Merck & Co. (MRK) MRK Q4 Financial Results Summary
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Merck & Co., Inc. (MRK) Q4 2025 Financial Results Summary
Published on February 3, 2026, Merck & Co., Inc. announced its financial results for the fourth quarter and full year of 2025. The company reported significant developments in its pipeline, as well as a strong performance in several segments, particularly oncology and animal health.
Financial Highlights
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Fourth-Quarter Worldwide Sales: $16.4 billion (5% growth year-over-year; 4% growth excluding foreign exchange impacts)
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Full-Year Worldwide Sales: $65.0 billion (1% growth year-over-year; 2% growth excluding foreign exchange impacts)
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GAAP EPS for Q4: $1.19, down from $1.48 in Q4 2024 (20% decrease)
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Non-GAAP EPS for Q4: $2.04, up from $1.72 in Q4 2024 (19% increase)
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Full-Year GAAP EPS: $7.28, up from $6.74 in 2024 (8% increase)
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Full-Year Non-GAAP EPS: $8.98, up from $7.65 in 2024 (17% increase)
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Annual Charge for Business Development Transactions: $0.20 per share for 2025.
Key Contributors to Performance
- KEYTRUDA/KEYTRUDA QLEX Sales:
- Q4 2025: $8.37 billion (7% growth year-over-year)
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Full Year 2025: $31.68 billion (7% growth year-over-year)
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WINREVAIR Sales in Q4: $0.467 billion (133% growth year-over-year)
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CAPVAXIVE Sales: $0.279 billion in Q4 (N/M year-over-year)
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GARDASIL/GARDASIL 9 Sales: $1.031 billion in Q4 (34% decline year-over-year)
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Animal Health Sales: $6.4 billion for the full year (8% growth year-over-year; 9% growth excluding foreign exchange)
Expense Overview
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Q4 Cost of Sales: $5.55 billion (45% increase year-over-year)
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Q4 Selling, General and Administrative Expenses: $2.90 billion (1% increase year-over-year)
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Q4 Research and Development Expenses: $3.89 billion (15% decrease year-over-year)
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Q4 Other (Income) Expense, Net: $432 million (increase from $126 million in Q4 2024)
Pipeline and Business Development
- Positive Late-Stage Trial Results: Announced from 18 Phase 3 trials in 2025.
- Notable Approvals:
- FDA approved KEYTRUDA and KEYTRUDA QLEX for cancer treatment.
- Results from Phase 2b study of intismeran autogene in melanoma patients presented.
Strategic Agreements
- Reached an agreement with the U.S. government to expand access to medicines and lower costs for patients.
Dividend and Share Repurchase
- The company did not declare a quarterly dividend in this report, nor did it announce any share repurchase programs.
Full-Year 2026 Financial Outlook
- Projected Worldwide Sales: Between $65.5 billion and $67.0 billion
- Expected Non-GAAP EPS: Between $5.00 and $5.15
This release marks a significant point for Merck as it navigates through challenges and maintains robust performance across its pharmaceutical and animal health sectors, while also advancing its innovative pipeline.
CONSOLIDATED STATEMENT OF INCOME – GAAP
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)
| GAAP | 4Q25 | 4Q24 | % Change | 2025 | 2024 | % Change | |
|---|---|---|---|---|---|---|---|
| Sales | $16,400 | $15,624 | 5% | $65,011 | $64,168 | 1% | |
| Costs, Expenses and Other | |||||||
| Cost of sales | 5,551 | 3,828 | 45% | 16,382 | 15,193 | 8% | |
| Selling, general and administrative | 2,898 | 2,864 | 1% | 10,733 | 10,816 | -1% | |
| Research and development | 3,886 | 4,585 | -15% | 15,789 | 17,938 | -12% | |
| Restructuring costs | 213 | 51 | * | 889 | 309 | * | |
| Other (income) expense, net | 432 | 126 | * | 151 | (24) | * | |
| Income Before Taxes | 3,420 | 4,170 | -18% | 21,067 | 19,936 | 6% | |
| Income Tax Provision | 458 | 425 | 2,804 | 2,803 | |||
| Net Income | 2,962 | 3,745 | -21% | 18,263 | 17,133 | 7% | |
| Less: Net (Loss) Income Attributable to | (1) | 2 | 9 | 16 | |||
| Noncontrolling Interests | |||||||
| Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA | $2,963 | $3,743 | -21% | $18,254 | $17,117 | 7% | |
| Earnings per Common Share Assuming Dilution | $1.19 | $1.48 | -20% | $7.28 | $6.74 | 8% | |
| Average Shares Outstanding Assuming Dilution | 2,488 | 2,537 | 2,507 | 2,541 | |||
| Tax Rate | 13.4% | 10.2% | 13.3% | 14.1% |
CONSOLIDATED BALANCE SHEETS
(Amounts in billions)
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets | $ | $ |
| Cash and Cash Equivalents | ||
| Trade Receivables | ||
| Inventories | ||
| Other Current Assets | ||
| Total Current Assets | ||
| Non-Current Assets | ||
| Property, Plant and Equipment | ||
| Goodwill | ||
| Intangible Assets | ||
| Other Non-Current Assets | ||
| Total Non-Current Assets | ||
| TOTAL ASSETS | ||
| LIABILITIES AND EQUITY | ||
| Current Liabilities | ||
| Trade Payables | ||
| Short-Term Debt | ||
| Other Current Liabilities | ||
| Total Current Liabilities | ||
| Long-Term Liabilities | ||
| Long-Term Debt | ||
| Other Long-Term Liabilities | ||
| Total Long-Term Liabilities | ||
| TOTAL LIABILITIES | ||
| EQUITY | ||
| Common Stock | ||
| Additional Paid-In Capital | ||
| Retained Earnings | ||
| Other Comprehensive Income | ||
| Total Equity | ||
| TOTAL LIABILITIES AND EQUITY |