Merck raises 2026 sales outlook on strength of newer drugs including Winrevair

Aug 4, 2026

Merck raised its 2026 sales forecast to up to $67.3 billion, citing strong Q2 demand for new drugs like Winrevair, which saw sales grow 75%. Despite beating revenue estimates with $16.61 billion, the company cut its profit guidance due to multi-billion dollar charges from its acquisitions of Terns Pharmaceuticals and Cidara Therapeutics. Sales of its blockbuster drug Keytruda grew 5% to $8.37 billion.

Second-quarter financial results

▪Merck posted a net loss of $1.34 billion, or 54 cents per share, for the second quarter, compared to a net income of $4.43 billion a year earlier.
▪The company's Q2 revenue of $16.61 billion surpassed Wall Street expectations of $16.36 billion.
▪Excluding certain costs, Merck's adjusted loss for Q2 was 13 cents per share, beating analyst expectations of a 27-cent loss.
▪Merck reported second-quarter revenue of $16.61 billion, a 5% increase from the year-earlier period.

2026 outlook revision

▪Merck raised its full-year 2026 revenue forecast to a range of $66.3 billion to $67.3 billion.
▪Merck lowered its 2026 adjusted earnings guidance to between $2.66 and $2.76 per share, down from a previous range of $5.04 to $5.16.
▪The company's previous 2026 revenue guidance was between $65.8 billion and $67 billion.

Biotech acquisition charges

▪The profit outlook also includes a $9 billion charge related to the January acquisition of Cidara Therapeutics.
▪Merck is pursuing acquisitions to counter expected revenue loss from generic competition for drugs like Keytruda, which goes off-patent in 2028.
▪The reduced profit outlook includes a one-time charge of $5.7 billion related to the acquisition of Terns Pharmaceuticals.

Keytruda performance

▪A new injectable version of Keytruda accounted for $463 million of the drug's second-quarter sales.
▪Sales of the immunotherapy drug Keytruda reached $8.37 billion in the second quarter, a 5% year-over-year increase.

Newer drug portfolio growth

▪Sales of Winrevair, a treatment for a rare lung condition, grew 75% to $588 million in the second quarter.
▪Merck's pneumococcal vaccine, Capvaxive, generated $184 million in sales for the quarter, a 42% increase from the prior year.