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Merck lifts full-year sales outlook after Q2 beat, cuts profit guidance

Merck lifts full-year sales outlook after Q2 beat, cuts profit guidance

A $57 billion non-cash charge tied to Terns Pharmaceuticals drove a first-half net loss, but stronger sales from Keytruda, Winrevair and other products supported a higher 2026 revenue outlook.

Fact Check
Both CNBC articles from Aug 4, 2026 fully support every element of the claim. The Q2 earnings article ('Merck (MRK) earnings Q2 2026') confirms the revenue beat, raised full-year sales outlook, and cut profit/EPS guidance driven by acquisition charges (Terns $5.7B, Cidara $9B). The CEO article confirms Rob Davis citing 20+ planned launches and roughly $65 billion in dealmaking/R&D to offset Keytruda patent expiration. A web search returned corroborating headlines ('hikes revenue outlook... cuts profit guidance due to deal charges'). No conflicting evidence was found.
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Summary

Merck posted a first-half 2026 net loss of $55.75 billion, versus a $9.51 billion profit a year earlier, after a $57 billion non-cash charge tied to its March acquisition of Terns Pharmaceuticals overwhelmed gains from rising sales across its core drug portfolio. The company still raised and narrowed its full-year revenue forecast to $66.3 billion to $67.3 billion from $65.8 billion to $67 billion, while cutting adjusted earnings guidance to $2.66 to $2.76 per share from $5.04 to $5.16 to reflect the Terns charge and an earlier $9 billion expense related to Cidara Therapeutics. Second-quarter revenue rose 5% to $16.61 billion, topping estimates, while adjusted loss per share of 13 cents was narrower than analysts expected. Keytruda sales climbed 5% to $8.37 billion in the quarter, including $463 million from Keytruda Qlex, and Winrevair sales rose 75% to $588 million. Merck said its strategy is to maximize Keytruda ahead of biosimilar competition in 2028 while building new growth drivers through launches, pipeline development and acquisitions, including TERN-701, an oral chronic myeloid leukemia therapy it said has "best-in-class" potential.

Terms & Concepts
  • Biosimilar competition: Competition from near-copy versions of biologic medicines that can enter the market after patent or exclusivity protections expire.
  • Keytruda Qlex: A newer injectable version of Keytruda that Merck is using to help defend the franchise ahead of future biosimilar competition.
  • PCSK9 inhibitor: A cholesterol-lowering therapy that targets the PCSK9 protein to reduce LDL, often called bad cholesterol.