Revenue growth has faced significant headwinds, decelerating from an 8.9% peak in 2024Q1 to a contraction of 1.9% by 2025Q2, while R&D spikes to $12.6 billion in 2026Q1 continue to pressure bottom-line profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 65.59B | 64.93B | 64.17B | 60.12B | 59.28B | 48.7B | 41.52B | 39.12B | 42.29B | 40.12B | 39.81B | 39.5B | 42.24B | 44.03B | 47.27B | 48.05B | 45.99B | 27.43B | 23.85B | 24.2B | 22.64B | 22.01B | 22.97B | 22.49B | 21.45B | 21.2B | 40.36B | 32.71B | 26.9B | 23.64B | 19.83B |
| Revenue Growth % | 2.47% | 1.18% | 6.74% | 1.4% | 21.72% | 17.31% | 6.13% | -7.5% | 5.41% | 0.79% | 0.78% | -6.48% | -4.08% | -6.84% | -1.62% | 4.48% | 67.66% | 15% | -1.44% | 6.9% | 2.84% | -4.18% | 2.17% | 4.85% | 1.16% | -47.48% | 23.38% | 21.62% | 13.8% | 19.21% | 18.87% |
| Cost of Goods Sold | 15.8B | 18.2B | 15.19B | 16.13B | 17.41B | 13.63B | 13.62B | 12.02B | 13.51B | 12.91B | 14.03B | 14.93B | 16.77B | 16.95B | 16.45B | 16.87B | 18.4B | 9.02B | 5.58B | 6.14B | 6B | 5.15B | 4.97B | 4.44B | 3.91B | 3.62B | 21.17B | 16.39B | 13.17B | 10.95B | 8.59B |
| COGS % of Revenue | - | 28.02% | 23.68% | 26.83% | 29.37% | 27.98% | 32.8% | 30.71% | 31.94% | 32.18% | 35.25% | 37.81% | 39.7% | 38.5% | 34.79% | 35.11% | 40% | 32.88% | 23.41% | 25.38% | 26.51% | 23.39% | 21.62% | 19.73% | 18.22% | 17.1% | 52.44% | 50.1% | 48.98% | 46.34% | 43.31% |
| Gross Profit | 49.79B | 46.73B | 48.98B | 43.99B | 41.87B | 35.08B | 27.9B | 27.11B | 28.79B | 27.21B | 25.78B | 24.56B | 25.47B | 27.08B | 30.82B | 31.18B | 27.59B | 18.41B | 18.27B | 18.06B | 16.63B | 16.86B | 18.01B | 18.05B | 17.54B | 17.57B | 19.2B | 16.32B | 13.72B | 12.68B | 11.24B |
| Gross Margin % | 75.91% | 71.98% | 76.32% | 73.17% | 70.63% | 72.02% | 67.2% | 69.28% | 68.06% | 67.82% | 64.75% | 62.19% | 60.3% | 61.5% | 65.21% | 64.89% | 60% | 67.12% | 76.59% | 74.62% | 73.49% | 76.61% | 78.38% | 80.27% | 81.78% | 82.9% | 47.56% | 49.9% | 51.02% | 53.66% | 56.69% |
| Gross Profit Growth % | - | -4.58% | 11.33% | 5.06% | 19.37% | 25.73% | 2.93% | -5.84% | 5.79% | 5.56% | 4.94% | -3.55% | -5.95% | -12.14% | -1.14% | 12.99% | 49.88% | 0.78% | 1.16% | 8.55% | -1.35% | -6.36% | -0.23% | 2.91% | -0.2% | -8.45% | 17.6% | 18.95% | 8.2% | 12.84% | 13.63% |
| Operating Expenses | 31.69B | 23.25B | 28.75B | 41.03B | 23.59B | 21.88B | 22.35B | 19.18B | 19.85B | 20.41B | 20.28B | 17.02B | 18.79B | 19.41B | 20.94B | 22.2B | 24.24B | 14.39B | 12.18B | 12.44B | 12.95B | 11B | 11.25B | 9.48B | 8.45B | 8.3B | 10.11B | 8.73B | 7.35B | 6.82B | 6.26B |
| OpEx % of Revenue | - | 35.8% | 44.81% | 68.26% | 39.79% | 44.92% | 53.84% | 49.02% | 46.94% | 50.88% | 50.94% | 43.08% | 44.48% | 44.09% | 44.31% | 46.2% | 52.7% | 52.46% | 51.08% | 51.41% | 57.2% | 49.99% | 48.97% | 42.16% | 39.4% | 39.13% | 25.04% | 26.69% | 27.32% | 28.85% | 31.55% |
