Published
{
"ticker": "MRK",
"cik": "0000310158",
"company": "Merck & Co., Inc.",
"business_type": "pharmaceutical",
"schema_template": "standard operating company, adapted for a research-driven pharmaceutical: sales, cost of sales, gross profit, research and development, selling/general and administrative, pretax income, net income and per-share amounts; a balance sheet with cash, debt and equity; and a cash flow statement with operating cash flow, capital expenditures, free cash flow and dividends. Merck's two reportable segments (Pharmaceutical and Animal Health) are carried alongside, because segment sales and segment profits are how the company itself describes the business.",
"schema_rationale": "Merck is a research-driven pharmaceutical and animal-health company, so the standard revenue/cost/margin frame fits, with research and development promoted to a headline expense line: at $22.3 billion in the first six months of 2026 it is the single largest cost in the business and the line that drives reported profit swings. Research and development is the largest cost line in every period shown here except 2025, when cost of sales was marginally higher ($16,382 million against research and development of $15,789 million). Merck's income statement does not present an operating income subtotal, so none is shown here; pretax income is the first profit measure the company reports.",
"reporting_currency": "USD",
"converted_to_usd": false,
"units": "actual dollars (not millions); share counts in actual shares; per-share amounts in dollars per share",
"units_notes_seen": {
"FY2025 10-K consolidated statement of income": "($ in millions except per share amounts)",
"FY2025 10-K consolidated balance sheet": "($ in millions except per share amounts)",
"FY2025 10-K consolidated statement of cash flows": "($ in millions)",
"FY2025 10-K consolidated statement of equity": "($ in millions except per share amounts)",
"FY2025 10-K earnings per share note (Note 16)": "The calculations of earnings per share (shares in millions) are as follows",
"FY2025 10-K segment reporting note (Note 18), sales of the Company's products": "notes to consolidated financial statements are headed ($ in millions except per share amounts)",
"FY2025 10-K management's discussion, segment profits table": "($ in millions)",
"Q2 2026 10-Q condensed consolidated statement of operations": "(Unaudited, $ in millions except per share amounts)",
"Q2 2026 10-Q condensed consolidated balance sheet": "(Unaudited, $ in millions except per share amounts)",
"Q2 2026 10-Q condensed consolidated statement of cash flows": "(Unaudited, $ in millions)",
"Q2 2026 10-Q loss per share note (Note 13)": "($ and shares in millions except per share amounts)",
"Q2 2026 10-Q segment reporting note (Note 15), sales of the Company's products": "($ in millions)",
"Q2 2026 10-Q management's discussion, segment profits table": "($ in millions)",
"Q2 2026 10-Q statement of equity (Note 9)": "($ and shares in millions except per share amounts)"
},
"adjustments": {
"splits_applied": [],
"adr_ratio": null,
"fx": "None. Merck reports in U.S. dollars, so no currency translation was applied.",
"splits_note": "No split adjustment was needed. Merck declared no stock split in any period reported here, and every per-share figure in this record other than the derived trailing-twelve-month figures is taken from within the FY2025 10-K (accession 0000310158-26-000063) or the Q2 2026 10-Q (accession 0000310158-26-000212), both of which state per-share amounts on a single consistent basis.",
"adr_note": "Merck is a U.S. domestic filer, not an ADR, so no ADS ratio applies."
