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Merck & Co., Inc. Reports Fourth-Quarter and Full-Year 2025 Financial Results

Last updated: February 03, 2026
Taurigo

Merck & Co., Inc., a leading global biopharmaceutical company based in Rahway, N.J., announced its financial results for the fourth quarter and full year of 2025. The results reflect a year of significant developments in both financial performance and pipeline advancements.

1. Strong Performance Despite Challenges

Robert M. Davis, chairman and CEO of Merck, expressed pride in the company's achievements, stating, "In 2025, we continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients around the world." He highlighted the strong demand for Merck’s innovative portfolio, particularly for the company’s flagship product, KEYTRUDA, as well as contributions from new product launches in cardiometabolic and respiratory treatments.

Financial Summary

Merck's financial results for the fourth quarter and the full year demonstrate resilience, with total sales reaching $16.4 billion for Q4 and $65.0 billion for the full year, marking a 5% and 1% increase year-over-year, respectively. However, the firm experienced a decline in GAAP net income for the fourth quarter, which fell by 21% to $2.96 billion, compared to $3.74 billion in the previous year.

Key Financial Metrics

$ in millions, except EPS amounts Fourth Quarter 2025 Fourth Quarter 2024 Change Full Year 2025 Full Year 2024 Change
Sales $16,400 $15,624 5% $65,011 $64,168 1%
GAAP Net Income $2,963 $3,743 -21% $18,254 $17,117 7%
Non-GAAP Net Income $5,088 $4,372 16% $22,513 $19,444 16%
GAAP EPS $1.19 $1.48 -20% $7.28 $6.74 8%
Non-GAAP EPS $2.04 $1.72 19% $8.98 $7.65 17%

Product Performance Highlights

The sales performance of Merck's key products varied significantly. While KEYTRUDA sales rose to $8.37 billion in the fourth quarter, marking a 7% increase, GARDASIL/GARDASIL 9 sales plummeted by 34% to $1.03 billion, primarily due to lower demand in China and Japan. Other notable product performances included:

  • JANUVIA/JANUMET: Sales increased by 3% to $501 million, driven by higher pricing in the U.S.
  • WINREVAIR: Achieved remarkable growth of 133%, with sales of $467 million, reflecting strong uptake in the U.S. market.
  • Animal Health: Sales grew by 8% to $1.5 billion, underpinned by robust demand for livestock products.

Expense Overview

Merck's expenses reflected the company's ongoing investments in R&D and operational restructuring. Research and Development (R&D) expenses in Q4 reached $3.9 billion, a decrease of 15% compared to Q4 2024. The reduction was largely attributed to lower charges for business development activities.

Pipeline Advancements

Merck made significant strides in its pipeline, announcing positive late-stage trial results from 18 Phase 3 trials and entering 21 new Phase 3 studies. Noteworthy regulatory achievements included:

  • FDA approval for KEYTRUDA in combination with Padcev for treating muscle-invasive bladder cancer.
  • Positive topline results from Phase 3 trials for various investigational treatments, including new therapies for HIV and cardiometabolic conditions.

2. Looking Ahead: 2026 Financial Outlook

Merck provided a positive outlook for 2026, expecting sales between $65.5 billion and $67.0 billion and a non-GAAP EPS range of $5.00 to $5.15. This projection includes the impact of a one-time charge related to the acquisition of Cidara Therapeutics.

Conclusion

Merck & Co., Inc. continues to embody its commitment to advancing healthcare through innovative solutions and a diverse pipeline. The company's robust performance in 2025, despite some challenges, positions it well for future growth and value creation for shareholders. Investors and stakeholders are encouraged to stay updated as Merck executes its strategic initiatives and navigates the evolving biopharmaceutical landscape.

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