Merck Raises 2026 Profit View as Keytruda Sales Hit $8.6 Billion

Merck's Keytruda brought in $8.60 billion in the third quarter, topping the $7.73 billion analysts had projected and marking the immunotherapy's strongest quarter to date. The total included $830 million from Keytruda Qlex, the under-the-skin injection that launched in 2025, against a $649 million analyst forecast.

The company reported adjusted earnings of $2.49 per share for the quarter, ahead of the $2.08 expected by analysts surveyed by LSEG. Revenue reached $18.09 billion, up 5% from a year earlier and above the $17.31 billion forecast. Net income was $5.07 billion, or $2.04 per share, compared with $5.79 billion, or $2.32 per share, a year earlier.

Merck lifted its 2026 adjusted earnings outlook to a range of $2.77 to $2.82 per share from $2.66 to $2.76. The updated guidance carries a one-time charge of $400 million, or 12 cents per share, tied to a licensing agreement with Chinese cancer drugmaker SciBrunch. The 2026 revenue outlook was narrowed to $66.8 billion to $67.3 billion from $66.3 billion to $67.3 billion.

Winrevair, a treatment for a rare and deadly lung condition, generated $694 million in sales, up 93% from a year earlier and above the $645 million analysts anticipated. Gardasil drew about $2 billion on higher U.S. demand, surpassing the $1.76 billion forecast, after a prior year marked by elevated inventory and weak demand in China. The animal health business posted $1.68 billion, slightly below analyst estimates.

Qlex is central to Merck's plan as Keytruda faces generic competition after key patents begin expiring in 2028. The company is working to move patients from the original intravenous version to the injection, which it considers more convenient, to defend market share after the original version loses exclusivity. Merck has also pursued deals to offset that coming pressure.