},
"fiscal_calendar_note": "Merck's fiscal year is the calendar year, ending December 31. The quarter reported here is the three months ended June 30, 2026.",
"annual": [
{
"fiscal_year": 2025,
"label": "FY2025",
"period_start": "2025-01-01",
"period_end": "2025-12-31",
"period_type": "fiscal year",
"source_accession": "0000310158-26-000063",
"source_form": "10-K filed 2026-02-24",
"income_statement": {
"revenue": 65011000000,
"cost_of_sales": 16382000000,
"selling_general_and_administrative": 10733000000,
"research_and_development": 15789000000,
"restructuring_costs": 889000000,
"other_income_expense_net": 151000000,
"total_costs_expenses_and_other": 43944000000,
"pretax_income": 21067000000,
"income_tax_provision": 2804000000,
"net_income": 18263000000,
"net_income_attributable_to_noncontrolling_interests": 9000000,
"net_income_attributable_to_merck": 18254000000,
"basic_eps": 7.3,
"diluted_eps": 7.28,
"basic_shares": 2502000000,
"diluted_shares": 2507000000,
"gross_profit_derived": 48629000000,
"gross_margin_pct": 74.8,
"net_margin_pct": 28.1,
"effective_tax_rate_pct": 13.3,
"dividends_declared_per_share": 3.28
},
"balance_sheet": {
"cash_and_cash_equivalents": 14565000000,
"short_term_investments": 0,
"accounts_receivable_net": 11775000000,
"inventories": 6658000000,
"other_current_assets": 10518000000,
"total_current_assets": 43516000000,
"investments": 956000000,
"property_plant_and_equipment_net": 25316000000,
"goodwill": 21579000000,
"other_intangibles_net": 26681000000,
"other_assets": 18818000000,
"total_assets": 136866000000,
"loans_payable_and_current_portion_of_long_term_debt": 2589000000,
"trade_accounts_payable": 4404000000,
"accrued_and_other_current_liabilities": 14468000000,
"income_taxes_payable": 4726000000,
"dividends_payable": 2140000000,
"total_current_liabilities": 28327000000,
"long_term_debt": 46750000000,
"deferred_income_taxes": 1439000000,
"other_noncurrent_liabilities": 7688000000,
"total_merck_stockholders_equity": 52606000000,
"noncontrolling_interests": 56000000,
"total_equity": 52662000000,
"total_debt_derived": 49339000000,
"total_liabilities_derived": 84204000000
},
"cash_flow": {
"amortization": 2793000000,
"depreciation": 3045000000,
"net_cash_provided_by_operating_activities": 16472000000,
"capital_expenditures": -4112000000,
"net_cash_used_in_investing_activities": -13741000000,
"payments_on_debt": -2503000000,
"proceeds_from_issuance_of_debt": 13880000000,
"purchases_of_treasury_stock": -5084000000,
"dividends_paid_to_stockholders": -8176000000,
"net_cash_used_in_financing_activities": -1922000000,
"free_cash_flow_derived": 12360000000
},
"segments": {
"pharmaceutical_sales": 58142000000,
"animal_health_sales": 6354000000,
"total_segment_sales": 64496000000,
"other_sales_not_allocated_to_a_segment": 515000000,
"pharmaceutical_segment_profits": 45754000000,
"animal_health_segment_profits": 2131000000,
"non_segment_activity": -26818000000
}
},
{
"fiscal_year": 2024,
"label": "FY2024",
"period_start": "2024-01-01",
"period_end": "2024-12-31",
"period_type": "fiscal year",
"source_accession": "0000310158-26-000063",
"source_form": "10-K filed 2026-02-24",
"income_statement": {
"revenue": 64168000000,
"cost_of_sales": 15193000000,
"selling_general_and_administrative": 10816000000,
"research_and_development": 17938000000,
"restructuring_costs": 309000000,
"other_income_expense_net": -24000000,
"total_costs_expenses_and_other": 44232000000,
"pretax_income": 19936000000,
"income_tax_provision": 2803000000,
"net_income": 17133000000,
"net_income_attributable_to_noncontrolling_interests": 16000000,
"net_income_attributable_to_merck": 17117000000,
"basic_eps": 6.76,
"diluted_eps": 6.74,
"basic_shares": 2532000000,
"diluted_shares": 2541000000,
"gross_profit_derived": 48975000000,
"gross_margin_pct": 76.3,
"net_margin_pct": 26.7,
"effective_tax_rate_pct": 14.1,
"dividends_declared_per_share": 3.12
},
"balance_sheet": {
"cash_and_cash_equivalents": 13242000000,
"short_term_investments": 447000000,
"accounts_receivable_net": 10278000000,
"inventories": 6109000000,
"other_current_assets": 8706000000,
"total_current_assets": 38782000000,
"investments": 463000000,
"property_plant_and_equipment_net": 23779000000,
"goodwill": 21668000000,
"other_intangibles_net": 16370000000,
"other_assets": 16044000000,
"total_assets": 117106000000,
"loans_payable_and_current_portion_of_long_term_debt": 2649000000,
