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Jun 30, 2025
Merck Q2 2025 Earnings Report
Merck reported mixed results with a slight revenue decline and lower net income compared to the previous year.
Key Takeaways
Merck posted Q2 2025 results showing a modest decline in revenue and net income, with strong sales of KEYTRUDA partially offset by a steep drop in GARDASIL sales. The company highlighted a cost-saving initiative and a strategic acquisition to bolster future growth.
Revenue by Segment
Forward Guidance
Merck narrowed its full-year 2025 revenue and EPS guidance, excluding impacts from the Verona Pharma acquisition.
Positive Outlook
- Raised lower end of full-year revenue guidance to $64.3B
- Narrowed non-GAAP EPS guidance to $8.87–$8.97
- Strong pipeline momentum with FDA approvals and Phase 3 results
- Announced $10B acquisition of Verona Pharma to expand COPD portfolio
- Launched $3B cost optimization program to fund strategic investments
Challenges Ahead
- Overall Q2 revenue declined 2% year-over-year
- GAAP net income down 19% vs. Q2 2024
- Significant decline in GARDASIL sales due to weak demand in China
- Increased R&D expenses due to licensing and clinical investments
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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