Merck & Co Reports Narrower Loss, Driven by Strong Sales in Keytruda and Animal Health

Merck & Co reported a loss in Q1 due to acquisition charges despite increased cancer and respiratory drugs sales. Revenue was $16.3 billion, beating estimates. Keytruda sales rose 12% to $8 billion, while animal health sales jumped 13%. The company adjusted its 2026 profit forecast to $5.04-5.16 per share.

Merck & Co reported a first-quarter loss on Thursday, primarily due to acquisition-related charges, despite a notable 5% boost in product sales driven by its cancer and respiratory drugs. Shares of the U.S. drugmaker saw a nearly 5% rise in premarket trading, as the reported loss was narrower than analysts' expectations.

The company's revenue for the first quarter increased to $16.3 billion, exceeding both last year's figure of $15.5 billion and the average analyst projection of $15.8 billion, compiled by LSEG. Merck reported an adjusted loss of $1.28 per share for the quarter, accounting for a $3.62 per share charge from acquiring antiviral drug maker Cidara Therapeutics, whereas analysts had forecast a $1.51 per share loss.

Looking ahead, Merck narrowed its full-year forecast, predicting a 2026 profit between $5.04 and $5.16 per share on sales ranging from $65.8 billion to $67 billion. These projections exclude the effects of its planned acquisition of Terns Pharmaceuticals, which is expected to introduce a one-time charge of $2.35 per share. Notable sales figures included a 12% increase in Keytruda and an 88% rise in Winrevair, with an animal health segment growth of 13%.