TLDR
- Merck delivered an adjusted Q1 loss of $1.28 per share, surpassing analyst expectations of a $1.47 loss
- Global revenue climbed 5% to $16.3 billion, exceeding Wall Street’s $15.8 billion projection
- Keytruda revenue reached $8 billion with 12% growth, while Gardasil declined 22% due to sluggish Chinese demand
- Winrevair revenue jumped 88% to $525 million; Januvia sales tumbled 29% before its May patent expiration
- Annual guidance increased modestly to $65.8B–$67B in revenue and $5.04–$5.16 adjusted EPS
Merck delivered first-quarter financial results on Thursday that surpassed Wall Street projections, propelling shares 4.8% higher in early trading before the opening bell.
The pharmaceutical giant reported an adjusted quarterly loss of $1.28 per share for the first three months of the year, performing better than the consensus analyst forecast of a $1.47 loss. On a GAAP basis, the company recorded a net loss totaling $4.24 billion, translating to $1.72 per share, primarily attributed to a $3.62 per share charge associated with its $9.2 billion acquisition of Cidara Therapeutics completed in January.
This result contrasts with the year-ago period when Merck posted a profit of $5.08 billion, equivalent to $2.01 per share.
Global revenue increased 5% to $16.29 billion, comfortably exceeding the FactSet consensus projection of $15.85 billion.
Keytruda, the pharmaceutical company’s flagship oncology medication, continued to serve as the primary revenue driver. The drug generated $8 billion during the quarter, representing 12% year-over-year growth and comprising nearly half of Merck’s total quarterly revenue. This figure encompasses both the conventional intravenous formulation and the recently introduced subcutaneous version, Keytruda SC.
The medication has attracted significant attention from investors and analysts as its U.S. patent protection expires in 2028, when more affordable biosimilar alternatives are anticipated to enter the marketplace.
Chief Executive Officer Robert Davis has previously outlined strategies to construct a “patent wall” surrounding Keytruda through additional approved indications and combination therapies, with certain patents extending protection through 2029.
Gardasil Weakness Continues
Not all product lines demonstrated positive momentum. Gardasil, Merck’s human papillomavirus vaccine, experienced a 22% decline in sales on a currency-adjusted basis during the first quarter.
The decrease reflects ongoing challenges in the Chinese market, combined with reduced sales in Japan following the conclusion of a government-sponsored catch-up vaccination initiative. Unfavorable purchasing patterns in the U.S. public sector also contributed to the revenue decline.
Januvia, the company’s diabetes medication, is experiencing market share erosion even ahead of its May patent expiration. First-quarter sales decreased 29% as generic alternatives capture market share in anticipation of the formal loss of exclusivity.
Winrevair Picks Up the Slack
On a more positive note, Winrevair — Merck’s therapeutic option for pulmonary arterial hypertension — delivered another impressive quarterly performance. Revenue soared 88% compared to the prior year to reach $525 million.
Bridion also made a solid contribution, with revenue advancing 7% to $472 million, though this growth was partially counterbalanced by generic competition in international territories.
Merck increased its full-year financial guidance by a small margin. The pharmaceutical company now anticipates global revenue between $65.8 billion and $67 billion, representing an increase from the previously communicated range of $65.5 billion to $67 billion.
Adjusted earnings per share guidance was elevated to a range of $5.04 to $5.16, up from the prior forecast of $5.00 to $5.15.
Earlier in 2025, Merck had cautioned that full-year financial performance would face headwinds from patent expirations affecting Januvia and other products. That guidance had pressured the stock following the fourth-quarter earnings announcement.
The company secured FDA approval last week for a once-daily dual-drug HIV-1 treatment protocol, providing an additional asset to its development portfolio as management works to broaden revenue sources in advance of the approaching Keytruda patent cliff.
MRK shares gained 4.8% in premarket trading on Thursday.