| Selling, General & Admin | 9.54B | 10.73B | 10.1B | 9.88B | 9.67B | 9.4B | 8.57B | 9.46B | 10.1B | 10.07B | 10.02B | 10.31B | 11.61B | 11.91B | 12.78B | 13.73B | 13.13B | 8.54B | 7.38B | 7.56B | 8.17B | 7.16B | 7.24B | 6.2B | 5.65B | 5.7B | 6.17B | 5.2B | 4.51B | 4.3B | 3.84B |
| SG&A % of Revenue | - | 16.53% | 15.74% | 16.44% | 16.31% | 19.31% | 20.64% | 24.17% | 23.89% | 25.11% | 25.16% | 26.11% | 27.48% | 27.05% | 27.03% | 28.58% | 28.54% | 31.15% | 30.93% | 31.23% | 36.07% | 32.51% | 31.51% | 27.57% | 26.36% | 26.89% | 15.28% | 15.9% | 16.77% | 18.19% | 19.37% |
| Research & Development | 22.15B | 12.51B | 17.94B | 30.53B | 13.55B | 12.24B | 13.4B | 9.72B | 9.75B | 10.34B | 10.26B | 6.7B | 7.18B | 7.5B | 8.17B | 8.47B | 11.11B | 5.84B | 4.8B | 4.88B | 4.78B | 3.85B | 4.01B | 3.28B | 2.68B | 2.46B | 2.34B | 2.07B | 1.82B | 1.68B | 1.49B |
| R&D % of Revenue | - | 19.27% | 27.95% | 50.79% | 22.85% | 25.14% | 32.27% | 24.86% | 23.06% | 25.77% | 25.78% | 16.97% | 17% | 17.04% | 17.28% | 17.62% | 24.16% | 21.31% | 20.15% | 20.18% | 21.13% | 17.48% | 17.46% | 14.59% | 12.48% | 11.59% | 5.81% | 6.32% | 6.77% | 7.12% | 7.5% |
| Other Operating Expenses | 0 | 0 | 716M | 620M | 373M | 231M | 386M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 120M | 139.1M | 1.6B | 1.46B | 1.02B | 837.1M | 927.1M |
| Operating Income | 18.1B | 23.49B | 20.22B | 2.95B | 18.28B | 13.2B | 5.55B | 7.93B | 8.93B | 6.8B | 5.5B | 7.55B | 6.68B | 7.67B | 9.88B | 8.98B | 3.35B | 4.02B | 6.08B | 5.62B | 3.69B | 5.86B | 6.76B | 8.57B | 9.09B | 9.28B | 9.09B | 7.59B | 6.38B | 5.86B | 4.98B |
| Operating Margin % | 27.59% | 36.17% | 31.51% | 4.91% | 30.84% | 27.1% | 13.36% | 20.26% | 21.12% | 16.94% | 13.81% | 19.11% | 15.82% | 17.41% | 20.9% | 18.68% | 7.3% | 14.66% | 25.51% | 23.21% | 16.29% | 26.62% | 29.42% | 38.11% | 42.38% | 43.77% | 22.52% | 23.21% | 23.7% | 24.81% | 25.14% |
| Operating Income Growth % | - | 16.15% | 584.53% | -83.84% | 38.51% | 137.91% | -30% | -11.25% | 31.4% | 23.6% | -27.14% | 12.93% | -12.81% | -22.4% | 10.04% | 167.54% | -16.56% | -33.92% | 8.32% | 52.38% | -37.08% | -13.31% | -21.13% | -5.73% | -2.03% | 2.08% | 19.68% | 19.11% | 8.74% | 17.63% | 13.2% |
| EBITDA | 24.2B | 29.32B | 24.72B | 6.83B | 22.19B | 16.41B | 9.03B | 11.24B | 13.45B | 11.47B | 10.97B | 13.92B | 13.37B | 14.65B | 16.86B | 16.4B | 10.74B | 6.6B | 7.72B | 7.61B | 5.96B | 7.57B | 8.21B | 9.88B | 10.32B | 10.41B | 10.37B | 9.06B | 7.39B | 6.7B | 5.91B |
| EBITDA Margin % | 36.9% | 45.17% | 38.52% | 11.35% | 37.43% | 33.7% | 21.76% | 28.72% | 31.8% | 28.6% | 27.56% | 35.25% | 31.66% | 33.28% | 35.66% | 34.14% | 23.35% | 24.05% | 32.35% | 31.43% | 26.31% | 34.38% | 35.73% | 43.95% | 48.12% | 49.11% | 25.68% | 27.68% | 27.48% | 28.35% | 29.81% |
| EBITDA Growth % | -6.13% | 18.62% | 262.14% | -69.24% | 35.2% | 81.68% | -19.6% | -16.46% | 17.23% | 4.59% | -21.2% | 4.1% | -8.73% | -13.06% | 2.76% | 52.79% | 62.74% | -14.5% | 1.45% | 27.72% | -21.3% | -7.82% | -16.94% | -4.24% | -0.87% | 0.43% | 14.46% | 22.53% | 10.3% | 13.35% | 12.33% |