"trade_accounts_payable": 4079000000,
"accrued_and_other_current_liabilities": 15694000000,
"income_taxes_payable": 3914000000,
"dividends_payable": 2084000000,
"total_current_liabilities": 28420000000,
"long_term_debt": 34462000000,
"deferred_income_taxes": 1387000000,
"other_noncurrent_liabilities": 6465000000,
"total_merck_stockholders_equity": 46313000000,
"noncontrolling_interests": 59000000,
"total_equity": 46372000000,
"total_debt_derived": 37111000000,
"total_liabilities_derived": 70734000000
},
"cash_flow": {
"amortization": 2395000000,
"depreciation": 2104000000,
"net_cash_provided_by_operating_activities": 21468000000,
"capital_expenditures": -3372000000,
"net_cash_used_in_investing_activities": -7734000000,
"payments_on_debt": -1290000000,
"proceeds_from_issuance_of_debt": 3599000000,
"purchases_of_treasury_stock": -1306000000,
"dividends_paid_to_stockholders": -7840000000,
"net_cash_used_in_financing_activities": -7032000000,
"free_cash_flow_derived": 18096000000
},
"segments": {
"pharmaceutical_sales": 57400000000,
"animal_health_sales": 5877000000,
"total_segment_sales": 63277000000,
"other_sales_not_allocated_to_a_segment": 891000000,
"pharmaceutical_segment_profits": 44533000000,
"animal_health_segment_profits": 1938000000,
"non_segment_activity": -26535000000
}
},
{
"fiscal_year": 2023,
"label": "FY2023",
"period_start": "2023-01-01",
"period_end": "2023-12-31",
"period_type": "fiscal year",
"source_accession": "0000310158-26-000063",
"source_form": "10-K filed 2026-02-24",
"income_statement": {
"revenue": 60115000000,
"cost_of_sales": 16126000000,
"selling_general_and_administrative": 10504000000,
"research_and_development": 30531000000,
"restructuring_costs": 599000000,
"other_income_expense_net": 466000000,
"total_costs_expenses_and_other": 58226000000,
"pretax_income": 1889000000,
"income_tax_provision": 1512000000,
"net_income": 377000000,
"net_income_attributable_to_noncontrolling_interests": 12000000,
"net_income_attributable_to_merck": 365000000,
"basic_eps": 0.14,
"diluted_eps": 0.14,
"basic_shares": 2537000000,
"diluted_shares": 2547000000,
"gross_profit_derived": 43989000000,
"gross_margin_pct": 73.2,
"net_margin_pct": 0.6,
"effective_tax_rate_pct": 80.0,
"dividends_declared_per_share": 2.96
},
"cash_flow": {
"amortization": 2044000000,
"depreciation": 1828000000,
"net_cash_provided_by_operating_activities": 13006000000,
"capital_expenditures": -3863000000,
"net_cash_used_in_investing_activities": -14083000000,
"payments_on_debt": -1755000000,
"proceeds_from_issuance_of_debt": 5939000000,
"purchases_of_treasury_stock": -1346000000,
"dividends_paid_to_stockholders": -7445000000,
"net_cash_used_in_financing_activities": -4810000000,
"free_cash_flow_derived": 9143000000
},
"segments": {
"pharmaceutical_sales": 53583000000,
"animal_health_sales": 5625000000,
"total_segment_sales": 59208000000,
"other_sales_not_allocated_to_a_segment": 907000000,
"pharmaceutical_segment_profits": 38880000000,
"animal_health_segment_profits": 1737000000,
"non_segment_activity": -38728000000
}
}
],
"quarterly": [
{
"label": "Q2 2026",
"period_start": "2026-04-01",
"period_end": "2026-06-30",
"period_type": "three months",
"source_accession": "0000310158-26-000212",
"source_form": "10-Q filed 2026-08-07",
"income_statement": {
"revenue": 16607000000,
"cost_of_sales": 4395000000,
"selling_general_and_administrative": 2904000000,
"research_and_development": 9741000000,
"restructuring_costs": 151000000,
"other_income_expense_net": 99000000,
"total_costs_expenses_and_other": 17290000000,
"pretax_income": -683000000,
"income_tax_provision": 654000000,
"net_income": -1337000000,
"net_income_attributable_to_noncontrolling_interests": -2000000,
"net_income_attributable_to_merck": -1335000000,
"basic_eps": -0.54,
"diluted_eps": -0.54,
"basic_shares": 2470000000,
"diluted_shares": 2470000000,
"gross_profit_derived": 12212000000,
"gross_margin_pct": 73.5,
"net_margin_pct": -8.0,
"effective_tax_rate_pct": -95.9,
"dividends_declared_per_share": 0.85
},
"balance_sheet": {
"cash_and_cash_equivalents": 6849000000,
"short_term_investments": 292000000,
"accounts_receivable_net": 12564000000,
"inventories": 6207000000,
"other_current_assets": 10767000000,
"total_current_assets": 36679000000,
"investments": 1222000000,
"property_plant_and_equipment_net": 25737000000,
"goodwill": 21582000000,
"other_intangibles_net": 24978000000,
