Merck Q3 2026 earnings: mixed

Merck's sales rose 5% in the third quarter of 2026 to $18.1 billion, but profit fell: costs and interest grew faster than sales, and large deal and restructuring charges pulled reported profit well below the company's adjusted figure. Even so, Merck raised its profit forecast for the year and narrowed its sales range upward, helped by a lower expected tax rate. ¹

Against what analysts expected

The analysts' average forecast, five estimates collected by Nasdaq's earnings calendar, was $2.12 a share; Merck's adjusted figure of $2.49 was above it while its figure under standard accounting rules, $2.04, was below it, so whether the quarter came in above or below depends on whether acquisition and restructuring costs are counted. ¹²

The strong points

Sales grew 5% on a year ago to about $18.1 billion, so the fall in profit did not come from weaker demand. ¹
Leaving out acquisition and restructuring costs, what Merck keeps of each dollar of sales after the direct cost of making its medicines barely moved, at 81.4 cents. ¹

The weak points

Profit per share fell even though sales rose: on the company's own adjusted measure it was down 3%, to $2.49. ¹
Selling and administrative costs rose 10%, twice as fast as sales. ¹
Interest costs jumped to $546 million in the quarter from $327 million a year earlier. ¹

What the company expects

Merck raised its forecast for adjusted earnings per share this year to $2.77–$2.82, from $2.66–$2.76, even after absorbing a new $0.12 charge. ¹
Merck now expects sales of $66.8–$67.3 billion for the year, narrowing the range and raising its bottom end. ¹

Our verdict on the quarter

A mixed report. An ordinary quarter in which sales grew but profit fell, set against a raised forecast for the year, though that raise leans partly on a lower expected tax rate.

The results as published

Notes

Merck's results release, 29 October 2026: sec.gov. ↩
Nasdaq's earnings calendar, 29 October 2026. ↩

Merck earnings: third quarter 2026