Merck has raised its full-year adjusted profit forecast after stronger-than-expected third-quarter results, helped by robust demand for its cancer treatment Keytruda and its newer injectable version.
The pharmaceutical company now expects adjusted earnings of between $2.77 and $2.82 per share, up from its previous range of $2.66 to $2.76. The revised outlook includes a one-off charge of $400 million, equivalent to 12 cents per share, linked to a licensing agreement with Chinese cancer drugmaker SciBrunch.
Merck also narrowed the lower end of its 2026 revenue forecast. It now expects sales of between $66.8 billion and $67.3 billion, compared with an earlier range of $66.3 billion to $67.3 billion.
For the three months to the end of September, Merck reported adjusted earnings of $2.49 per share, ahead of analysts’ expectations of $2.08. Revenue rose 5% year on year to $18.09 billion, compared with forecasts of $17.31 billion.
Net income fell to $5.07 billion, or $2.04 per share, from $5.79 billion, or $2.32 per share, in the same quarter a year earlier. The figures exclude acquisition and restructuring costs when adjusted earnings are calculated.
Keytruda sales outperform expectations
Keytruda generated $8.60 billion in quarterly sales, well above the $7.73 billion analysts had expected. The total included $830 million from Keytruda Qlex, the under-the-skin injection launched in 2025, compared with expectations of $649 million.
The performance makes Qlex the strongest quarterly contributor since its launch and supports Merck’s plan to move patients from the original intravenous treatment to the more convenient injectable form.
Merck is seeking to protect Keytruda’s position as patents on the original medicine begin to expire in 2028. The company has been pursuing licensing and other deals while positioning Qlex as a central part of its strategy to maintain the drug’s sales beyond the loss of exclusivity for the original version.
Other newer products also recorded gains. Winrevair, used to treat a rare and potentially fatal lung condition, brought in $694 million, up 93% on the previous year and ahead of analysts’ forecast of $645 million.
Gardasil, Merck’s vaccine against cancers linked to HPV, produced about $2 billion in sales, exceeding expectations of $1.76 billion as demand increased in the United States. The result follows the company’s struggles last year with high Gardasil inventories and weaker demand in China.
Merck’s animal health division reported third-quarter sales of $1.68 billion, slightly below analysts’ estimates.
