Merck's near-term earnings are being distorted by a deliberate R&D surge, with spending tripling to $12.6B in 2026Q1 and driving operating losses, yet the company maintains a stable top line with 5.1% revenue growth in 2026Q2. The balance sheet shows rising le...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth is stable at 5.1% in 2026Q2, but operating margins have swung from a 43.4% profit in 2025Q3 to a -4.1% loss in 2026Q2 due to R&D spending surging to $12.6B in 2026Q1.
Merck has achieved an annual earnings growth of 16.8% over the last five years, outpacing revenue growth.
Management projects over $70 billion in commercial opportunities by the mid-2030s, with key drugs like Welireg showing strong growth.
Merck's P/E ratio stands at 14.8x, below the industry average, and offers a dividend yield of 3.11%.
Keytruda accounts for roughly half of Merck's revenue, raising concerns about earnings impact post-2028 patent loss.
Some DCF analyses suggest fair value prices significantly lower than the current trading price, indicating possible overvaluation.
Recent technical analysis shows bearish signals, including a 10-day moving average crossing below the 50-day moving average.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 4, 2026 | -$0.13+51.9% vs -$0.27 | $16.6B+1.5% vs $16.4B |
Q2 2026 Apr 30, 2026 | -$1.28+12.9% vs -$1.47 | $16.3B+2.8% vs $15.8B |
Q1 2026 Feb 3, 2026 | $2.04+1.5% vs $2.01 | $16.4B+1.2% vs $16.2B |
Q4 2025 Oct 30, 2025 | $2.58+9.3% vs $2.36 | $17.3B+1.8% vs $17.0B |
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced the U.S. Food and Drug Administration (FDA) has approved an update to the U.S. product label for WINREVAIR™ (sotatercept-csrk) for injection, 45mg, 60mg, based on the Phase 3 HYPERION trial. WINREVAIR, an activin signaling inhibitor, is FDA-approved for the treatment of adults with pulmonary arterial hypertension (PAH, WHO Group 1 pulmonary hypertension) to improve exercise ca.
MRK's Keytruda plus Padcev combo gets CHMP backing as perioperative treatment for eligible patients with resectable muscle-invasive bladder cancer.
AZN and MRK bring distinct oncology strengths, growth plans, pipeline opportunities and patent-related challenges to the table.
Benchmark MRK against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Merck & Co., Inc. (MRK)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $150.92 | $372.73B | 20.73 | 1.18% | 28.12% | 36.86% | 2.16% | |
| $27.93 | $159.19B | 20.54 | -1.65% | 6.81% | 4.87% | — | |
| $1170.48 | $1.1T | 51.00 | 44.7% | 33.53% | 92.53% | — | |
| $265.32 | $468.77B | 111.95 | 8.57% | 9.81% | — | — | |
| $62.25 | $127.12B | 18.04 | -0.22% | 18.87% | 46.69% | — | |
| $410.24 | $221.41B | 28.83 | 9.92% | 22.93% | 89.32% | — |
Merck & Co., Inc. (MRK) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Merck & Co., Inc. (MRK) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 4, 2026·SEC
May 28, 2026·SEC
May 22, 2026·SEC
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Merck & Co., Inc. (MRK) stock FAQ — growth, dividends, profitability & financials explained
Merck & Co., Inc. (MRK) reported $66.40B in revenue for fiscal year 2025. This represents a 235% increase from $19.83B in 1996.
Merck & Co., Inc. (MRK) grew revenue by 1.2% over the past year. Growth has been modest.
Yes, Merck & Co., Inc. (MRK) is profitable, generating $3.17B in net income for fiscal year 2025 (28.1% net margin).
Yes, Merck & Co., Inc. (MRK) pays a dividend with a yield of 2.16%. This makes it attractive for income-focused investors.
Merck & Co., Inc. (MRK) has a return on equity (ROE) of 36.9%. This is excellent, indicating efficient use of shareholder capital.
Merck & Co., Inc. (MRK) generated $16.06B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
