Merck reported third-quarter earnings and revenue that exceeded estimates, driven by strong demand for cancer immunotherapy Keytruda. Sales of Keytruda hit $8 billion, slightly below analyst expectations. Merck is cutting $3 billion in costs by 2027 and adjusting its 2025 earnings outlook to $8.93 to $8.98 per share.

Merck’s third-quarter revenue was $17.28 billion, beating expectations of $16.96 billion. Net income was $5.79 billion, up from $3.16 billion the previous year. Sales of Gardasil in China declined 24% to $1.75 billion due to soft demand. Merck is focused on decreasing patient costs and increasing medicine prices globally.

Merck’s pharmaceutical unit revenue was $15.61 billion, up 4%, driven by Keytruda. The newer drug Winrevair generated $360 million in sales, slightly below expectations. Merck’s animal health division saw sales of nearly $1.62 billion, up 9%, mainly due to increased demand for livestock products.

Read more at CNBC: Merck (MRK) earnings Q3 2025