Merck Q3 2026 Earnings Rise on Keytruda Strength
Merck Q3 2026 earnings showed a guidance raise after strong KEYTRUDA QLEX and Winrevair sales, a catalyst likely to support investor sentiment and flows.
KEY TAKEAWAYS
- Merck reported $18.1 billion in Q3 revenue and $2.49 non-GAAP EPS.
- Merck raised FY 2026 sales to $66.8-$67.3 billion and non-GAAP EPS to $2.77-$2.82.
- KEYTRUDA and KEYTRUDA QLEX sales were $8.6 billion and Winrevair sales reached $694 million.
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Merck & Co., Inc. (MRK) reported stronger third-quarter 2026 earnings on Oct. 29, 2026, raising its full-year sales and non-GAAP earnings per share (EPS) guidance. The company cited momentum from KEYTRUDA QLEX, KEYTRUDA, and Winrevair as supporting its broader pipeline.
Quarter Results and Guidance
Merck posted worldwide sales of $18.1 billion for the quarter ended Sept. 30, 2026, a 5% increase year over year. Pharmaceutical sales rose 4% to $16.3 billion, while Animal Health sales also grew 4% to $1.7 billion. Adjusted non-GAAP EPS was $2.49. The company raised its full-year 2026 sales outlook to $66.8 billion–$67.3 billion and its non-GAAP EPS guidance to $2.77–$2.82, increasing the lower bound by $500 million from the prior range.
The EPS outlook includes a one-time charge of approximately $400 million, or 12 cents per share, related to a global licensing agreement with SciBrunch. Reported gross margin declined to 72.9% from 77.7%, driven by higher amortization of intangible assets, restructuring costs, and production expenses.
Key Products and Approvals
KEYTRUDA and KEYTRUDA QLEX generated $8.6 billion in sales, with KEYTRUDA QLEX contributing $830 million, up 6% year over year excluding foreign exchange. Growth reflected uptake in earlier-stage indications such as triple-negative breast cancer, cervical cancer, head and neck cancer, and bladder cancer, along with increased demand in metastatic urothelial cancer. About $550 million of the quarter’s growth resulted from purchases made earlier than expected.
Winrevair sales reached $694 million, up 93% year over year excluding foreign exchange. The U.S. Food and Drug Administration updated Winrevair’s label to include Phase 3 HYPERION trial data, which showed that adding Winrevair to background therapy reduced the risk of clinical-worsening events in patients diagnosed with pulmonary arterial hypertension within the prior 12 months.
Merck highlighted continued strength in oncology and animal health, plus contributions from newer products including Winrevair. The company flagged Keytruda’s patent-expiration exposure as a longer-term strategic issue but did not quantify its financial impact.
"Sales growth reflects continued strength in oncology and animal health, plus contributions from other products in broader portfolio, including WINREVAIR," Merck said in its release.
