Merck & Co Inc
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+ FollowMarket Cap$375.98B
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Earnings Call Q3 2026
October 29, 2026 - AI Summary
Solid Q3 performance + growth drivers (Good / expected)
- Revenue: $18.1B, +5% YoY (or +4% ex-FX), driven by new product launches, plus strength in Oncology and Animal Health.
- Key product highlights (growth):
- KEYTRUDA family: $8.6B (+6%); growth driven by earlier-stage uptake and continued metastatic demand. Notable: women’s tumors (cervical/breast) and KEYTRUDA + PADCEV in urothelial cancer.
- WELIREG: $370M (+58%) (US adjuvant renal cell carcinoma + international launches).
- Gardasil: $2.0B (+14%); US benefit from a significant CDC purchase and price; international +6%.
- WINREVAIR: $694M (+94%) momentum continues (PAH demand + benefit from channel inventory).
- Animal Health: +3% (companion +6%, livestock +2%).
- Margins/earnings: Gross margin 81.4% (slightly down). EPS $2.49 (non-GAAP basis) included a $0.12/share Ceybrion-related charge.
Full-year 2026 outlook raised/narrowed (Forecast / investor anchor)
- Revenue guidance: $66.8B–$67.3B (~+3% to +4% YoY; +~1 percentage point from FX).
- EPS guidance (non-GAAP): $2.77–$2.82 (positive FX ~+$0.15); includes Ceybrion charge.
- Other key assumptions: Gross margin ~81%, operating expenses $42.4B–$42.9B, tax rate 32–33%.
- Important timing headwinds/tailwinds to watch:
- Q3 included about $550M of favorable purchase timing (KEYTRUDA ~ $200M unwinds in Q4; WINREVAIR ~$50M unwinds in Q4; vaccines ~$300M primarily unwinds next year with ~$250M in 2027).
2027 “investment year” + earnings growth expected to recover through/after KEYTRUDA LOE (Mixed but clarifying)
- Management framed 2027 as another investment year with moderate revenue growth, but major headwinds.
- Expected headwinds in 2027: >$2B from generic competition / LOE (notably BRIDION, Januvia family, Adempas).
- KEYTRUDA: still important, but growth moderates as peak penetration is reached in certain indications; also ex-US price/policy dynamics (Germany).
- Costs: expenses expected to increase due to full investment behind pipeline + launches (gross margin rising from royalty roll-off on KEYTRUDA, partly offsetting higher spend).
- Investor takeaway (good/surprising): management said earnings should grow moving toward the LOE period, expecting only a “shallow dip” in the early post-price-setting/IRA/LOE period, then return to growth—but this is partly dependent on launch execution and pipeline progression.
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$106.06
29.5% downside
Current Fair Value
29.5% downsideOvervalued by 29.5% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $375.98 Billion |
|---|---|
| Enterprise Value | $427.26 Billion |
| Annual dividend | $3.40 |
| Dividend yield | 2.27% |
| Earnings per Share | $7.3 |
| Beta | 0.22 |
| Outstanding Shares | 2,477,984,000 |
Return
| Return on Equity | 5.85% |
|---|---|
| Return on Assets | 2.23% |
| Return on Invested Capital | 13.25% |
Valuation & Multiples
| P/E Ratio | 152.57 |
|---|---|
| PEG | -1225.87 |
| Price to Sales | 5.57 |
| Price to Book Ratio | 9.4 |
| Enterprise Value to Revenue | 6.34 |
| Enterprise Value to EBIT | 39.09 |
| Enterprise Value to Net Income | 174 |
| Total Debt to Enterprise | 0.14 |
| Debt to Equity | 1.39 |
Revenue Sources
No data
Last Earnings Call
Report Date
October 29, 2026
EPS Estimate
$2.09
Consensus analyst estimateRevenue Estimate
$17.33 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 2, 2027
EPS Estimate
$1.77
Consensus analyst estimateRevenue Estimate
$16.32 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.19, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.1870▼ 89.31% |
|---|---|
| Total Calls | 33,695▼ 99.84% |
| Total Puts | 6,300▼ 99.97% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 4.56%▼ 77.70% |
|---|---|
| Total Invested | $16.37B▼ 93.73% |
| Investors Holding | 1,797▼ 2157.00% |
About Merck & Co Inc
75,000 employees
CEO: Kenneth Frazier
Merck & Co., Inc. is a prominent global healthcare enterprise. It operates through two core segments: Human Pharmaceuticals and Animal Health. Its Pharmaceutical segment delivers human health products, including medications for critical ...