$MRK · Merck & Co., Inc.
Merck filed its Q3 FY2026 10-Q. Sales rose 4.7% YoY to $18.085B, with GAAP diluted EPS of $2.04 and adjusted EPS of $2.49. Net income attributable to Merck was $5.065B for the quarter, but the nine-month period swung to a $510M net loss, driven by $13.8B in R&D asset-acquisition charges (vs. none a year earlier) and a $26.9B nine-month R&D expense total.
- Q3 sales $18.085B, up 4.7% YoY from $17.276B.
- Q3 net income attributable to Merck $5.065B vs $5.785B a year ago.
- Nine-month net loss of $510M vs $15.291B profit in 2025.
- R&D expense surged to $26.871B for nine months vs $11.903B prior year.
- Cash and equivalents fell to $9.55B from $14.565B at year-end 2025.
Shares rose 3.92% in the regular session to $150.34, with extended-hours trading at $150.61 (+0.18% vs close), suggesting a mildly positive reception to the Q3 beat despite the nine-month loss.
Merck's top-line growth and Q3 profit mask a nine-month net loss driven by aggressive pipeline-building acquisitions, a key signal for investors weighing Keytruda's future.
Merck's heavy R&D acquisition spending (Cidara, Terns, TARGAN, SciBrunch) reflects the pharma sector's push to replenish pipelines ahead of Keytruda's eventual loss of exclusivity.
Nine-month results swung to a $510M net loss on $13.8B in R&D asset-acquisition charges, and the IRS is examining 2021-2022 tax returns with potential material impact if unresolved.