"other_assets": 19604000000,
"total_assets": 129802000000,
"loans_payable_and_current_portion_of_long_term_debt": 2825000000,
"trade_accounts_payable": 3827000000,
"accrued_and_other_current_liabilities": 14725000000,
"income_taxes_payable": 4224000000,
"dividends_payable": 2130000000,
"total_current_liabilities": 27731000000,
"long_term_debt": 51081000000,
"deferred_income_taxes": 1433000000,
"other_noncurrent_liabilities": 7573000000,
"total_merck_stockholders_equity": 41933000000,
"noncontrolling_interests": 51000000,
"total_equity": 41984000000,
"total_debt_derived": 53906000000,
"total_liabilities_derived": 87818000000
},
"segments": {
"pharmaceutical_sales": 14760000000,
"animal_health_sales": 1775000000,
"total_segment_sales": 16535000000,
"other_sales_not_allocated_to_a_segment": 72000000,
"pharmaceutical_segment_profits": 11612000000,
"animal_health_segment_profits": 636000000,
"non_segment_activity": -12931000000
}
},
{
"label": "Q2 2025",
"period_start": "2025-04-01",
"period_end": "2025-06-30",
"period_type": "three months",
"source_accession": "0000310158-26-000212",
"source_form": "10-Q filed 2026-08-07",
"income_statement": {
"revenue": 15806000000,
"cost_of_sales": 3557000000,
"selling_general_and_administrative": 2649000000,
"research_and_development": 4048000000,
"restructuring_costs": 560000000,
"other_income_expense_net": -7000000,
"total_costs_expenses_and_other": 10807000000,
"pretax_income": 4999000000,
"income_tax_provision": 571000000,
"net_income": 4428000000,
"net_income_attributable_to_noncontrolling_interests": 1000000,
"net_income_attributable_to_merck": 4427000000,
"basic_eps": 1.76,
"diluted_eps": 1.76,
"basic_shares": 2510000000,
"diluted_shares": 2513000000,
"gross_profit_derived": 12249000000,
"gross_margin_pct": 77.5,
"net_margin_pct": 28.0,
"effective_tax_rate_pct": 11.4,
"dividends_declared_per_share": 0.81
},
"segments": {
"pharmaceutical_sales": 14050000000,
"animal_health_sales": 1646000000,
"total_segment_sales": 15696000000,
"other_sales_not_allocated_to_a_segment": 110000000,
"pharmaceutical_segment_profits": 11103000000,
"animal_health_segment_profits": 593000000,
"non_segment_activity": -6697000000
}
}
],
"year_to_date": {
"label": "First six months 2026",
"period_start": "2026-01-01",
"period_end": "2026-06-30",
"period_type": "six months",
"source_accession": "0000310158-26-000212",
"source_form": "10-Q filed 2026-08-07",
"prior_year_comparative": {
"label": "First six months 2025",
"period_start": "2025-01-01",
"period_end": "2025-06-30",
"period_type": "six months",
"source_accession": "0000310158-26-000212",
"source_form": "10-Q filed 2026-08-07",
"income_statement": {
"revenue": 31335000000,
"cost_of_sales": 6976000000,
"selling_general_and_administrative": 5202000000,
"research_and_development": 7669000000,
"restructuring_costs": 629000000,
"other_income_expense_net": -43000000,
"total_costs_expenses_and_other": 20433000000,
"pretax_income": 10902000000,
"income_tax_provision": 1388000000,
"net_income": 9514000000,
"net_income_attributable_to_noncontrolling_interests": 8000000,
"net_income_attributable_to_merck": 9506000000,
"gross_profit_derived": 24359000000,
"basic_eps": 3.78,
"diluted_eps": 3.77,
"basic_shares": 2516000000,
"diluted_shares": 2522000000,
"dividends_declared_per_share": 1.62,
"gross_margin_pct": 77.7,
"net_margin_pct": 30.3,
"effective_tax_rate_pct": 12.7
},
"cash_flow": {
"amortization": 1198000000,
"depreciation": 1020000000,
"net_cash_provided_by_operating_activities": 5793000000,
"capital_expenditures": -2092000000,
"net_cash_used_in_investing_activities": -2257000000,
"payments_on_debt": -2500000000,
"proceeds_from_issuance_of_debt": 0,
"dividends_paid_to_stockholders": -4127000000,
"purchases_of_treasury_stock": -2509000000,
"net_cash_used_in_financing_activities": -9311000000,
"free_cash_flow_derived": 3701000000
},
"segments": {
"pharmaceutical_sales": 27688000000,
"animal_health_sales": 3234000000,
"total_segment_sales": 30922000000,
"other_sales_not_allocated_to_a_segment": 413000000,
"pharmaceutical_segment_profits": 21973000000,
"animal_health_segment_profits": 1226000000,
"non_segment_activity": -12297000000
}
},
"income_statement": {
"revenue": 32893000000,
"cost_of_sales": 8590000000,
"selling_general_and_administrative": 5604000000,
"research_and_development": 22333000000,
"restructuring_costs": 346000000,
"other_income_expense_net": 237000000,
