Rahway, New Jersey — February 3, 2026 — Leads & Copy —
Merck & Co., Inc. (NYSE: MRK), known as MSD outside the United States and Canada, has announced its financial results for the fourth quarter and full year of 2025.
According to Robert M. Davis, chairman and chief executive officer, the company continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients worldwide in 2025. He added that the business benefited from demand for its innovative portfolio, including KEYTRUDA, increasing contributions from new launches in cardiometabolic and respiratory as well as vaccines, and strong performance of Animal Health. The transformation of the company’s portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as the company continues to execute on its strategy. This progress positions the company to continue delivering on its purpose for patients and creating durable value for shareholders.
For the fourth quarter of 2025, GAAP EPS was $1.19, which includes a charge of $0.05 per share related to an agreement with Dr. Falk Pharma GmbH (Falk) pursuant to which the Company secured the sole global rights to MK-8690. Non-GAAP EPS was $2.04. For the full year of 2025, GAAP EPS was $7.28 and Non-GAAP EPS was $8.98. GAAP and non-GAAP EPS for the full years of 2025 and 2024 include charges of $0.20 and $1.28 per share, respectively, related to certain licensing agreements and asset acquisitions.
Fourth-quarter sales reached $16.4 billion, a 5% increase compared to $15.624 billion in 2024. Full-year sales totaled $65.011 billion, a 1% increase from $64.168 billion in 2024.
Pharmaceutical sales for the fourth quarter were $14.843 billion, a 6% increase, driven by growth in oncology, cardiometabolic, and respiratory products, partially offset by a decline in vaccines. Full-year pharmaceutical sales reached $58.142 billion, up 1% from the previous year.
Key product performances in the fourth quarter include:
- KEYTRUDA/KEYTRUDA QLEX: $8.372 billion, a 7% increase.
- GARDASIL/GARDASIL 9: $1.031 billion, a 34% decrease.
- PROQUAD, M-M-R II and VARIVAX: $619 million, a 4% increase.
- JANUVIA/JANUMET: $501 million, a 3% increase.
- BRIDION: $499 million, an 11% increase.
- WINREVAIR: $467 million, a 133% increase.
- CAPVAXIVE: $279 million.
- PREVYMIS: $275 million, a 28% increase.
- WELIREG: $220 million, a 37% increase.
- OHTUVAYRE: $178 million.
Animal Health sales for the fourth quarter were $1.505 billion, an 8% increase, driven by higher demand for livestock products. Full-year Animal Health sales were $6.4 billion, an 8% increase.
GAAP gross margin was 66.2% for the fourth quarter of 2025, compared to 75.5% for the fourth quarter of 2024. Full-year GAAP gross margin was 74.8% compared to 76.3% for the full year of 2024.
Selling, general, and administrative (SG&A) expenses were $2.9 billion in the fourth quarter of 2025, a 1% increase. Full-year SG&A expenses were $10.7 billion, a 1% decrease.
Research and development (R&D) expenses were $3.9 billion in the fourth quarter of 2025, a 15% decrease. Full-year R&D expenses were $15.8 billion, a 12% decrease.
Other (income) expense, net, was $432 million of expense in the fourth quarter of 2025, compared with $126 million of expense in the fourth quarter of 2024. Full year of 2025 was $151 million of expense compared with $24 million of income in the full year of 2024.
The effective tax rate was 13.4% for the fourth quarter of 2025 and 13.3% for the full year of 2025.
The company also announced positive late-stage trial results from 18 Phase 3 trials and began enrolling patients in 21 new Phase 3 studies evaluating multiple indications and therapeutic areas, with approximately 80 Phase 3 studies currently underway.
Full-year 2026 sales are anticipated to be between $65.5 billion and $67.0 billion. The company expects full-year 2026 non-GAAP EPS to be between $5.00 and $5.15. This range includes a one-time charge of approximately $9.0 billion, or approximately $3.65 per share, as well as approximately $0.30 per share of related financing and operational costs, related to the acquisition of Cidara.
The company reached an agreement with the U.S. government that is intended to lower medicine costs for Americans. This agreement enables the Company to continue its long-standing commitment to advancing breakthrough scientific discoveries for patients and helps ensure Americans can access the medicines they need at lower costs.
