Merck posted a $0.13 per-share loss due to a $5.7 billion charge for the Terns Pharmaceuticals acquisition but raised its 2026 revenue outlook.
Merck reported second-quarter revenue of $16.6 billion, a 5% increase year-over-year, driven by growth in oncology, animal health, and newer product launches. Excluding foreign exchange effects, revenue rose 4%.
The company recorded a $0.13 per-share loss for the quarter, primarily due to a $5.7 billion charge related to its acquisition of Terns Pharmaceuticals. KEYTRUDA sales grew 4% to $8.4 billion, while WELIREG sales surged 67%. Merck also raised its 2026 revenue outlook to a range of $66.3 billion to $67.3 billion.
New product approvals, including LIPFENDRA and WINREVAIR, contributed to the quarter’s performance. Management expressed confidence in offsetting future impacts from KEYTRUDA’s eventual loss of exclusivity.