"total_costs_expenses_and_other": 37110000000,
"pretax_income": -4217000000,
"income_tax_provision": 1363000000,
"net_income": -5580000000,
"net_income_attributable_to_noncontrolling_interests": -5000000,
"net_income_attributable_to_merck": -5575000000,
"gross_profit_derived": 24303000000,
"basic_eps": -2.26,
"diluted_eps": -2.26,
"basic_shares": 2471000000,
"diluted_shares": 2471000000,
"dividends_declared_per_share": 1.7,
"gross_margin_pct": 73.9,
"net_margin_pct": -16.9,
"effective_tax_rate_pct": -32.3
},
"cash_flow": {
"amortization": 1915000000,
"depreciation": 1180000000,
"net_cash_provided_by_operating_activities": 9288000000,
"capital_expenditures": -1884000000,
"net_cash_used_in_investing_activities": -15812000000,
"payments_on_debt": -1145000000,
"proceeds_from_issuance_of_debt": 5956000000,
"dividends_paid_to_stockholders": -4249000000,
"purchases_of_treasury_stock": -1631000000,
"net_cash_used_in_financing_activities": -1219000000,
"free_cash_flow_derived": 7404000000
},
"segments": {
"pharmaceutical_sales": 29109000000,
"animal_health_sales": 3566000000,
"total_segment_sales": 32675000000,
"other_sales_not_allocated_to_a_segment": 218000000,
"pharmaceutical_segment_profits": 23151000000,
"animal_health_segment_profits": 1359000000,
"non_segment_activity": -28727000000
}
},
"trailing_twelve_months": {
"label": "Trailing twelve months ended June 30, 2026",
"period_start": "2025-07-01",
"period_end": "2026-06-30",
"period_type": "trailing twelve months",
"source_accession": "0000310158-26-000063 + 0000310158-26-000212",
"derivation": "Not a period either filing presents. Each line is the FY2025 figure from the 10-K plus the first-six-months 2026 figure from the 10-Q less the first-six-months 2025 figure from the same 10-Q.",
"income_statement": {
"revenue": 66569000000,
"cost_of_sales": 17996000000,
"selling_general_and_administrative": 11135000000,
"research_and_development": 30453000000,
"restructuring_costs": 606000000,
"other_income_expense_net": 431000000,
"total_costs_expenses_and_other": 60621000000,
"pretax_income": 5948000000,
"income_tax_provision": 2779000000,
"net_income": 3169000000,
"net_income_attributable_to_noncontrolling_interests": -4000000,
"net_income_attributable_to_merck": 3173000000,
"gross_profit_derived": 48573000000,
"gross_margin_pct": 73.0,
"net_margin_pct": 4.8,
"effective_tax_rate_pct": 46.7,
"basic_eps": 1.26,
"diluted_eps": 1.25,
"dividends_declared_per_share": 3.36
},
"cash_flow": {
"amortization": 3510000000,
"depreciation": 3205000000,
"net_cash_provided_by_operating_activities": 19967000000,
"capital_expenditures": -3904000000,
"dividends_paid_to_stockholders": -8298000000,
"purchases_of_treasury_stock": -4206000000,
"free_cash_flow_derived": 16063000000
},
"segments": {
"pharmaceutical_sales": 59563000000,
"animal_health_sales": 6686000000,
"total_segment_sales": 66249000000,
"other_sales_not_allocated_to_a_segment": 320000000
}
},
"notes": [
"Coverage. Everything here comes from two filings: Merck's FY2025 Form 10-K (accession 0000310158-26-000063, filed February 24, 2026) and its Form 10-Q for the quarter ended June 30, 2026 (accession 0000310158-26-000212, filed August 7, 2026). The 10-K's income statement and cash flow statement each present three years \u2014 2025, 2024 and 2023 \u2014 and its balance sheet presents two, December 31, 2025 and December 31, 2024. The 10-Q presents the three months ended June 30, 2026 and 2025, the six months ended June 30, 2026 and 2025, a balance sheet at June 30, 2026, and a cash flow statement for the six months only. Those are exactly the periods in this record.",
"Line-item naming. Merck captions its top line \"Sales\"; it is reported here as revenue. Merck's income statement does not present an operating income subtotal \u2014 it runs from sales through a single total of costs, expenses and other to income before taxes \u2014 so no operating income figure is shown, and pretax income is the first profit measure. Merck also does not print a gross profit line; the figures named gross_profit_derived are sales less cost of sales, calculated here. Merck captions one line \"Other (income) expense, net\" and presents it inside Costs, Expenses and Other, so in this record a positive other_income_expense_net is net expense ($151 million in 2025 and $99 million in the second quarter of 2026) and a negative value is net income ($24 million of income in 2024 and $7 million of income in the second quarter of 2025).",
