Merck Raises 2026 Profit Outlook as Keytruda and Winrevair Drive Growth

Merck reported first-quarter results that surpassed analyst expectations, driven by the continued dominance of its cancer immunotherapy, Keytruda, and the rapid scaling of newer products. Total revenue for the quarter rose 5% year-over-year to $16.29 billion. Despite a reported net loss of $4.24 billion for the period, the company noted that the result was primarily due to a $3.62 per share charge related to the acquisition of biotech firm Cidara Therapeutics. Excluding acquisition and restructuring costs, the underlying business remains robust as Merck aggressively diversifies its pipeline to mitigate upcoming patent expirations for Keytruda in 2028 and its diabetes medications later this year. Keytruda sales reached $8.03 billion, a 12% increase from the previous year, beating the $7.78 billion estimate. Growth was attributed to higher uptake for earlier-stage and metastatic cancers. Additionally, the rare lung disease treatment Winrevair generated $525 million in sales, an 88% increase that outperformed market expectations. However, the company faced headwinds with its HPV vaccine, Gardasil, which saw sales drop 19% to $1.07 billion. Merck cited sluggish demand in China—where it halted shipments last February—as well as unfavorable public-sector purchasing patterns in the U.S. and Japan. Looking ahead, Merck narrowed its 2026 revenue guidance to between $65.8 billion and $67 billion. The company also hiked its adjusted earnings per share outlook to between $5.04 and $5.16, up from the previous range of $5.00 to $5.15.