AI-extracted from the 10-Q filed 2026-08-07 — Q2 2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Sales rose 5% to $16.6B, but a $5.7B IPR&D charge for the Terns acquisition drove R&D to $9.7B and a $1,335M net loss.
Biggest Revenue Drivers
Pharmaceutical$14,760M
Growth in oncology and cardiometabolic and respiratory, partially offset by declines in diabetes and infectious diseases.
Animal Health$1,775M+8% YoY
Livestock up 8% on ruminant and poultry demand; companion animal up 7% on new product launches.
Biggest Revenue Drivers
Total revenue: $16.6B+5% YoY
Pharmaceutical$14,760M
Growth in oncology and cardiometabolic and respiratory, partially offset by declines in diabetes and infectious diseases.
Within Pharmaceutical
Keytruda/Keytruda Qlex$8,366M+5% YoY
U.S. higher net pricing and increased demand across earlier-stage indications; international demand in urothelial and endometrial cancer.
Winrevair$588M+75% YoY
Continued uptake in the U.S. and early launch uptake in certain international markets, particularly Japan and Europe.
Januvia/Janumet$429M-31% YoY
Lower U.S. sales from competitive pressure and lower net pricing; lower demand in China and generic competition internationally.
Animal Health$1,775M+8% YoY
Livestock up 8% on ruminant and poultry demand; companion animal up 7% on new product launches.
Largest Expense Items
Research and development$9,741M
Higher charges for business development, including $5.7B for Terns; partly offset by $200M Blackstone funding reduction.
Cost of sales$4,395M+24% YoY
Higher intangible amortization of $984M, Verona Pharma inventory step-up of $83M, and $184M of restructuring expenses.
Selling, general and administrative$2,904M+10% YoY
Higher administrative costs including IT investments, higher promotional and selling costs supporting launches, and unfavorable foreign exchange.
Restructuring costs$151M-73% YoY
Separation and other costs under the 2024 and 2025 restructuring programs.
Margins: Gross margin fell to 73.5% from 77.5%, primarily on higher intangible amortization, higher inventory write-downs (mainly vaccines), increased restructuring costs, and Verona Pharma inventory step-up, partly offset by favorable product mix.
Watch Items from the Filing
Keytruda/Keytruda Qlex is $8,366M of $16,607M total sales; Merck expects Keytruda to be selected for government price setting effective January 1, 2029.
Januvia and Janumet lost U.S. exclusivity May 2026, Janumet XR July 2026, and Bridion ($497M, +8%) lost U.S. exclusivity July 2026.
IRS Notices of Proposed Adjustment would raise the transition tax by roughly $1.3 billion plus about $260 million of penalties, excluding interest.
German court awarded Halozyme a preliminary injunction prohibiting subcutaneous pembrolizumab sales in Germany; appeal hearing set for November 19, 2026.
China sales fell to $408M from $446M; Gardasil shipments to China only resumed on a limited basis with immaterial 2026 revenue expected.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Williams David MichaelEVP,Chief Info&Digital OfficerOption exercise · Aug 5, 2026
Maraldo David R.EVP & Pres. MMDOption exercise · Aug 5, 2026
Baker Douglas M JrDirectorGrant or award · May 29, 2026
Craig Pamela J.DirectorGrant or award · May 29, 2026
Congress trading in MRK
101 transactions in MRK reported by 38 members of Congress under the STOCK Act, most recent trade Sep 24, 2026. Reported transactions, not recommendations.
About Merck & Co., Inc. (MRK): stock profile, AI score and financials
Merck & Co., Inc. (MRK) stock profile, AI quality score, and SEC EDGAR financial data, a Healthcare sector company. 13F Pro's AI-powered ranking engine scores MRK at 60.0/100 on a composite quality score built from its SEC filings, placing it at rank #886 of 2,925 stocks — the top half of the AI-ranked universe. MRK scores in the top quartile across earnings quality (97.6), revenue scale (97.6), free cash flow (78.5). Areas of concern include profitability (34.0) and revenue growth (35.5), which score below median versus the broader universe. Shareholder dilution risk is elevated at 49.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Merck & Co., Inc. reports quarterly revenue of $16.6B, net income of $-1.3B, an operating margin of -4.1%. Top institutional holders of MRK by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. 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.