Pharmaceutical company Merck & Co., Inc. (NYSE: MRK) on Tuesday reported an increase in revenue and adjusted earnings for the fourth quarter of fiscal 2025. Both sales and the bottom line beat estimates.
Total sales increased 5% from last year to $16.4 billion in the fourth quarter, exceeding Wall Street’s expectations. On a currency-adjusted basis, earnings moved up 4%. Fourth-quarter earnings, excluding special items, jumped 19% to $2.04 per share from $1.72 per share in Q4 2024. Analysts were expecting a slower growth.
On a reported basis, net income was $2.96 billion or $1.19 per share in the December quarter, compared to $3.74 billion or $1.48 per share in the comparable period last year.
For fiscal 2026, the management expects worldwide sales to be between $65.5 billion and $67.0 billion. It is looking for adjusted earnings in the range of $5.00 per share to $5.15 per share for FY26. The guidance reflects a one-time charge of about $3.65 per share for the acquisition of Cidara.
Robert Davis, Merck’s CEO, said, “Our business benefited from demand for our innovative portfolio, including for KEYTRUDA, increasing contributions from new launches in cardiometabolic and respiratory as well as vaccines, and strong performance of Animal Health. The transformation of our portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as we continue to execute on our strategy.”