Merck raised its annual adjusted earnings projection on Thursday after quarterly financial results exceeded Wall Street expectations, fueled by surging sales for its blockbuster cancer therapy Keytruda and an injectable version of the treatment.
The New Jersey-based pharmaceutical firm reported third-quarter revenue of $18.09 billion, representing a 5 percent increase compared to the corresponding period a year earlier, according to a corporate earnings release. The company posted quarterly net income of $5.07 billion, or $2.04 per share, down from $5.79 billion, or $2.32 per share, recorded during the third quarter of 2025.
Excluding acquisition-related expenses and restructuring charges, Merck generated adjusted earnings of $2.49 per share, CNBC reported.
Keytruda and Qlex Drive Oncology Growth
Overall revenue from Keytruda climbed to $8.60 billion for the quarter, surpassing the $7.73 billion consensus projected by analysts surveyed by StreetAccount. The total included $830 million generated by Keytruda Qlex, an under-the-skin formulation introduced in 2025 that posted its highest quarterly revenue figure to date.
Analysts tracked by StreetAccount had anticipated Qlex sales of roughly $649 million, CNBC reported. Merck has focused heavily on migrating patients to the subcutaneous shot from the traditional intravenous administration. The initiative serves as a central pillar in the company\’s effort to shield revenue before primary patents protecting the original medicine begin expiring in 2028.
“Our science-led strategy is transforming our business,” Robert M. Davis, Merck\’s chairman and chief executive officer, said in the company\’s earnings announcement, citing recent clinical progress across the late-stage cancer pipeline.
Gains Across Vaccines and Specialty Drugs
Products outside the oncology franchise also contributed to top-line growth during the three-month period ending in September, according to company filings:
- Winrevair, a medication prescribed for a rare and fatal lung disease, generated $694 million in quarterly sales, marking a 93 percent year-over-year surge and beating analyst estimates of $645 million.
- Gardasil, the vaccine preventing human papillomavirus infections and related malignancies, brought in approximately $2 billion, exceeding projections of $1.76 billion due to heightened purchasing in the U.S. market.
- The company\’s animal health division brought in $1.68 billion, finishing slightly below expectations compiled by Wall Street analysts.
The vaccine\’s domestic rebound provided relief after Merck navigated inventory backlogs and subdued demand across China throughout the previous year, CNBC reported.
Updated Annual Outlook and Future Challenges
Following the quarterly performance, Merck boosted its adjusted earnings expectation for the full 2026 fiscal year to a range between $2.77 and $2.82 per share. That guidance increased from an earlier target of $2.66 to $2.76 per share, even after absorbing a $400 million licensing expense, equal to 12 cents per share, linked to a transaction with Chinese biotechnology firm SciBrunch.
Merck additionally adjusted its 2026 revenue forecast upward at the lower boundary, predicting total annual receipts between $66.8 billion and $67.3 billion, compared to the previously published window of $66.3 billion to $67.3 billion.
What remains to be seen is how rapidly Merck can broaden regulatory clearances for Keytruda Qlex globally and whether uptake of newer specialty treatments will fully insulate corporate profits once generic alternatives to standard Keytruda enter international markets starting in 2028.
