Merck : Icon 1Q26 Merck Earnings Presentation
MRK
Published on 04/30/2026 at 06:48 am EDT
First-Quarter 2026 Sales and Earnings
Merck & Co., Inc., Rahway, N.J., USA
April 30, 2026
Strategy and Business Update
Robert M. Davis
Chairman and Chief Executive Officer
Financial Results and Outlook
Caroline Litchfield
Agenda
Executive Vice President and Chief Financial Officer
Research Update
Dr. Dean Y. Li
Executive Vice President and President, Research Laboratories
Question & Answer Session
Agenda
This presentation of Merck & Co., Inc., Rahway, N.J., USA (the "company") includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company's patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2025 and the company's other filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (https://www.sec.gov).
Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA
Strategy and Business Update
Robert M. Davis
Chairman and Chief Executive Officer
Achieved significant pipeline and regulatory progress:
Oncology
FDA accepted four filings across oncology portfolio including new BLA for ifinatamab deruxtecan1 for priority review in SCLC
Infectious Diseases
FDA approved once-daily IDVYNSO, a new, two-drug single-tablet regimen of doravirine and islatravir for certain adults with virologically suppressed HIV-1
Cardiometabolic & Respiratory
Presented results from new studies evaluating enlicitide and
WINREVAIR at ACC 2026
Ophthalmology
Initiated pivotal Phase 2b/3 studies evaluating MK-8748, a TIE-2/VEGF bispecific antibody, in NVAMD
Animal Health
¹Weber Shandwick/KCR Research, 2020 / AMO 2019
FDA approved NUMELVI, the first and only second-generation JAK inhibitor for allergic dermatitis in dogs
Q1 Worldwide Sales
$16.3B
+5% nominal
+3% ex-exchange
Strength in Oncology and Animal Health
Increasing contributions from new launches
Science-driven business development that strengthens and complements hematology pipeline
Adds TERN-701, an investigational next-generation, allosteric TKI
for treatment of certain patients with chronic myeloid leukemia
Potential best-in-class profile with opportunity to further improve depth and duration of response in certain patients
Multibillion dollar commercial opportunity and growth driver in the next decade, creating shareholder value
6
1. Transaction expected to close in May
Announced strategic acquisition1 of Terns Pharmaceuticals
Advancing Diverse & Expansive Pipeline
~80 Phase 3 studies ongoing
Launching New Growth Drivers
Expect >20 new growth drivers, almost all of which have blockbuster potential
Executing Business Development
Actively pursuing additional science-driven, value-creating transactions
Significant commercial opportunity
Potential commercial opportunity of >$70B1 from new growth drivers alone by the mid-2030s
1. Non-risk adjusted annual sales by the mid-2030s 7
Transforming our portfolio with next wave of innovation
Financial Results and Outlook
Caroline Litchfield
Executive Vice President and Chief Financial Officer
+5% nominal
+3% ex-exchange
+5% growth
+2% ex-exchange
+13% growth
+6% ex-exchange
Q1 worldwide performance driven by demand for our innovative portfolio
KEYTRUDA family1 sales of $8.0B increased 8%, driven by strong demand from metastatic indications and robust uptake in earlier-stage cancers
Growth driven by usage in tumors predominantly affecting women, including those with certain breast and cervical cancers
Increased use of KEYTRUDA in combination with enfortumab vedotin in locally advanced or metastatic urothelial cancer
In the U.S., growth benefitted by ~$250M due to timing of wholesaler purchases
KEYTRUDA QLEX sales of $128M in 1Q26 following launch in 3Q25; permanent J-code effective April 1st
$8.0B
+8%
$7.2B
+6%
$6.9B
+24%2
1Q24 1Q25 1Q26
Oncology: KEYTRUDA continues to benefit patients and drive growth
$199M
+43%
$137M
+63%
+102%
WELIREG sales grew 43%, driven by continued launch uptake in international markets and higher demand in the U.S.
