Merck posts better-than-expected second-quarter results on Keytruda strength

Separately, Merck said its experimental drug, **tulisokibart**, met the main goal in a mid-stage trial for hidradenitis suppurativa, an inflammatory skin condition, but failed another separate trial involving patients with a type of lung disease. Merck raised its **2026 revenue forecast** to **$66.3 billion to $67.3 billion**, from a previous range of **$65.8 billion to $67.0 billion**. The midpoint is slightly above the LSEG consensus forecast of about **$66.8 billion**. The company now expects **2026 adjusted earnings of $2.66 to $2.76 per share** compared to its previous expectation between **$5.04 and $5.16**. The cut includes charges of **$3.62 per share** for the acquisition of Cidara and **$2.31 per share** for the acquisition of Terns. Sales of immunotherapy **Keytruda**, the world's top-selling prescription medicine, rose **5%** to **$8.37 billion** in the quarter, including **$463 million** from its newer subcutaneous formulation, Keytruda QLEX. That exceeded analysts' estimate of **$8.07 billion**. Merck's outlook is becoming clearer ahead of Keytruda's generic competition, with more than **$70 billion** in potential sales from its products by the mid-2030s, said Scotiabank analyst Louise Chen. Stronger-than-expected QLEX uptake contributed to the Keytruda beat, Chief Financial Officer Caroline Litchfield said in an interview. > "We're at double-digit of QLEX as a portion of the total business in the United States, and we are very much on a path that takes us to the 30% to 40% adoption by the end of 2027," she said. **Gardasil**, Merck's cancer-preventing HPV vaccine, generated sales of **$1.17 billion**, slightly above the **$1.15 billion** analyst consensus. Sales of its measles, mumps, rubella and chickenpox vaccines fell **3%** to **$592 million** in the quarter, below analysts' estimates of **$608 million**. The company said the decline was due primarily to lower U.S. demand. > "The data that we access suggest that the overall vaccines market in the United States has declined," Litchfield said, adding that the mix of vaccines the company makes is faring quite well within that declining market. Animal health sales rose **8%** to **$1.78 billion**, slightly ahead of Wall Street projections of **$1.75 billion**. Merck reported higher-than-expected second-quarter sales on Tuesday and raised its full-year revenue forecast on the strength of its top-selling cancer treatment Keytruda. The U.S. drugmaker reported quarterly revenue of **$16.61 billion**, up **5%** from a year earlier and above analysts' average estimate of **$16.36 billion**, according to LSEG data. Merck reported a loss for the quarter due to a **$5.7 billion** charge from its acquisition of cancer drug developer Terns Pharmaceuticals. The company's reported loss in the quarter was **13 cents per share**, including the **$2.31 per share** charge from the deal. Analysts had expected an adjusted loss per share of **27 cents**.

Merck posts better-than-expected second-quarter results on Keytruda strength

Pipeline update and raised outlook

Keytruda and vaccines drive results

Second-quarter revenue beats estimates

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