Merck Narrows and Raises 2026 Outlook as Keytruda and Winrevair Lift Sales

Merck narrowed and raised its 2026 outlook on Thursday after third-quarter sales rose 5% to $18.1 billion, as growth in Keytruda and Winrevair outpaced steep declines in older medicines facing generic competition.

The drugmaker now expects full-year sales of $66.8 billion to $67.3 billion, compared with $66.3 billion to $67.3 billion previously, according to the earnings release it filed with an 8-K on Thursday. It raised its non-GAAP EPS range to $2.77 to $2.82 from $2.66 to $2.76, even after adding a one-time charge of 12 cents a share for a global license agreement with SciBrunch Therapeutics that was not previously included. The outlook also includes one-time charges of $3.62 a share for the acquisition of Cidara and $2.31 a share for the acquisition of Terns.

Earnings dip on pipeline spending

Third-quarter GAAP EPS fell 12% to $2.04 from $2.32, and non-GAAP EPS declined 3% to $2.49 from $2.58. Both figures include the SciBrunch charge, while the year-earlier quarter included a 10-cent charge for a milestone payment to LaNova Medicines.

Merck said the decline was driven mainly by higher operating expenses to advance its research pipeline and support product launches, as well as higher net interest expense, partly offset by operational strength and a lower tax rate. Research and development expenses rose 7% to $4.5 billion, including a $400 million SciBrunch charge.

"Our science-led strategy is transforming our business," Chairman and CEO Robert M. Davis said in the release.

Keytruda and Winrevair lead

Keytruda and Keytruda Qlex sales rose 6% to $8.6 billion, driven by uptake in earlier-stage indications, including triple-negative breast, cervical, head and neck and bladder cancers. Sales of Keytruda Qlex, the subcutaneous version, were $830 million.

Winrevair sales jumped 93% to $694 million on higher demand and favorable purchasing patterns in the U.S., plus launch uptake in Europe and Japan. Gardasil sales rose 14% to $1.995 billion, helped by favorable U.S. public-sector purchasing patterns and higher net pricing. Welireg grew 56% to $307 million.

Pharmaceutical sales growth benefited by about $550 million from the timing of purchases, the company said. Animal Health sales rose 4% to $1.7 billion.

Generic erosion

Older products continued to shrink. Januvia and Janumet sales fell 39% to $380 million following loss of U.S. market exclusivity, and Bridion dropped 67% to $144 million on generic competition. Lagevrio sales fell 88% to $17 million, largely on lower demand in Japan.

On the pipeline, Merck highlighted Phase 3 data presented at the ESMO Congress 2026, including results for sacituzumab tirumotecan in endometrial cancer, for which the FDA accepted a Biologics License Application for priority review, and for intismeran autogene with Keytruda in melanoma, developed with Moderna.

By the numbers

• $18.1 billion: third-quarter sales, up 5%
• $2.49: non-GAAP EPS, down 3%
• $8.6 billion: Keytruda and Keytruda Qlex sales, up 6%
• 93%: Winrevair sales growth, to $694 million
• $2.77 to $2.82: new 2026 non-GAAP EPS outlook

Sources

1. Merck Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001104659-26-119825)

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