Lynparza1 alliance revenue grew 6%, primarily due to higher demand in the U.S. and many international markets
Lenvima2 alliance revenue declined 2%
$85M
1Q24 1Q25 1Q26
$341M
+6%
$312M
+8%
$292M
+7%
1Q24 1Q25 1Q26
$258M
+2%
$256M
-2%
$255M
+10%
Oncology: Continued impact for patients across broad portfolio
GARDASIL sales of $1.1B decreased 22%, driven by lower demand in China and Japan, consistent with expectations
In the U.S., sales declined 10% primarily due to the timing of CDC purchases, partially offset by price
CAPVAXIVE1 sales of $142M increased 31% driven by uptake from ongoing launches in certain international markets
In the U.S., growth was driven by increased demand from both retail pharmacies and non-retail customers, partially offset by a reduction in wholesaler inventory
$2.2B
+17%
$1.3B
-40%
$1.1B
-22%
1Q24 1Q25 1Q26
$142M
+31%
$107M
1Q24 1Q25 1Q26
Vaccines & Infectious Diseases: Protecting lives globally
WINREVAIR1 sales of $525M driven by continued growth in new patient starts and total prescriptions
In the U.S., >1,600 new patients prescribed and
>29,500 total prescriptions dispensed
Ex-U.S., making progress with approvals and reimbursement
OHTUVAYRE2 sales of $131M reflect strong growth in total prescriptions
Sequential sales decline due to Medicare deductible resets and CMS reimbursement change
$525M
+87%
$280M
1Q24 1Q25 1Q26
$71M3
$131M
1Q24 1Q25 1Q26
Cardiometabolic & Respiratory: Continuing to drive impact for patients with successful ongoing launches
Animal Health sales increased 6% to $1.8B
Livestock sales grew 8%, driven by higher demand for ruminant and poultry products as well as price
$1.8B
+6%
$1.6B
+10%
$1.5B
+4%1
Companion Animal sales grew 4% driven by new product launches and price, partially offset by lower demand for other products in portfolio due to lower vet visits
1Q24 1Q25 1Q26
Animal Health: Strong growth driven by livestock and companion animal
Q1 2026
Q1 2025
Change
Change Ex-FX
Sales
$16.3
$15.5
+5%
+3%
Non-GAAP Gross Margin
81.9%
82.2%
-0.3 pts
+0.1 pts
Non-GAAP Operating Expenses2
$15.2
$6.1
N/M
N/M
Non-GAAP Tax Rate
-43.5%
14.2%
N/M
N/A
Non-GAAP (Loss) / Earnings Per Share3,4
$(1.28)
$2.22
N/M
N/M
1. The company is providing certain 2026 and 2025 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors' understanding of the company's results because management uses non-GAAP results to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, annual employee compensation, including senior management's compensation, is derived in part using a non-GAAP pretax income metric. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to the earnings release. 2. Q1 2026 non-GAAP results include a charge of
Q1 2026 non-GAAP financial results summary1
$ in billions, except LPS / EPS amounts
Prior Guidance
Updated Guidance
Key Assumptions
Revenue
$65.5B to $67.0B
$65.8B to $67.0B
Assumes ~1 percentage point positive impact from FX
Implies +1% to +3% nominal (+0% to +2% ex-FX)
Non-GAAP
Gross Margin Rate
~82.0%
~82.0%
Non-GAAP
Operating Expenses1, 2
$35.9B to $36.9B
$36.0B to $36.8B
Includes $9B charge related to acquisition of Cidara
Other (Income) / Expense
~$1.3B of expense
~$1.3B of expense
Includes financing costs related to acquisitions of Verona and Cidara
Tax Rate
~23.5% to 24.5%
~23.5% to 24.5%
Includes impact of non-tax deductible charge for Cidara
Shares Outstanding
~2.48B
~2.48B
Assumes ~3B of share repurchases
Non-GAAP EPS1,2
$5.00 to $5.15
$5.04 to $5.16
Includes ~$3.62 negative impact related to upfront charge for acquisition of Cidara
Assumes ~$0.10 positive impact from FX
Updated 2026 financial outlook
KEYTRUDA
ENFLONSIA
SG&A
In the U.S., expect headwind from timing of wholesaler purchases in 3Q
Anticipate minimal sales in 2Q given expected seasonality and continued high levels of RSV mAb inventory in marketplace
Expect expenses to increase over remainder of year due to investment in launches
Key modeling considerations
Capital allocation order of priority
$9.1
$3.1
$2.1
$1.0
$0.9
Augmented our pipeline and portfolio with value-enhancing business development while investing in our pipeline and business as well as returning cash to shareholders
2
After-Tax R&D
CapEx Dividends Paid
Business Development (ex-divestitures)
Share Repurchase
Remain committed to balanced capital allocation strategy
Q1 Spend ($ in billions)1
Research Update
Dr. Dean Y. Li
Executive Vice President and President, Research Laboratories
Enlicitide
Phase 3 results support ambition to bring first approved oral PCSK9i designed to have antibody-like
LDL-C lowering to a broad population globally
-58.2
Percent LDL-C reduction from baseline as demonstrated:
-57.11
-59.62
2026 AHA/ACC Multisociety Guidelines3
Updated guidelines support early and aggressive treatment to reduce lifetime cumulative LDL-C exposure and restore concrete targets
Key goals include:
<55 mg/dL for very high risk ASCVD
<70 mg/dL for high risk ASCVD and primary prevention patients with PREVENT score >10
Most patients with ASCVD will qualify for an LDL-C goal of <55 mg/dL
WINREVAIR
Totality of evidence from Phase 2 CADENCE study provides strong rationale for Phase 3 development in CpcPH-HFpEF
Robust primary endpoint4 results at 0.3mg/kg dose:
PVR
-1.02 Wood units
6MWD5
+20.3 meters
TTCW5
Prolonged TTCW (HR: 0.18)
Additional findings from exploratory secondary endpoints at 0.3mg/kg dose include:
-64.6
1. Per statistical analysis plan 2. Reanalysis (post-hoc) conducted to remove imputed biologically impossible baseline values 3. Blumentahl, et al., (2026) Circulation, 153. Published online March 13, 2026.
