Merck

MRK Q1 2025 Earnings

Reported Apr 24, 2025 at 6:45 AM ET · SEC Source

Q1 25 EPS

$2.22

BEAT +3.98%

Est. $2.14

Q1 25 Revenue

$15.53B

BEAT +1.29%

Est. $15.33B

vs S&P Since Q1 25

+16.5%

BEATING MARKET

MRK +48.4% vs S&P +31.8%

Market Reaction

Did MRK Beat Earnings? Q1 2025 Results

Merck kicked off 2025 with a solid first-quarter beat, posting non-GAAP EPS of $2.22 against a consensus estimate of $2.13, a 3.98% beat, while revenue of $15.53 billion edged past the $15.33 billion estimate despite a 1.6% year-over-year decline. Th… Read more Merck kicked off 2025 with a solid first-quarter beat, posting non-GAAP EPS of $2.22 against a consensus estimate of $2.13, a 3.98% beat, while revenue of $15.53 billion edged past the $15.33 billion estimate despite a 1.6% year-over-year decline. The headline story was a tale of two franchises: KEYTRUDA continued its steady expansion, growing 4% to $7.21 billion on broader uptake across earlier-stage cancer indications, while GARDASIL sales collapsed 41% to $1.33 billion as China demand cratered from $1.25 billion to just $193 million. WINREVAIR provided a meaningful counterweight, generating $280 million in its first full comparable quarter, and its Phase 3 ZENITH trial was halted early after showing a 76% reduction in a key composite endpoint. Merck maintained its full-year 2025 revenue outlook of $64.10 billion to $65.60 billion, though it trimmed non-GAAP EPS guidance to $8.82 to $8.97, reflecting a one-time charge tied to a new Hengrui Pharma licensing deal and roughly $200 million in anticipated tariff headwinds. Separately, Merck is investing $1 billion in a new Delaware biologics facility to support long-term KEYTRUDA manufacturing capacity.

Key Takeaways

  • KEYTRUDA growth driven by increased global uptake in earlier-stage indications including triple-negative breast cancer, renal cell carcinoma, and non-small cell lung cancer
  • WINREVAIR continued strong uptake since second-quarter 2024 U.S. launch
  • GARDASIL/GARDASIL 9 declined 41% primarily due to lower demand in China
  • Animal Health growth driven by higher demand for Livestock products and inclusion of Elanco aqua business acquired July 2024
  • JANUVIA/JANUMET grew 19% due to higher net pricing in the U.S.
  • WELIREG grew 62% driven by higher demand in the U.S.
  • PREVYMIS grew 19% driven by higher demand in the U.S.
  • Favorable product mix improved gross margins
  • Foreign exchange had approximately 1% negative impact on sales
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MRK YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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MRK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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MRK Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our company made strong progress to start the year, with increasing contributions from our newer commercialized medicines and vaccines and continued advancement of our pipeline.”

— Robert M. Davis, Q1 2025 Earnings Press Release