Merck raised its 2026 revenue guidance to $66.3B-$67.3B but lowered profit expectations due to acquisition charges.
Merck raised its 2026 revenue outlook to between $66.3 billion and $67.3 billion, up from a prior range of $65.8 billion to $67 billion, citing strong sales of new products. The company beat second-quarter revenue estimates, reporting $16.61 billion versus $16.36 billion expected by analysts.
However, Merck cut its adjusted earnings guidance to $2.66-$2.76 per share from $5.04-$5.16, reflecting $5.7 billion in charges tied to its acquisition of Terns Pharmaceuticals and $9 billion for the Cidara Therapeutics deal. The company posted a net loss of $1.34 billion for the quarter.
Merck is expanding through acquisitions to offset looming generic competition for drugs like Keytruda and Januvia, while betting on newer treatments, including a recently approved cholesterol-lowering pill.