Important updates across cardiometabolic and respiratory portfolio
KEYTRUDA
KEYNOTE-B96: FDA and EC
approved KEYTRUDA in combination with paclitaxel, with or without bevacizumab, for treatment of PD-L1+ cisplatin-resistant ovarian cancer
KEYNOTE-B151: Findings showed perioperative KEYTRUDA in combination with enfortumab vedotin reduced risk of EFS events by 47% and risk of death by 35% vs neoadjuvant chemotherapy2 for treatment of cisplatin-eligible MIBC
- Sixth study of KEYTRUDA-based regimen to demonstrate OS in earlier stage cancer
PDUFA date August 17, 2026
WELIREG
LITESPARK-022: WELIREG plus
KEYTRUDA demonstrated a 28% reduction in the risk of disease recurrence or death compared to KEYTRUDA alone in adjuvant RCC setting
PDUFA date June 19, 2026
LITESPARK-011: WELIREG plus
Lenvima3 demonstrated a 30% reduction in the risk of disease progression or death versus cabozantinib in previously treated advanced RCC with disease progression on or after anti PD-1/PD-L1 therapy
PDUFA date October 4, 2026
I-DXd4
Announced priority review for BLA filing based on Phase 2 IDeate-Lung01 and Phase 1/2 IDeate-Pan Tumor01 trials for extensive-stage SCLC with disease progression on or after platinum-based chemotherapy
PDUFA date October 10, 2026
Continuing to advance cancer care with broad portfolio and pipeline
Chronic myeloid leukemia
Bone marrow cancer driven by BCR::ABL fusion gene
Advances in treatment have transformed CML to chronic disease that can require life-long treatment
Significant unmet need remains for improved efficacy, safety and convenience
Quality of life and long-term tolerability increasingly important goals as treatment duration extends
TERN-701
Potent, oral, next-generation allosteric BCR::ABL TKI
Highly selective, with a novel binding site
Potential best-in-class efficacy
Terns Pharmaceuticals acquisition1 expands hematology pipeline
HIV
FDA and MHLW approved IDVYNSO for treatment of HIV-1 infection in adults who are virologically suppressed
First two-drug regimen without an HIV integrase strand inhibitor to demonstrate non-inferior efficacy and a generally comparable safety profile versus bictegravir / emtricitabine / tenofovir alafenamide
Important new treatment option as health needs of adults living with HIV change over time
RSV
Presented positive top line results for ENFLONSIA for prevention of RSV disease in infants and children under two years of age at increased risk over two seasons based on Phase 3 SMART study at RSV-VW-26
EC approved for newborns and infants during their first season
Building on our strong legacy in combatting infectious diseases
MK-8748
Potential first-in-class bispecific inhibiting VEGF and directly activating Tie2 pathway
