Q2 25 EPS
$2.13
BEAT +5.04%
Est. $2.03
Q2 25 Revenue
$15.81B
MISS 0.42%
Est. $15.87B
vs S&P Since Q2 25
+28.7%
BEATING MARKET
MRK +42.1% vs S&P +13.4%
Market Reaction
Did MRK Beat Earnings? Q2 2025 Results
Merck delivered a mixed second quarter, beating on the bottom line while falling just short on revenue, as a collapse in China GARDASIL sales overshadowed continued strength from its flagship cancer drug. The drugmaker posted non-GAAP EPS of $2.13, c… Read more Merck delivered a mixed second quarter, beating on the bottom line while falling just short on revenue, as a collapse in China GARDASIL sales overshadowed continued strength from its flagship cancer drug. The drugmaker posted non-GAAP EPS of $2.13, clearing the $2.03 consensus estimate by 5.04%, even as total revenue of $15.81 billion slipped 1.9% year-over-year and came in fractionally below the $15.87 billion Wall Street had expected. The story behind the numbers was largely a tale of two franchises: KEYTRUDA generated $7.96 billion in sales, up 9%, while GARDASIL plunged 55% to $1.13 billion after demand in China evaporated entirely. Restructuring charges of $649 million and a $200 million Hengrui Pharma licensing payment also weighed on GAAP results. Looking ahead, Merck narrowed its full-year 2025 sales guidance to $64.30 billion to $65.30 billion and non-GAAP EPS to $8.87 to $8.97, with the pending $10 billion acquisition of Verona Pharma and its COPD therapy Ohtuvayre excluded from that outlook.
Key Takeaways
- • KEYTRUDA 9% growth driven by strong global demand in metastatic indications and increased uptake in earlier-stage cancers
- • GARDASIL/GARDASIL 9 declined 55% primarily due to lower demand in China where sales fell to zero
- • Animal Health grew 11% driven by higher livestock demand, Elanco aqua business acquisition, higher pricing, and improved supply
- • WINREVAIR continued rapid uptake since second-quarter 2024 U.S. launch
- • Non-GAAP gross margin improved to 82.2% from 80.9% due to favorable product mix
- • R&D expenses increased 16% driven by Hengrui Pharma license payment, increased clinical development spending, and higher compensation
- • Restructuring charges of $649 million related to new multiyear optimization initiative
MRK YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
MRK Revenue by Segment
With YoY comparisons, source: SEC Filings
MRK Revenue by Geography
With YoY comparisons, source: SEC Filings
“Earlier this month, we were pleased to announce our pending acquisition of Verona Pharma, which augments our portfolio and pipeline and is another example of acting decisively when science and value align. Today, we announced a multiyear optimization initiative that will redirect investment and resources from more mature areas of our business to our burgeoning array of new growth drivers, further enable the transformation of our portfolio, and drive our next chapter of productive, innovation-driven growth. With these actions, I am confident that we are well positioned to generate near- and long-term value for our shareholders and, most importantly, deliver for our patients.”
— Robert M. Davis, Q2 2025 Earnings Press Release
MRK Earnings Trends
MRK vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MRK EPS Trend
Earnings per share: estimate vs actual
MRK Revenue Trend
Quarterly revenue: estimate vs actual
MRK Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $-1.28 | — | $16.29B | +2.77% |
| Q4 25 BEAT FY | $2.01 | $2.04 | +1.47% | $16.40B | +1.43% |
| FY Full Year | $8.94 | $8.98 | +0.49% | $65.01B | +0.36% |
| Q3 25 BEAT | $2.35 | $2.58 | +9.85% | $17.28B | +1.76% |
| Q2 25 BEAT | $2.03 | $2.13 | +5.04% | $15.81B | -0.42% |
| Q1 25 BEAT | $2.14 | $2.22 | +3.98% | $15.53B | +1.29% |