| D&A (Non-Cash Add-back) | 6.11B | 5.84B | 4.5B | 3.87B | 3.91B | 3.21B | 3.49B | 3.31B | 4.52B | 4.68B | 5.47B | 6.38B | 6.69B | 6.99B | 6.98B | 7.43B | 7.38B | 2.58B | 1.63B | 1.99B | 2.27B | 1.71B | 1.45B | 1.31B | 1.23B | 1.13B | 1.28B | 1.46B | 1.02B | 837.1M | 927.1M |
| EBIT | 12.67B | 22.42B | 21.21B | 3.04B | 17.41B | 14.69B | 6.69B | 12.36B | 9.47B | 7.28B | 5.35B | 6.07B | 18.02B | 6.35B | 9.45B | 8.08B | 2.37B | 15.75B | 10.18B | 3.88B | 6.72B | 7.87B | 8.42B | 8.57B | 9.09B | 9.28B | 9.09B | 7.59B | 6.38B | 5.86B | 4.98B |
| Net Interest Income | -809M | -1.01B | -856M | -781M | -805M | -770M | -772M | -619M | -429M | -369M | -365M | -383M | -466M | -537M | -482M | -550M | -632M | -250M | 380M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 234M | 343M | 415M | 365M | 157M | 36M | 59M | 274M | 343M | 385M | 328M | 289M | 266M | 264M | 232M | 199M | 83M | 210.2M | 631M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.04B | 1.36B | 1.27B | 1.15B | 962M | 806M | 831M | 893M | 772M | 754M | 693M | 672M | 732M | 801M | 714M | 749M | 715M | 458M | 251M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -6.47B | -2.42B | -285M | -1.06B | -1.84B | 680M | 315M | -755M | -230M | -276M | -840M | -2.15B | 10.6B | -2.12B | -1.14B | -1.64B | -1.7B | 11.27B | 3.85B | -2.25B | 2.53B | 1.51B | 1.24B | 482.8M | 562.4M | 670M | 735M | 1.03B | 1.76B | 598.6M | 556.1M |
| Pretax Income | 11.63B | 21.07B | 19.94B | 1.89B | 16.44B | 13.88B | 5.86B | 7.17B | 8.7B | 6.52B | 4.66B | 5.4B | 17.28B | 5.54B | 8.74B | 7.33B | 1.65B | 15.29B | 9.93B | 3.37B | 6.22B | 7.36B | 8B | 9.05B | 9.65B | 9.95B | 9.82B | 8.62B | 8.13B | 6.46B | 5.54B |
| Pretax Margin % | 17.73% | 32.45% | 31.07% | 3.14% | 27.74% | 28.5% | 14.12% | 18.33% | 20.57% | 16.25% | 11.7% | 13.67% | 40.92% | 12.59% | 18.49% | 15.26% | 3.59% | 55.75% | 41.64% | 13.93% | 27.48% | 33.45% | 34.84% | 40.25% | 45.01% | 46.93% | 24.34% | 26.35% | 30.24% | 27.34% | 27.94% |
| Income Tax | 2.7B | 2.8B | 2.8B | 1.51B | 1.92B | 1.52B | 1.34B | 1.56B | 2.51B | 4.1B | 718M | 942M | 5.35B | 1.03B | 2.44B | 942M | 671M | 2.27B | 2B | 95.3M | 1.79B | 2.73B | 2.17B | 2.46B | 2.86B | 2.89B | 3B | 2.73B | 2.88B | 1.85B | 1.66B |
| Effective Tax Rate % | 23.18% | 13.31% | 14.06% | 80.04% | 11.66% | 10.96% | 22.86% | 21.82% | 28.82% | 62.92% | 15.41% | 17.44% | 30.95% | 18.54% | 27.92% | 12.84% | 40.59% | 14.83% | 20.13% | 2.83% | 28.73% | 37.11% | 27.15% | 27.2% | 29.6% | 29.1% | 30.56% | 31.66% | 35.47% | 28.6% | 29.95% |
| Net Income | 8.94B | 18.25B | 17.12B | 365M | 14.52B | 13.05B | 7.07B | 9.84B | 6.22B | 2.39B | 3.92B | 4.44B | 11.92B | 4.4B | 6.17B | 6.27B | 861M | 12.9B | 7.81B | 3.28B | 4.43B | 4.63B | 5.83B | 6.83B | 7.15B | 7.28B | 6.82B | 5.89B | 5.25B | 4.61B | 3.88B |
| Net Margin % | 13.62% | 28.12% | 26.68% | 0.61% | 24.49% | 26.79% | 17.02% | 25.16% | 14.71% | 5.97% | 9.85% | 11.25% | 28.22% | 10% | 13.05% | 13.05% | 1.87% | 47.03% | 32.74% | 13.54% | 19.59% | 21.04% | 25.38% | 30.38% | 33.34% | 34.35% | 16.9% | 18.01% | 19.51% | 19.52% | 19.57% |
