Merck & Co., Inc. (NYSE: MRK) shares increased 2.74% on Tuesday as the company reported its full-year 2025 financial results. The stock closed at $116.51 following the release of data showing annual sales growth in the pharmaceutical and animal health segments.
As of the market close on February 3, 2026, Merck & Co., Inc. maintains a market capitalization of approximately $288.82 billion.
Full Year Results
Merck reported full year 2025 worldwide sales of $65.0 billion, a 1% increase over $64.2 billion in 2024. Annual GAAP net income reached $17.12 billion, marking a directional recovery from a reported net loss in 2023. Full-year non-GAAP earnings per share were $8.98, a 17% increase compared to 2024 results. The pharmaceutical segment contributed $57.5 billion to total annual revenue, led by oncology and vaccine growth, while Januvia franchise sales declined due to patent expirations.
Fourth Quarter Results
For the fourth quarter ended December 31, 2025, Merck reported consolidated worldwide sales of $16.4 billion, representing a 5% increase compared to $15.6 billion in the fourth quarter of 2024. GAAP net income for the quarter was $2.96 billion, compared to $3.74 billion in the prior-year period. Non-GAAP earnings per share reached $2.04 for the quarter.
Segment results for the fourth quarter:
- Pharmaceutical: Sales of $14.8 billion, a 6% increase year-over-year. Oncology sales for Keytruda totaled $8.4 billion (+7%), while Gardasil sales declined 35% to $1.0 billion.
- Animal Health: Sales of $1.5 billion, representing an 8% increase from the prior year.
Financial Trends
Business & Operations Update
Operational developments in 2025 included 18 positive Phase 3 clinical trial readouts. The company introduced Winrevair for pulmonary arterial hypertension and Capvaxive for pneumococcal disease. Regulatory updates included FDA priority reviews for several pipeline candidates. Restructuring charges related to portfolio optimization were recorded during the fiscal year.
M&A or Strategic Moves
In the fourth quarter of 2025, Merck acquired sole global rights to MK-8690 and completed the acquisitions of Verona Pharma plc and Cidara Therapeutics. The company also entered a license agreement with Hengrui Pharma for an investigational Lp(a) inhibitor to expand its cardiovascular pipeline.
Guidance & Outlook
For the fiscal year 2026, Merck issued revenue guidance between $65.5 billion and $67.0 billion. The company expects non-GAAP earnings per share in the range of $5.00 to $5.15. This outlook incorporates a one-time charge of $3.65 per share associated with the Cidara acquisition. Management identified pipeline execution and the launch of new therapies as key factors to watch.
Performance Summary
Merck shares rose 2.74% at the close. Full year 2025 sales reached $65.0 billion. Pharmaceutical segment revenue increased 6% in the fourth quarter. The 2026 guidance anticipates continued revenue growth within a stable margin environment.