Initial Phase 1/2a RIOJA data demonstrated MK-8748 was well tolerated with no drug-related AEs or SAEs and rapid, sustained structural and functional responses
Initiated two Phase 2b/3 studies, MALBEC and
TORRONTES, for treatment of NVAMD
Mechanism of action
Antibody binds Tie2 and VEGF aiming to stabilize blood retinal barrier and reduce free VEGF
Progressing late-stage ophthalmology pipeline
Oncology
ASCO Investor Event
Monday, June 1st
KEYTRUDA Family1
KEYNOTE-B152 PDUFA date August 17th
WELIREG
LITESPARK-022 PDUFA date June 19th
LITESPARK-011 PDUFA date October 4th
DXd3
IDeate-Lung013 PDUFA date October 10th
HIV
Islatravir/Lenacapavir4
Readout of Phase 3 ISLEND-1 and ISLEND-2 trials for HIV treatment
Cardiometabolic & respiratory
WINREVAIR
HYPERION PDUFA date September 21st
Enlicitide
CNPV process progressing
Immunology
Tulisokibart
PCD in August for Phase 3 ATLAS trial in UC
PCD in May for Phase 2 ATHENA trial in SSc-ILD
Ophthalmology
MK-3000
PCD in September for Phase 3 BRUNELLO trial in DME
MK-8748
Readout of Phase 2a RIOJA trial in NVAMD, DME, and RVO
Significant late-stage pipeline milestones over next six months
Q&A
Robert M. Davis
Chairman and Chief Executive Officer
Caroline Litchfield
Executive Vice President and Chief Financial Officer
Dr. Dean Y. Li
Executive Vice President and President, Research Laboratories
Peter Dannenbaum
Senior Vice President, Investor Relations
Appendix
27
Q1 2026
Q1 2025
Change
Change Ex-FX
Sales
$16.3
$15.5
+5%
+3%
Operating Expenses (SG&A and R&D)1
$15.3
$6.2
N/M
N/M
Tax Rate
-20.1%
13.9%
N/M
N/A
GAAP (Loss) / Earnings per Share2
$(1.72)
$2.01
N/M
N/M
Q1 2026 GAAP financial results summary
$ in billions, except LPS / EPS amounts
Capital allocation order of priority
Over the past 12 months
$24
$21
$18
$15
$12
$9
$6
$3
$0
$20.5
$12.7
$8.2
$4.8
$3.8
1
After-Tax R&D CapEx Dividends Paid Business
2
Development
Share Repurchase
Well-positioned balance sheet with capacity to fund additional value-enhancing business development opportunities
(ex-divestitures)
Capital investments
2025 to 2029
Committed to the dividend
+5%
+5%
Dollars per Share
Over 5 years, including more than $12B in the U.S.
+6%
+5%
+11%
+7%
+6%
+15%
+2% +2%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026E
Executing upon balanced capital allocation strategy
Phase 2
Phase 3
Under regulatory review
Oncology
MK-1022 (patritumab deruxtecan)1
Biliary Bladder Cervical Endometrial Esophageal Gastric
HCC
Melanoma NSCLC
Ovarian Pancreatic Prostate
MK-1084 (calderasib)1 Solid Tumors
MK-2400 (ifinatamab deruxtecan)1
Biliary Bladder Breast Cervical Endometrial HCC
HNSCC
Melanoma NSCLC
Ovarian Pancreatic Solid Tumors
MK-2870 (sacituzumab tirumotecan)1
Biliary Esophageal
Neoplasm Malignant Pancreatic
MK-3120
Bladder
KEYTRUDA (MK-3475)
Prostate
KEYTRUDA QLEX (MK-3475A)
Hematological Malignancies (U.S.)
