Merck & Co. (NYSE: MRK), known as MSD outside the United States and Canada, reported third-quarter 2026 worldwide sales of $18.1 billion, representing a 5% increase year-over-year, or 4% excluding foreign exchange impacts, while narrowing and raising its full-year financial outlook.
The Bottom Line
- Worldwide sales reached $18.1 billion for the quarter, beating consensus expectations amid strong performances in oncology and newer portfolios.
- Non-GAAP earnings per share landed at $2.49, incorporating a $0.12 per share one-time charge tied to a global license agreement with SciBrunch Therapeutics Co., Ltd.
- Management narrowed and raised the midpoint of its full-year 2026 sales guidance to a range between $66.8 billion and $67.3 billion, alongside an adjusted EPS outlook of $2.77 to $2.82.
Keytruda Portfolio Strength and New Product Uptake Drive Revenue
The pharmaceutical giant posted pharmaceutical sales of $16.3 billion during the third quarter, marking a 4% rise compared to the same period in 2025. Growth was anchored by the company’s flagship immunotherapy KEYTRUDA, which generated $8.60 billion in sales, a 6% increase. This total includes $830 million in sales for KEYTRUDA QLEX, the subcutaneous formulation launched in late 2025 designed to help defend market share ahead of patent expirations.
According to CNBC, the subcutaneous injection’s performance surpassed analyst expectations as the company works to transition patients from the original intravenous version. Beyond oncology, pulmonary arterial hypertension treatment WINREVAIR delivered $694 million in sales, representing a 93% surge compared to the prior-year quarter. Meanwhile, GARDASIL and GARDASIL 9 vaccines brought in substantial sales, climbing 14% due to favorable public-sector purchasing patterns and higher net pricing in the U.S.
Earnings, Operating Expenses, and SciBrunch Licensing Impacts
GAAP net income for the third quarter stood at $5.07 billion, resulting in diluted earnings per share of $2.04. On a non-GAAP basis, net income reached strong levels, or $2.49 per share. Both GAAP and non-GAAP metrics absorbed a $0.12 per share charge resulting from a licensing agreement with SciBrunch.
Research and development expenses climbed 7% to $4.5 billion on a GAAP basis, reflecting the $400 million SciBrunch licensing charge and elevated clinical development spending. These investments were partially offset by a $200 million reduction in R&D expenses under a funding agreement with Blackstone Life Sciences. Selling, general, and administrative expenses rose 10% to $2.9 billion, driven by administrative overhead and promotional campaigns supporting ongoing product launches.
| Financial Metric | Q3 2026 | Q3 2025 | Percentage Change (Ex-FX) |
|---|---|---|---|
| Total Worldwide Sales | $18,085M | $17,276M | +5% (+4% ex-FX) |
| GAAP EPS | $2.04 | $2.32 | -12% (-13% ex-FX) |
Pipeline Milestones and Full-Year 2026 Financial Outlook
Chief Executive Officer Robert M. Davis emphasized that recent scientific data presented at the European Society for Medical Oncology (ESMO) Congress 2026 helps de-risk the company’s late-phase pipeline. These presentations included pivotal Phase 3 data for sacituzumab tirumotecan in endometrial cancer and the intismeran autogene therapeutic cancer vaccine developed in collaboration with Moderna. CFO Caroline Litchfield stated, For 2027, we see it as another year of investment as we invest behind our expansive pipeline and our new product launches to drive long-term growth.
Executive Jannie Oosthuizen noted, We feel really strong about our position in the U.S.
regarding the trajectory toward the objective of achieving 30% to 40% adoption for Keytruda Qlex by the end of 2027 following the permanent J-code received on April 1.
Reflecting confidence in these ongoing developments and commercial execution, management updated its full-year guidance parameters. BigGo Finance noted that Merck narrowed and raised its full-year worldwide sales expectation to a range of $66.8 billion to $67.3 billion. Simultaneously, the company upgraded its non-GAAP earnings per share guidance to a band between $2.77 and $2.82, factoring in the aforementioned SciBrunch licensing charge as the company prepares for upcoming patent cliffs later in the decade.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
