Merck Q4 revenue misses estimates on lower Gardasil demand

Overview

• Pharmaceutical firm's Q4 revenue grew 5% but missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company highlighted progress in pipeline and acquisitions

Outlook

• Merck anticipates 2026 sales between $65.5 bln and $67.0 bln

• Company expects 2026 non-GAAP EPS between $5.00 and $5.15

• Merck anticipates a one-time charge of $3.65 per share for Cidara acquisition

Result Drivers

• ONCOLOGY SALES - Growth in oncology, especially KEYTRUDA, driven by uptake in early-stage and metastatic cancer indications

• NEW PRODUCT LAUNCHES - Significant contributions from WINREVAIR and CAPVAXIVE due to strong uptake

• GARDASIL DECLINE - Sales decline due to lower demand in China and Japan

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Merck & Co Inc is $119.50, about 5.4% above its February 2 closing price of $113.37

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwHwfXsa

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