Merck beats earnings expectations in Q1 2025, lowers profit guidance due to tariffs

From CNBC: 2025-04-24 06:32:00

Merck lowered its full-year profit guidance by $200 million due to tariffs and a charge related to a recent deal. The company expects adjusted earnings between $8.82 and $8.97 per share for 2025, reflecting U.S.-China tariffs. Merck also reported strong first-quarter revenue from oncology and animal health products.

Merck plans to invest $12 billion in U.S. manufacturing and research and development. The company’s sales forecast remains between $64.1 billion and $65.6 billion for the year. Merck’s recent drugs, Winrevair and Capvaxive, are contributing to sales growth, offsetting losses from Keytruda.

Merck reported first-quarter earnings per share of $2.22, beating Wall Street expectations of $2.14. Revenue was $15.53 billion, slightly higher than the expected $15.31 billion. Merck’s pharmaceutical unit revenue was $13.64 billion, with Keytruda sales reaching $7.21 billion. Gardasil sales in China declined due to halted shipments.

Merck’s animal health division saw sales increase to nearly $1.59 billion in the first quarter, up 5% from last year. The growth was driven by higher demand for livestock products and sales from Elanco’s aqua business acquisition. China’s tariffs on U.S. products may impact the availability and cost of certain medicines in the market.



Read more at CNBC:: Merck (MRK) earnings report Q1 2025