Merck beats quarterly estimates on strength of Keytruda and new products, narrows outlook

Merck on Thursday reported first-quarter results that topped estimates on strong demand for its cancer immunotherapy Keytruda and some newer products. The pharmaceutical giant also narrowed its 2026 sales guidance and hiked its adjusted profit outlook, in part due to the underlying business and foreign exchange tailwinds. Merck anticipates its 2026 revenue will come in between $65.8 billion and $67 billion, narrowing the low-end of that range from $65.5 billion. The company also expects adjusted earnings to be between $5.04 and $5.16 per share, up from a previous outlook of $5 to $5.15 per share. Merck swung to a loss in the quarter, but the company pointed to a $3.62 per share charge tied to its acquisition of Cidara Therapeutics, a biotech company that is developing a flu prevention drug. Merck has been on a buying spree as it races to offset generic competition for a few drugs, including Type 2 diabetes drugs Januvia and Janumet later this year, and Keytruda in 2028. Here's what Merck reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Loss per share: $1.28 adjusted vs. $1.51 expected Revenue: $16.29 billion vs. $15.82 billion expected The company posted a net loss of $4.24 billion, or $1.72 per share, for the quarter. That compares with net income of $5.08 billion, or $2.01 per share, for the year-earlier period. …