Merck & Co., Inc. Reports Mixed Second-Quarter 2025 Results

Merck & Co., Inc. (NYSE: MRK) has released its financial results for the second quarter of 2025, showcasing a mix of growth and challenges across its product lines. The company also provided guidance for the remainder of the year, focusing on strategic acquisitions and cost-saving initiatives.

Merck & Co., Inc. Reports Mixed Results for Q2 2025

Merck & Co., Inc. reported total worldwide sales of $15.8 billion for the second quarter of 2025, marking a 2% decrease from the same period in 2024. This decline was noted both nominally and after accounting for foreign exchange impacts. Despite this overall decrease, certain areas of the business, such as oncology and animal health, showed significant growth. Sales of KEYTRUDA, a leading oncology product, reached $8.0 billion, reflecting a 9% increase driven by strong global demand across various cancer indications.

In contrast, sales of GARDASIL/GARDASIL 9 vaccines declined by 55%, primarily due to reduced demand in China and the aftermath of a national catch-up immunization program in Japan. The company’s animal health division reported sales of $1.6 billion, an 11% increase attributed to higher demand for livestock products and the acquisition of the Elanco aqua business.

When comparing the actual performance against expectations, Merck’s non-GAAP earnings per share (EPS) was $2.13, exceeding the anticipated EPS of $2.01. However, total sales matched the expected $15.8 billion, indicating a mixed performance. The GAAP EPS was reported at $1.76, a decrease from $2.14 in the previous year, influenced by higher operating expenses and restructuring costs.

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Merck Narrows Full-Year 2025 Sales Expectations to $64.3-$65.3 Billion

Looking ahead, Merck has narrowed its full-year 2025 sales expectations to between $64.3 billion and $65.3 billion. This adjustment reflects the company’s strategic focus on optimizing its portfolio and reinvesting in growth areas. The non-GAAP EPS guidance has been set between $8.87 and $8.97, accounting for a $0.15 per share negative impact from foreign exchange fluctuations.

Merck’s guidance does not include the anticipated effects of its planned acquisition of Verona Pharma, expected to close in the fourth quarter of 2025. This acquisition aims to bolster Merck’s cardio-pulmonary pipeline with the addition of Ohtuvayre, a novel treatment for chronic obstructive pulmonary disease (COPD). The company also announced a multiyear initiative to achieve approximately $3.0 billion in annual cost savings by the end of 2027, which will be reinvested into strategic growth areas.

These initiatives are part of Merck’s broader strategy to maintain its position as a leader in the biopharmaceutical industry. The company continues to prioritize research and development, with significant investments in its pipeline and manufacturing capabilities. As Merck navigates the remainder of the year, its focus on innovation and strategic investments will be crucial in achieving its financial objectives and delivering value to shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.