Merck reported strong fourth-quarter earnings and revenue, driven by demand for cancer immunotherapy Keytruda. However, the company’s 2026 outlook fell short due to upcoming patent losses for drugs like Januvia and Janumet. Merck expects revenue between $65.5B and $67B, lower than analysts’ estimates of $67.6B, with adjusted earnings per share between $5 and $5.15.

Merck’s pharmaceutical unit saw revenue increase by 6% to $14.84B in Q4, with Keytruda sales reaching $8.37B, up 7%. Sales of subcutaneous Keytruda were $35M. Winrevair, a drug for a rare lung condition, saw sales of $467M, up 133%. Gardasil, a vaccine, faced lower demand in China, generating $1.03B in sales.

Merck plans to offset revenue losses from Keytruda’s upcoming patent expiration in 2028 by cutting $3B in costs by 2027. The company is focused on driving growth through Keytruda and newer drugs like Winrevair. Gardasil sales were impacted by lower demand in China, and the pediatric vaccine schedule change may further pressure revenue in 2026.

Read more at CNBC: Merck (MRK) earnings Q4 2025