Merck Beats Q3 Estimates and Raises Outlook on Strong Keytruda and New Products

Merck & Co. posted third-quarter revenue of roughly $18.1 billion and adjusted earnings of $2.49 per share, both above Wall Street expectations. The company lifted the low end of its full-year revenue guidance to $66.8 billion and its adjusted-profit outlook to $2.77-$2.82 per share. A one-time $400 million charge related to a licensing deal with Chinese cancer drugmaker SciBrunch is included in the new profit range.

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Keytruda, Merck’s flagship PD-1 immunotherapy, generated $8.6 billion in sales, a 6 % year-over-year increase, with the newly approved subcutaneous formulation Keytruda Qlex contributing $830 million—the highest quarterly Qlex sales since its 2025 launch. The company is positioning Qlex as a “cornerstone” to transition patients from the original intravenous infusion, aiming to sustain market share as Keytruda’s primary patents expire in 2028.

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Beyond Keytruda, the pulmonary arterial hypertension drug Winrevair posted $694 million in sales, up 94 % from the prior year, while the Gardasil HPV vaccine approached $2 billion, driven by early purchases from the U.S. Centers for Disease Control and Prevention. Merck’s animal-health segment recorded $1.68 billion in sales, slightly below forecasts.

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• Keytruda sales: $8.6 billion (6 % increase)

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• Keytruda Qlex: $830 million (highest quarterly Qlex sales)

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• Winrevair: $694 million (94 % increase)

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• Gardasil: just under $2 billion (14 % increase)

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• Adjusted earnings: $2.49 per share, beating the $2.08 estimate

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• Revenue: $18.1 billion, surpassing the $17.31 billion forecast

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CEO Robert Davis said the recent clinical-trial successes and acquisitions have strengthened confidence in the company’s long-term revenue target of $70 billion for its emerging portfolio. He highlighted the potential of experimental assets such as the sac-TMT bispecific antibody and an mRNA cancer vaccine developed with Moderna, noting that these could offset the anticipated loss of exclusivity for Keytruda. Davis also expressed optimism about navigating the upcoming “loss of exclusivity” (LOE) for the blockbuster drug.

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• “What we've seen so far gives me great confidence and increased confidence in that $70 billion. And as such, as we've indicated, we expect now to be raising that number,” — Robert Davis, merck CEO

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• “As we look across the portfolio, I feel very good about where we are and our ability to navigate the Keytruda LOE,” — Robert Davis, merck CEO

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