Merck & Co., Inc.(MRK)Stock Analysis
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Rank #284 of 2,879 stocksTOP 10%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
MRK Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Merck & Co., Inc. (MRK), a Healthcare sector company. 13F Pro's AI-powered ranking engine scores MRK at 70.9/100 on a 32-signal composite quality model, placing it at rank #284 of 2,879 stocks — the top 10% of the AI-ranked universe. MRK scores in the top quartile across revenue scale (98.0), balance sheet strength (82.1), free cash flow (78.9). Based on the latest XBRL financial filings (Q1 2026), Merck & Co., Inc. reports quarterly revenue of $16.3B, net income of $-4.2B, free cash flow of $2.9B. MRK trades on the NYSE exchange and files with the SEC under CIK 310158. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate MRK daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Merck & Co., Inc. directly from SEC EDGAR. Merck & Co., Inc.'s 13F Pro composite quality score has ranged between 41 and 82 since 2021, currently 70.9 — a declining long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving MRK's Business? Latest 10-Q Breakdown
AI-extracted from Merck & Co., Inc.'s 10-Q filed 2026-05-04 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Merck posted a $4.2B net loss driven by $9.0B charge for Cidara acquisition and $8.5B R&D spending on in-process research, offsetting 5% sales growth to $16.3B.
Biggest Revenue Drivers
Total revenue: $16.3B+5% YoY
Growth driven by Keytruda, Welireg, and higher Koselugo alliance revenue, partially offset by vaccine and diabetes declines
Within Pharmaceutical
Higher utilization across earlier-stage indications and increased demand in metastatic cancers; includes new subcutaneous formulation uptake
Lower demand in China due to suspended shipments and elevated channel inventory; lower CDC purchasing in U.S.
Growth in both livestock and companion animal products due to higher demand and pricing
Largest Expense Items
$9.0B charge for Cidara acquisition in-process R&D with no alternative future use; increased clinical development spending
Higher amortization of intangible assets, $83M inventory fair value step-up from Verona acquisition, $237M restructuring costs
Higher administrative costs and unfavorable foreign exchange impact
Employee separation costs and facility optimization under 2025 and 2024 restructuring programs
Margins: Gross margin declined to 74.2% from 78.0% YoY, primarily due to higher intangible asset amortization, restructuring costs, and fair value step-up of inventories from acquisitions, partially offset by favorable product mix. Operating losses reflected the $9.0B Cidara acquisition charge to R&D.
Watch Items from the Filing
- Gardasil/Gardasil 9 sales declined 19% YoY; shipments to China suspended since February 2025 with minimal expected revenue in 2026; CDC immunization schedule changes subject to ongoing litigation.
- Januvia will lose U.S. market exclusivity in May 2026 following settlement of patent litigation; Janumet and Janumet XR lose exclusivity July 2026; both products subject to IRA government price-setting.
- Bridion loses U.S. market exclusivity in July 2026; Company anticipates significant sales decline and potential discontinuation by 2027 as generic supply stabilizes.
- Company entered $6.0B delayed draw term loan in April 2026 for Terns acquisition funding and intends to refinance with long-term debt; total debt-to-liabilities ratio increased to 38.2% from 36.0%.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$16.3B
Net Income
Q1 2026
$-4.2B
Free Cash Flow
Q1 2026
$2.9B
D/E Ratio
Q1 2026
1.07
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+1.3% YoYNet Income
+6.6% YoYEPS (Diluted)
+8.0% YoYTotal Assets
+16.9% YoYTotal Debt
+32.9% YoYOp. Cash Flow
-23.3% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2019 | FY 2017 | FY 2014 |
|---|---|---|---|---|---|---|
| Revenue | $65.01B +1.3% | $64.17B +6.7% | $60.12B +53.7% | $39.12B -2.5% | $40.12B -5.0% | $42.24B |
| Net Income | $18.25B +6.6% | $17.12B +4589.6% | $365.0M -96.3% | $9.84B +311.2% | $2.39B -79.9% | $11.92B |
| EPS (Diluted) | $7.28 +8.0% | $6.74 +4714.3% | $0.14 -96.3% | $3.81 +337.9% | $0.87 -78.6% | $4.07 |
| Total Assets | $136.87B +16.9% | $117.11B +9.8% | $106.67B +26.4% | $84.40B -4.0% | $87.87B -10.6% | $98.33B |
| Total Debt | $49.30B +32.9% | $37.10B +5.7% | $35.10B +33.5% | $26.30B -4.0% | $27.41B +22.3% | $22.40B |
| Operating Cash Flow | $16.47B -23.3% | $21.47B +65.1% | $13.01B -3.2% | $13.44B +108.3% | $6.45B -19.3% | $7.99B |
AI Insight: MRK Financial Trends
Revenue growth accelerated to 3.8% in Q3 2025 but total debt surged 32% year-over-year to $49.3B by Q4 2025.
• Revenue grew from $15,775M in Q1 2024 to $16,400M in Q4 2025, with acceleration in Q3 2025 to $17,276M.
• Equity strengthened from $40,364M in Q1 2024 to $52,606M in Q4 2025, a 30% increase.
• Total debt increased dramatically from $37,100M in Q4 2024 to $49,300M in Q4 2025.
⚠ Operating cash flow volatile, dropping from $9,291M in Q3 2024 to $2,857M in Q4 2025.
⚠ Net income declined 21% year-over-year from $3,743M in Q4 2024 to $2,963M in Q4 2025.
AI Insight: MRK Ratio Trends
Merck's profitability collapsed in Q4 2025 with operating margin plunging to 20.8% from 39.0% in Q3.
• Operating margin deteriorated sharply from 39.0% in Q3 2025 to 20.8% in Q4 2025.
• ROIC dropped dramatically from 28.9% in Q3 2025 to 13.4% in Q4 2025.
• Net profit margin fell from 33.5% in Q3 2025 to 18.1% in Q4 2025.
• Debt-to-equity ratio increased from 0.80 in Q3 2025 to 0.94 in Q4 2025.
⚠ Q4 2025 marks the second-worst quarterly performance across all profitability metrics since Q3 2024.
⚠ Extreme quarterly volatility in margins suggests potential one-off items or accounting effects driving results.
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Is MRK a good stock to buy?
13F Pro's AI-powered analysis of Merck & Co., Inc. (MRK) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Healthcare sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for MRK are available on the MRK stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own MRK?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling MRK. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Merck & Co., Inc.'s investment landscape.