"Derived balance-sheet figures. Merck's balance sheet prints no total-liabilities line and no total-debt line. total_liabilities_derived is the sum of the four liability captions Merck does print (total current liabilities, long-term debt, deferred income taxes and other noncurrent liabilities); it reconciles exactly to total assets less total equity in each period shown. total_debt_derived is loans payable and current portion of long-term debt plus long-term debt: $49.3 billion at December 31, 2025, $37.1 billion at December 31, 2024, and $53.9 billion at June 30, 2026. Where a figure here is calculated rather than printed, the field name says so with a _derived suffix.",
"FY2023 has no balance sheet. The FY2025 10-K's balance sheet presents only December 31, 2025 and 2024, so the 2023 entry carries an income statement and a cash flow statement and no balance sheet. A December 31, 2023 balance sheet is not in either filing read for this record.",
"No three-month cash flow figures. Merck's 10-Q presents its cash flow statement for the six months ended June 30 only, with no three-month column, so the quarterly entries carry no cash flow block. Operating cash flow, capital expenditures and free cash flow for the current period appear in the six-month year-to-date block and in the trailing-twelve-month block. The balance sheet at June 30, 2026 is carried on the Q2 2026 entry.",
"The term loan is not in the interim debt-financing lines. Merck's 10-Q prints proceeds from a $6,000 million term loan and payments on that term loan as separate financing lines for the first six months of 2026. The term loan was both drawn and fully repaid within the period, so it is not included in payments_on_debt or proceeds_from_issuance_of_debt here.",
"What drove the 2026 loss. Merck reported a net loss of $1,335 million for the second quarter of 2026 and $5,575 million for the first six months, against net income of $4,427 million and $9,506 million in the year-ago periods, on higher sales. The swing sits in research and development, which rose to $9,741 million in the quarter from $4,048 million and to $22,333 million in the six months from $7,669 million. Two asset acquisitions accounted for most of it: Merck charged $9.0 billion to research and development for the January 2026 acquisition of Cidara Therapeutics, Inc. and $5.7 billion for the May 2026 acquisition of Terns Pharmaceuticals, Inc., both treated as asset acquisitions of acquired in-process research and development with no alternative future use. Neither charge carried a tax benefit, which is why the second quarter records a $654 million tax provision on a pretax loss.",
"Segment profits were recast in the 10-Q. Merck states in the 10-Q that certain costs previously included in the Pharmaceutical segment are now reported as non-segment unallocated expenses, and that prior-period Pharmaceutical segment profits have been recast to match. The quarterly and six-month segment profits here are therefore on the recast basis, and are not directly comparable with the FY2023-FY2025 segment profits, which are as presented in the 10-K. Segment SALES are unaffected, and so are all consolidated figures. For the same reason the trailing-twelve-month block carries segment SALES but no segment profits: combining an annual figure on the old basis with interim figures on the recast basis would not describe any real twelve months.",
"Segment figures tie to the consolidated line. In every period shown, Pharmaceutical plus Animal Health segment sales plus sales not allocated to a segment equal total sales, and Pharmaceutical plus Animal Health segment profits plus non-segment activity equal income before taxes. Merck defines segment profits narrowly \u2014 they exclude unallocated cost of sales, Merck Research Laboratories' research spending, corporate general and administrative expense, restructuring, and acquisition- and divestiture-related costs \u2014 so non-segment activity is large by construction.",
