Merck Q1 2025 Earnings Report
Key Takeaways
Merck saw revenue dip slightly to $15.5B in Q1 2025, with earnings per share increasing on both a GAAP and non-GAAP basis. Strength in oncology, particularly KEYTRUDA, and growth in animal health helped offset vaccine declines, especially GARDASIL sales in China.
Total revenue decreased by 2% to $15.5B, but grew 1% excluding foreign exchange.
KEYTRUDA sales reached $7.205B, up 4% from the prior year.
GARDASIL/GARDASIL 9 sales dropped sharply by 41% to $1.327B due to weak China demand.
Animal Health segment revenue rose 5% to $1.588B, led by livestock products and recent acquisitions.
Merck
Merck
Merck Revenue by Segment
Forward Guidance
Merck maintained its full-year sales outlook and slightly reduced non-GAAP EPS guidance due to anticipated one-time licensing costs.
Positive Outlook
- Expected sales range remains $64.1B to $65.6B.
- Pipeline expansion with licensing deal for Lp(a) inhibitor.
- KEYTRUDA gaining traction in earlier-stage cancers.
- Subcutaneous pembrolizumab application under review in US and EU.
- CAPVAXIVE received EC approval, supporting vaccine portfolio.
Challenges Ahead
- Foreign exchange expected to negatively impact EPS by over $0.20 per share.
- Revised non-GAAP EPS range reflects a $0.06/share one-time licensing charge.
- Tariffs expected to increase costs by $200M.
- Vaccine sales, particularly GARDASIL, under pressure in China.
- Lower demand for LAGEVRIO continues to weigh on virology segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income