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Merck & Co., Inc. (NYSE: MRK) has announced its financial results for the third quarter of 2025, showcasing a strong performance that exceeded expectations. The company also provided updated guidance for the full year, reflecting its strategic advancements and market positioning.
 

Strong Oncology Growth and $2.58 EPS Power Merck’s Q3 Results

In the third quarter of 2025, Merck & Co., Inc. reported total worldwide sales of $17.3 billion, marking a 4% increase from the same period in 2024. This growth was primarily driven by strong demand for KEYTRUDA, which saw a 10% increase in sales to $8.1 billion. The pharmaceutical segment’s performance was bolstered by oncology, cardiovascular, and diabetes products, despite some declines in vaccines and virology. Notably, WINREVAIR sales surged by 141% to $360 million.

The company’s GAAP earnings per share (EPS) was $2.32, while non-GAAP EPS was $2.58, both surpassing the expected EPS of $2.35. This performance was supported by a net income increase of 83% to $5.8 billion, compared to $3.2 billion in the third quarter of 2024. The increase in EPS was partly attributed to lower restructuring costs and favorable product mix. Merck’s sales also exceeded the anticipated revenue of $17.06 billion, reaching $17.3 billion.

Merck’s robust performance in Q3 2025 was highlighted by significant product approvals and strategic acquisitions. The FDA’s approval of KEYTRUDA QLEX for subcutaneous use across all solid tumor indications marked a major milestone. Additionally, the acquisition of Verona Pharma strengthened Merck’s pipeline, particularly in the cardiovascular and respiratory domains. These strategic moves underscore Merck’s commitment to delivering value through innovative medicines and vaccines.
 

Merck Reaffirms Long-Term Growth Plans with Higher 2025 Guidance

Looking ahead, Merck has updated its full-year 2025 financial outlook, projecting worldwide sales between $64.5 billion and $65.0 billion. This revised guidance reflects a slight increase from the previous range of $64.3 billion to $65.3 billion. The company has also raised its expected non-GAAP EPS range to $8.93 to $8.98, up from the prior range of $8.87 to $8.97.

The updated guidance accounts for several factors, including a favorable amendment to the collaboration agreement with AstraZeneca related to Koselugo and operational improvements. However, it also considers the potential negative impact of the Verona Pharma acquisition and foreign exchange fluctuations. Merck anticipates a non-GAAP effective tax rate between 14.0% and 15.0%, reflecting a more favorable tax environment than previously expected.

Merck’s strategic focus on expanding its manufacturing and R&D capabilities is evident in its ongoing investments. The company is dedicating over $70 billion to enhance its domestic operations, excluding potential future business development. This commitment not only supports Merck’s growth trajectory but also solidifies its position as a leader in biopharmaceutical innovation. As Merck continues to advance its pipeline and secure regulatory approvals, the company remains well-positioned to drive long-term success and deliver value to patients and shareholders alike.

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