MK-5684 (opevesostat) Breast
Endometrial Ovarian
MK-5909 (raludotatug deruxtecan)1
Cervical Endometrial Gastric NSCLC
RCC SCLC
MK-6070 (gocatamig)1 SCLC
WELIREG (MK-6482)
Breast
V940 (intismeran autogene)1 Bladder
RCC
Neuroscience
MK-1167
Alzheimer's Disease
MK-2214
Alzheimer's Disease
Cardiometabolic & Respiratory
MK-5475 PH-COPD
MK-5884A (ensifentrine + glycopyrrolate)
COPD
MK-6024 (efinopegdutide) MASH
MK-7262
Atherosclerosis
WINREVAIR (MK-7962)
Pulmonary Hypertension due to Left Heart Disease
Immunology
MK-7240 (tulisokibart) Axial Spondyloarthritis Hidradenitis Suppurativa Psoriatic Arthritis Rheumatoid Arthritis Systemic Sclerosis
MK-8690
Ulcerative Colitis
Infectious Diseases
MK-8591B (islatravir + ulonivirine)
HIV-1 Infection
Oncology
MK-1022 (patritumab deruxtecan)1
Breast
MK-1026 (nemtabrutinib) Hematological Malignancies
MK-1084 (calderasib)1 CRC
NSCLC
MK-2140 (zilovertamab vedotin)
Hematological Malignancies
MK-2400 (ifinatamab deruxtecan)1 Esophageal
Prostate SCLC (EU)
MK-2870 (sacituzumab tirumotecan)1
Bladder Breast Cervical Endometrial Gastric NSCLC
Ovarian
KEYTRUDA (MK-3475) SCLC
MK-3543 (bomedemstat) Myeloproliferative Disorders
MK-5684 (opevesostat) Prostate
MK-5909 (raludotatug deruxtecan)1
Ovarian
LYNPARZA (MK-7339)1 NSCLC
SCLC
V940 (intismeran autogene)1 Melanoma
NSCLC
Ophthalmology
MK-30004
Diabetic Macular Edema
MK-87484
Neovascular Age-Related Macular Degeneration
Vaccines
V181
Dengue Fever Virus
Cardiometabolic & Respiratory
MK-0616 (enlicitide decanoate) Hypercholesterolemia (U.S.)
Immunology
MK-7240 (tulisokibart) Crohn's Disease Ulcerative Colitis
Infectious Diseases
MK-1406
Influenza
LAGEVRIO (MK-4482)1,3 COVID-19 (U.S.)
MK-8527 HIV-1 PrEP
MK-8591A (doravirine + islatravir)
HIV-1 Infection (EU)
MK-8591D (islatravir + lenacapavir)1,2
HIV-1 Infection
Oncology
MK-2400 (ifinatamab deruxtecan)1 SCLC (U.S.)
KEYTRUDA (MK-3475)
Breast (U.S.)
Cisplatin Eligible MIBC (U.S.) Cisplatin Ineligible MIBC (EU, JPN) Ovarian (JPN)
KEYTRUDA QLEX (MK-3475A)
Breast (U.S.)
Cisplatin Eligible MIBC (U.S.)
WELIREG (MK-6482)
Clear Cell RCC Following Nephrectomy (U.S.) 1,5
Previously Treated Advanced RCC (U.S., JPN) 1
Cardiometabolic & Respiratory
MK-0616 (enlicitide decanoate)
Primary Hypercholesterolaemia or Mixed Dyslipidaemia (EU)
WINREVAIR (MK-7962)
Pulmonary arterial hypertension (U.S.)
Infectious Diseases
ENFLONSIA (MK-1654)
Respiratory Syncytial Virus (JPN)
As of April 30, 2026
Broad and innovative pipeline to address significant unmet medical needs
6MWD = 6-minute walk distance
AE = Adverse event
AHA/ACC = American Heart Association/American College of Cardiology
ASCVD = Atherosclerotic cardiovascular disease
BCR::ABL = Breakpoint Cluster Region - Abelson murine leukemia viral oncogene homolog
BLA = Biologics license application
CML = Chronic myeloid leukemia
CNPV = Commissioner's National Priority Voucher
CpcPH-HFpEF = Combined post- and pre-capillary pulmonary hypertension in heart failure with preserved ejection fraction
DME = Diabetic macular edema
EFS = Event free survival
HeFH = Heterozygous familial hypercholesterolemia
HIV-1 = Human Immunodeficiency Virus Type 1
I-DXd = Ifinatamab deruxtecan
JAK = Janus kinase
LDL-C = Low-density lipoprotein cholesterol
MAb = Monoclonal antibody
MIBC = Muscle invasive bladder cancer
NVAMD = Neovascular age-related macular degeneration
OS = Overall survival
PCD = Primary completion date
PCSK9i = Proprotein convertase subtilisin/kexin type 9 inhibitor
PD-1/PD-L1 = Programmed cell death protein-1/Programmed cell death ligand-1
PVR = Pulmonary vascular resistance
RCC = Renal cell carcinoma
RSV = Respiratory syncytial virus RVO = Retinal vein occlusion SAE = Serious adverse event SCLC = Small cell lung cancer
SSc-ILD = Systemic sclerosis associated interstitial lung disease
TIE-2 = Tyrosine kinase with immunoglobulin-like and EGF-like domains 2
TKI = Tyrosine kinase inhibitor TTCW = Time to clinical worsening UC = Ulcerative colitis
VEGF = Vascular endothelial growth factor
Acronyms
Disclaimer
Merck & Co. Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:47 UTC.