Merck & Co Inc

Strong Q1 Performance: Merck reported Q1 2025 revenue of $15.5 billion, which represents a 2% year-over-year decrease but a 1% increase when excluding the impact of foreign exchange. Key growth drivers included oncology, animal health, and strong launches of WINREVER and Cafaxib, indicating resilience in core areas despite some product declines.

Guidance and Outlook: Merck maintained its full-year revenue guidance of $64.1 billion to $65.6 billion, reflecting anticipated growth of 1% to 3% excluding currency impacts. The gross margin is projected at approximately 82%, and earnings per share (EPS) guidance is set between $8.82 and $8.97. This stability suggests confidence in the company's pipeline and continued demand for its products.

Challenges from Tariffs: The company noted a $200 million impact from existing tariffs, primarily between the US and China. Merck is actively rebalancing its supply chain by investing in US manufacturing ($12 billion since 2018, with an additional $9 billion planned by 2028) to mitigate future tariff impacts and position itself effectively in a potentially changing trade environment.