| Net Income Growth % | -48.75% | 6.64% | 4589.59% | -97.49% | 11.27% | 84.65% | -28.2% | 58.25% | 159.82% | -38.93% | -11.75% | -62.73% | 170.66% | -28.6% | -1.66% | 628.46% | -93.33% | 65.2% | 138.38% | -26.13% | -4.26% | -20.56% | -14.65% | -4.46% | -1.82% | 6.74% | 15.81% | 12.24% | 13.74% | 18.88% | 16.37% |
| Net Income (Continuing) | 8.93B | 18.26B | 17.13B | 377M | 14.53B | 12.36B | 4.52B | 5.61B | 6.19B | 2.42B | 3.94B | 4.46B | 11.93B | 4.52B | 6.3B | 6.39B | 982M | 13.02B | 7.93B | 3.28B | 4.43B | 4.63B | 5.83B | 6.59B | 6.79B | 7.05B | 6.82B | 5.89B | 5.25B | 4.61B | 3.88B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 704M | 2.55B | 4.15B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 241.3M | 354.7M | 228.6M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 53M | 56M | 59M | 54M | 67M | 73M | 87M | 94M | 181M | 233M | 220M | 91M | 144M | 2.56B | 2.44B | 2.43B | 2.43B | 2.43B | 2.41B | 2.41B | 2.41B | 2.41B | 2.41B | 3.92B | 4.93B | 4.84B | 5.02B | 3.46B | 3.71B | 1.17B | 2.31B |
| EPS (Diluted) | 3.61 | 7.28 | 6.74 | 0.14 | 5.71 | 5.14 | 2.78 | 3.82 | 2.32 | 0.93 | 2.04 | 1.56 | 4.07 | 1.47 | 2.16 | 2.02 | 0.28 | 4.15 | 3.63 | -1.04 | 2.03 | 2.10 | 2.62 | 2.97 | 3.14 | 3.14 | 2.90 | 2.45 | 2.15 | 1.87 | 1.56 |
| EPS Growth % | -48.33% | 8.01% | 4714.29% | -97.55% | 11.09% | 84.89% | -27.23% | 64.66% | 149.46% | -54.41% | 30.77% | -61.67% | 176.87% | -31.94% | 6.93% | 621.43% | -93.25% | 14.33% | 449.04% | -151.23% | -3.33% | -19.85% | -11.78% | -5.41% | 0% | 8.28% | 18.37% | 13.95% | 14.97% | 19.87% | 18.18% |
| EPS (Basic) | - | 7.30 | 6.76 | 0.14 | 5.73 | 5.16 | 2.79 | 3.84 | 2.40 | 0.95 | 2.07 | 1.60 | 4.20 | 1.50 | 2.20 | 2.06 | 0.28 | 4.15 | 3.65 | -1.04 | 2.04 | 2.11 | 2.63 | 2.97 | 3.17 | 3.18 | 2.96 | 2.51 | 2.21 | 1.92 | 1.60 |
| Diluted Shares Outstanding | 2.47B | 2.51B | 2.54B | 2.55B | 2.54B | 2.54B | 2.54B | 2.58B | 2.68B | 2.75B | 2.79B | 2.84B | 2.93B | 3B | 3.08B | 3.09B | 3.12B | 2.27B | 2.14B | 2.19B | 2.19B | 2.2B | 2.23B | 2.25B | 2.28B | 2.32B | 2.35B | 2.4B | 2.44B | 2.47B | 2.49B |
| Basic Shares Outstanding | 2.47B | 2.5B | 2.53B | 2.61B | 2.53B | 2.53B | 2.53B | 2.56B | 2.59B | 2.7B | 2.75B | 2.78B | 2.84B | 2.93B | 3.03B | 3.04B | 3.1B | 2.11B | 2.14B | 2.17B | 2.18B | 2.2B | 2.22B | 2.24B | 2.26B | 2.29B | 2.31B | 2.35B | 2.37B | 2.4B | 2.43B |
| Dividend Payout Ratio | - | 44.79% | 45.8% | 2039.73% | 48.3% | 50.66% | 87.94% | 57.86% | 83.15% | 215.83% | 130.71% | 115.2% | 44.02% | 119.82% | 84.89% | 76.71% | 563.65% | 24.92% | 41.99% | 100.97% | 74.94% | 72.33% | 56.79% | 47.58% | 44.64% | 43.19% | 41.02% | 43.96% | 42.93% | 44.21% | 44.54% |
Keytruda patent cliff exposure
As reported in financial statements, Merck's quarterly revenue growth has fluctuated significantly, moving from a peak of 8.9% in 2024Q1 to a contraction of 1.9% by 2025Q2, suggesting that the company is struggling to maintain consistent top-line momentum amidst a challenging competitive landscape for its core oncology portfolio.
