Merck shares have gained 5.6% over the past month, driven by a strong second-quarter 2026 performance that beat earnings and sales estimates, yet analysts have slashed their 2026 earnings forecast from $3.81 to $2.78 per share over the last 30 days. Second-quarter revenue rose 5% to $16.61 billion, led by a 4% increase in Keytruda sales to $8.4 billion and contributions from new products Winrevair, Welireg, and Capvaxive, partially offset by declining Gardasil sales. The company raised its 2026 revenue outlook but lowered adjusted EPS guidance to include costs from the Terns acquisition, while also facing generic erosion for Januvia and Janumet after their May 2026 U.S. patent expiries. Merck expects Keytruda to reach peak sales of $35 billion by 2028, the year its core U.S. patent expires, and is advancing a pipeline that includes a subcutaneous Keytruda formulation and a personalized cancer vaccine with Moderna. The stock has risen 24.4% year-to-date, outperforming the industry, sector, and S&P 500, but trades at a forward price-to-earnings ratio of 18.73, above the industry average of 18.52 and its five-year mean of 12.86.
Merck & Company IncStrong Q2 beat and raised revenue outlook, though EPS guidance cut due to Terns acquisition.
Moderna IncMentioned as partner in personalized cancer vaccine with Merck.
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