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Mar 31, 2025
Merck Q1 2025 Earnings Report
Merck reported slightly lower revenue but delivered solid EPS growth, driven by oncology and animal health performance.
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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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