Merck jumps as Q1 sales beat and 2026 outlook nudges higher
Merck shares are rising after Q1 2026 sales came in at $16.3 billion and the company raised/narrowed full-year 2026 guidance to $65.8–$67.0 billion in revenue and $5.04–$5.16 in non-GAAP EPS. Investors appear to be looking past a large one-time acquisition-related charge that drove a headline quarterly loss.
1. What’s moving the stock
Merck & Co. is trading higher after reporting first-quarter 2026 results and updating its full-year outlook. The company posted worldwide sales of $16.3 billion (up 5%) and lifted/narrowed 2026 expectations to $65.8–$67.0 billion of sales and $5.04–$5.16 of non-GAAP EPS, up from prior ranges disclosed earlier in 2026.
2. The key numbers investors are reacting to
The quarter showed continued demand in Merck’s core franchises, with growth driven by oncology and Animal Health alongside contributions from newer launches. Management also flagged a foreign-exchange tailwind embedded in the updated outlook, contributing about 1 percentage point to 2026 sales growth and about $0.10 per share to 2026 non-GAAP EPS using mid-April 2026 rates.
3. Why results looked messy on the surface
Despite the upbeat operating backdrop, Merck reported a quarterly loss on both GAAP and non-GAAP bases due to a large, one-time acquisition-related charge (roughly $9 billion pre-tax, cited as a $3.62-per-share impact). The market’s move suggests investors are prioritizing the beat in sales, the stronger outlook, and the durability of the company’s key franchises over the accounting hit.