive Robert Davis also said the January forecast of $70 billion by the mid-2030s from new products did not yet reflect recent trial successes and new assets.

Sources: Reuters