The deceleration in revenue growth appears to reflect the maturation of key assets and the inherent volatility in vaccine contract timing. Investors should monitor whether the recent launch of new therapies can offset the slowing growth rates observed in the most recent quarters.
Based on recent SEC filings, Merck's gross margin has exhibited notable variance, ranging from a low of 70.5% in 2025Q4 to a high of 81.9% in 2026Q1, indicating that product mix shifts and potential inventory adjustments are creating significant noise in the company's underlying profitability profile.
While the 81.9% margin in 2026Q1 suggests strong pricing power, the inconsistency across periods warrants caution regarding the sustainability of these levels. This volatility may imply that the company is experiencing uneven realization of value from its high-margin oncology and vaccine segments.
According to the provided income statement data, Merck's R&D expenditure has been highly irregular, spiking to $12.6 billion in 2026Q1 and $9.6 billion in 2023Q4, which directly contributed to the reported net losses in those specific periods as management prioritizes long-term pipeline development over short-term earnings.
The aggressive R&D investment strategy appears to be a defensive necessity to mitigate future patent cliffs, yet it creates significant earnings volatility. Analysts should evaluate whether these heavy outlays are yielding sufficient clinical progress to justify the recurring pressure on operating income.
As indicated by the financial data, the company's net income has swung from a $5.8 billion profit in 2025Q3 to a $4.2 billion loss in 2026Q1, highlighting a vulnerability where heavy R&D and acquisition-related costs can rapidly erode the bottom line despite stable gross profit generation.
Short-sellers may focus on the inability of the core business to consistently cover the massive R&D and acquisition costs required to sustain growth. This pattern suggests that Merck's earnings quality is highly sensitive to the timing of pipeline investments, which may not always align with revenue recognition.
Quick answers to the most common questions about buying MRK stock.
For fiscal year 2025, Merck & Co., Inc. (MRK) reported total revenue of $64.93B. This represents a 227.4% increase compared to $19.83B in 1996.
Merck & Co., Inc. (MRK) is profitable, generating $18.25B in net income for the fiscal year ending 2025 with a net profit margin of 28.1%.
Merck & Co., Inc. (MRK) reported an operating income of $23.49B, resulting in an operating profit margin of 36.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Merck & Co., Inc. (MRK) generated $46.73B in gross profit for the year, representing a gross profit margin of 72.0%. This demonstrates the company's core pricing power and production efficiency.