Merck & Co. reported third‑quarter 2025 revenue of $17.28 billion, a 4 % year‑over‑year increase that exceeded the $16.96 billion consensus estimate. Keytruda sales reached $8.14 billion, up 10 % from the same period a year earlier and just below the $8.24 billion analysts expected.
Net income for the quarter was $5.79 billion, translating to a GAAP earnings per share of $2.32 and a non‑GAAP EPS of $2.58. The company’s GAAP EPS rose from $1.24 in Q3 2024, while net income increased by roughly 15 % from $5.0 billion.
Key product sales highlighted oncology growth: Winrevair generated $360 million in sales, Gardasil and Gardasil 9 sales declined 24 % to $1.7 billion due to reduced demand in China, and the newly launched pneumococcal vaccine Capvaxive added $244 million in revenue.
Merck revised its full‑year 2025 outlook to $64.5 billion–$65.0 billion in revenue, narrowing from the prior $64.3 billion–$65.3 billion range. Adjusted earnings per share guidance was raised to $8.93–$8.98, up from $8.87–$8.97. Management cited lower tariff costs and an amendment to its collaboration with AstraZeneca, which expands exclusivity and increases royalty income, as key drivers of the upward revision.
The company’s strategic focus extends beyond oncology. Merck completed the acquisition of Verona Pharma for its COPD treatment Ohtuvayre, and the FDA approved KEYTRUDA QLEX, a subcutaneous formulation of Keytruda for all solid‑tumor indications. These developments broaden Merck’s portfolio and support future growth amid upcoming biosimilar competition for Keytruda.
Segment performance showed oncology as the primary growth engine, while animal health sales grew 9 % to $1.6 billion, reflecting continued demand for veterinary products.
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