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Merck & Co., Inc. (NYSE: MRK) has released its financial results for the first quarter of 2025, reflecting a slight decline in total sales compared to the same period last year. Despite this, the company has shown growth in key areas and provided guidance for the remainder of the year.
 

Merck Reports Better than Expected Results for First-Quarter 2025

Merck’s financial results for the first quarter of 2025 show a total worldwide sales figure of $15.5 billion, marking a 2% decrease from the first quarter of 2024. However, when excluding the effects of foreign exchange, sales actually grew by 1%. The pharmaceutical giant reported a GAAP EPS of $2.01 and a non-GAAP EPS of $2.22, surpassing the expected EPS of $2.16. Merck’s revenue of $15.53 billion also exceeded the expected $15.38 billion.

Keytruda, one of Merck’s leading products, saw a 4% increase in sales, reaching $7.2 billion. Excluding foreign exchange impacts, the growth was 6%, driven by increased global uptake in various cancer indications. In contrast, Gardasil/Gardasil 9 experienced a significant decline of 41% in sales, primarily due to reduced demand in China. However, excluding China, sales grew by 14%, highlighting robust demand in other international markets.

Animal Health sales grew by 5% to $1.6 billion, with a 10% increase excluding foreign exchange impacts. This growth was primarily due to higher demand for livestock products and the inclusion of sales from the Elanco aqua business acquired in July 2024. The company’s overall performance was supported by strategic advancements in its pipeline, including compelling data from various phase 3 trials.
 

Merck Expects Worldwide Sales Between $64.1B to $65.6B for Full-Year 2025

Looking forward, Merck has provided a full-year 2025 financial outlook, maintaining its expectations for worldwide sales to be between $64.1 billion and $65.6 billion. The company has adjusted its non-GAAP EPS guidance to a range of $8.82 to $8.97, reflecting a revised outlook due to an anticipated one-time charge of approximately $0.06 per share related to a license agreement with Hengrui Pharma. This adjustment accounts for the negative impact of foreign exchange and strategic investments.

Merck’s guidance also considers the impact of tariffs, which are expected to incur additional costs of approximately $200 million. These costs will primarily be recorded in the cost of sales, impacting the gross margin. Despite these challenges, Merck remains focused on realizing the potential of its near-term opportunities and advancing its pipeline to drive future value creation.

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