Merck & Co., Inc. (NYSE:MRK) Issues FY 2026 Earnings Guidance

Merck & Co., Inc. (NYSE:MRK) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 5.000-5.150 for the period, compared to the consensus estimate of 5.860. The company issued revenue guidance of $65.5 billion-$67.0 billion, compared to the consensus revenue estimate of $67.5 billion.

Merck & Co., Inc. Stock Up 3.5%

Shares of MRK traded up $3.92 on Tuesday, hitting $117.29. 5,134,882 shares of the stock traded hands, compared to its average volume of 12,393,865. The business has a 50 day simple moving average of $105.46 and a 200 day simple moving average of $92.23. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.66. Merck & Co., Inc. has a one year low of $73.31 and a one year high of $118.46. The company has a market capitalization of $291.11 billion, a PE ratio of 15.49, a P/E/G ratio of 1.55 and a beta of 0.28.

Merck & Co., Inc. (NYSE:MRK) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $2.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.08 by ($0.04). Merck & Co., Inc. had a net margin of 29.63% and a return on equity of 44.54%. During the same period in the prior year, the company earned $1.72 EPS. The firm’s quarterly revenue was up 5.0% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS. As a group, equities analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Monday, March 16th will be paid a dividend of $0.85 per share. The ex-dividend date is Monday, March 16th. This represents a $3.40 annualized dividend and a yield of 2.9%. Merck & Co., Inc.’s dividend payout ratio is currently 44.91%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on MRK shares. Morgan Stanley lifted their price target on shares of Merck & Co., Inc. from $100.00 to $102.00 and gave the stock an “equal weight” rating in a research note on Friday, December 12th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Merck & Co., Inc. from $110.00 to $111.00 and gave the stock a “hold” rating in a research report on Tuesday, November 18th. TD Cowen boosted their target price on shares of Merck & Co., Inc. from $100.00 to $120.00 and gave the company a “hold” rating in a research note on Tuesday, January 20th. BMO Capital Markets raised Merck & Co., Inc. from a “market perform” rating to an “outperform” rating and increased their price target for the company from $82.00 to $130.00 in a report on Thursday, December 18th. Finally, UBS Group lifted their price objective on Merck & Co., Inc. from $105.00 to $130.00 and gave the stock a “buy” rating in a report on Wednesday, January 7th. Eight analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $114.53.

Merck & Co., Inc. News Summary

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Q4 beats on results: Merck reported Q4 earnings and revenue that topped estimates, supported by strong demand for Keytruda and newer products — a constructive sign for current earnings quality. Merck (MRK) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analyst / commentator support: High‑profile bullish commentary (e.g., Jim Cramer) highlighted Merck’s ability to “spread out the wealth,” which can help sentiment among retail and momentum investors. Jim Cramer on Merck & Co.: “I think it can spread out the wealth”
• Neutral Sentiment: Corporate release / pipeline update: Merck’s formal press release covers Q4 and full‑year results plus pipeline progress — useful for detail but largely confirms the same themes driving stock moves. Merck & Co., Inc., Rahway, N.J., USA Announces Fourth-Quarter and Full-Year 2025 Financial Results; Highlights Progress Advancing Broad, Diverse Pipeline
• Negative Sentiment: Guidance misses expectations: Management set FY‑2026 EPS at $5.00–$5.15 (vs. ~$5.86 consensus) and revenue $65.5–$67.0B (vs. ~$67.5B consensus), a clear reason for near‑term selling pressure. Company FY‑2026 guidance update (internal entry)
• Negative Sentiment: Patent losses and generics risk: Reuters and other outlets note that loss of exclusivity on Januvia and other drugs will weigh on 2026 sales more than analysts expected — a structural headwind for revenue. Merck forecasts 2026 sales below estimates on patent losses
• Negative Sentiment: Slower earnings growth as M&A spending ramps: Coverage (WSJ) flags that Merck expects slower EPS growth as it increases acquisition activity — investors often penalize near‑term dilution/expense even if strategic. Merck Expects Slower Earnings Growth As It Spends on Acquisitions
• Negative Sentiment: Market reaction / coverage: Multiple outlets report shares falling after the cautious 2026 outlook — media coverage amplifies the negative headline and short‑term volatility. Merck shares fall as 2026 guidance disappoints despite solid Q4 results

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Wealth Watch Advisors INC bought a new stake in Merck & Co., Inc. during the 3rd quarter worth approximately $34,000. Silicon Valley Capital Partners increased its stake in shares of Merck & Co., Inc. by 160.5% in the third quarter. Silicon Valley Capital Partners now owns 422 shares of the company’s stock worth $35,000 after purchasing an additional 260 shares in the last quarter. Turning Point Benefit Group Inc. bought a new stake in shares of Merck & Co., Inc. during the 3rd quarter valued at $46,000. Wiser Advisor Group LLC purchased a new position in shares of Merck & Co., Inc. during the 3rd quarter valued at $55,000. Finally, Chapman Financial Group LLC bought a new position in Merck & Co., Inc. in the 2nd quarter worth $84,000. 76.07% of the stock is currently owned by institutional investors.

About Merck & Co., Inc.

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.