Merck's Q1 adjusted loss less than expected despite Cidara acquisition charge

Merck & Co

30/04/2026 12:03

Overview

U.S. pharmaceutical firm's Q1 revenue rose 5% beating analyst expectations

Adjusted EPS loss for Q1 was smaller than analysts expected, despite Cidara acquisition charge

Company raised full-year 2026 sales and non-GAAP EPS outlook

Outlook

Merck now expects 2026 sales between $65.8 bln and $67.0 bln

Company raises 2026 non-GAAP EPS forecast to $5.04-$5.16

Outlook excludes impact from Terns Pharmaceuticals acquisition, expected to close in May

Result Drivers

ONCOLOGY GROWTH - Co said sales growth was primarily driven by higher demand for KEYTRUDA in both metastatic and earlier-stage cancer indications, with additional benefit from timing of wholesaler purchases in the U.S.

ANIMAL HEALTH - Co attributed animal health sales growth to higher demand for livestock and companion animal products, as well as price increases and new product launches

VACCINE AND DIABETES DECLINES - Co said lower sales of GARDASIL and JANUVIA/JANUMET reflected reduced demand in China and the U.S., as well as generic competition and unfavorable purchasing patterns

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$16.3 bln
$15.82 bln (16 Analysts)
Q1 Adjusted EPS
Beat
-$1.28
-$1.51 (17 Analysts)
Q1 EPS
-$1.72
Q1 Net Income
-$4.24 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy"

Wall Street's median 12-month price target for Merck & Co Inc is $133.00, about 19.9% above its April 29 closing price of $110.95

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)