Merck Announces Q4 and Full-Year 2025 Financial Results, Highlights Pipeline Progress
- Q4 worldwide sales reached $16.4B with a 5% growth.
- Full-year 2025 sales totaled $65B, with KEYTRUDA sales at $31.7B.
- Merck acquired Verona Pharma and Cidara Therapeutics, and signed a license agreement with Hengrui Pharma.
- 2026 sales forecast is $65.5B to $67B, with a one-time EPS charge of $3.65 for Cidara acquisition.
Financial Performance
Merck reported fourth-quarter worldwide sales of $16.4 billion, marking a 5% growth. The full-year 2025 sales reached $65 billion, with a 1% growth. KEYTRUDA sales were significant, totaling $31.7 billion, while WINREVAIR and CAPVAXIVE contributed $1.4 billion and $759 million, respectively. Animal Health sales grew by 8% to $6.4 billion.
Earnings and Charges
Fourth-quarter GAAP EPS was $1.19, and non-GAAP EPS was $2.04, both including a $0.05 per share charge for acquiring MK-8690 rights. Full-year GAAP EPS was $7.28, and non-GAAP EPS was $8.98, with charges of $0.20 per share related to business development transactions.
Pipeline and Acquisitions
Merck announced positive results from 18 Phase 3 trials in 2025. The company expanded its pipeline through acquisitions of Verona Pharma and Cidara Therapeutics and a license agreement with Hengrui Pharma. In the fourth quarter, Merck received FDA National Priority Vouchers for Enlicitide and Sacituzumab Tirumotecan, potentially expediting FDA review timelines.
2026 Outlook
Merck anticipates 2026 worldwide sales between $65.5 billion and $67 billion. The non-GAAP EPS is expected to be between $5.00 and $5.15, reflecting a one-time charge of approximately $3.65 per share for the Cidara acquisition.
Source: Merck