"Trailing twelve months is derived, not filed. Neither filing presents a twelve months ended June 30, 2026 column. Each line in that block is the FY2025 figure from the 10-K plus the first-six-months 2026 figure from the 10-Q less the first-six-months 2025 figure from the same 10-Q. On that basis sales were $66,569 million, income before taxes $5,948 million, net income attributable to Merck $3,173 million, operating cash flow $19,967 million and free cash flow $16,063 million. The trailing-twelve-month per-share amounts are the reported per-share amounts combined the same way ($7.28 + $(2.26) - $3.77 = $1.25 diluted); because Merck's share count fell over the period, dividing trailing net income by a weighted average share count gives a slightly higher $1.28. No trailing-twelve-month share count is shown, because neither filing reports one.",
"Share counts and per-share amounts. Weighted average basic and diluted share counts are taken from the earnings per share notes \u2014 Note 16 of the 10-K and Note 13 of the 10-Q \u2014 whose scaling notes read \"shares in millions\" and \"($ and shares in millions except per share amounts)\". Because Merck reported a loss in both 2026 periods, no dilutive shares were included in those computations, so basic and diluted counts are identical at 2,470 million for the quarter and 2,471 million for the six months. Dividends declared per common share are read from the statements of equity: $3.28 in 2025, $3.12 in 2024 and $2.96 in 2023; $0.85 for the second quarter of 2026 against $0.81 a year earlier, and $1.70 for the first six months of 2026 against $1.62.",
"Inventories are understated by the balance-sheet caption alone. Merck classifies part of its inventory in Other assets: $6,381 million at June 30, 2026, $5,681 million at December 31, 2025 and $4,193 million at December 31, 2024, in addition to the $6,207 million, $6,658 million and $6,109 million shown in current assets.",
"The December 31, 2025 balance sheet appears in both filings and agrees line for line. Cash of $14,565 million, total assets of $136,866 million and total equity of $52,662 million are identical in the 10-K and in the 10-Q's comparative column, so no restatement of that period has occurred. Nothing in either filing restates 2023 or 2024."
],
"uncertainties": [
"The trailing-twelve-month block is a calculation, not a reported period, and Merck has never published it. It combines a 10-K annual column with two 10-Q interim columns; any item Merck presents differently between an annual and an interim statement would carry into it. The trailing-twelve-month diluted figure of $1.25 is the sum of reported per-share amounts; net income over a weighted average share count gives $1.28. Both readings are given in the notes; neither is a figure Merck prints.",
"The first quarters of 2026 and 2025 are not reported here as discrete three-month periods. They could be obtained by subtracting the second quarter from the six-month column, but neither the 10-K nor the 10-Q prints them, so they are left out rather than inferred.",
"No three-month cash flow, capital expenditure or free cash flow figure is available for either quarter, because Merck's 10-Q presents cash flows for the six-month period only.",
"There is no December 31, 2023 balance sheet in either filing, so no 2023 balance sheet, total debt or book value figure appears in this record.",
"Segment profits for the 2026 and 2025 interim periods are on the basis Merck recast in the Q2 2026 10-Q; the annual segment profits for 2023 through 2025 are on the basis the 10-K presents. The two are not directly comparable, and Merck does not quantify the reclassification.",
"Merck declared no stock split in any period reported here, the earliest of which begins January 1, 2023. Every per-share amount in this record other than the derived trailing-twelve-month figures is taken from the FY2025 10-K (accession 0000310158-26-000063) or the Q2 2026 10-Q (accession 0000310158-26-000212), which state per-share figures on a single consistent basis, so no per-share figure required a split adjustment.",
"Merck's reported effective tax rates in 2026 are distorted by the Cidara and Terns charges, which reduced pretax income with no offsetting tax benefit, and are shown here as Merck reports them: negative 95.9% for the second quarter and negative 32.3% for the first six months. Every other effective rate in this record is the tax provision over pretax income and matches the rate Merck states (13.3% for 2025, 14.1% for 2024, 11.4% and 12.7% for the 2025 quarter and six months). The second-quarter 2026 rate is the only one where that ratio differs from Merck's stated figure \u2014 $654 million over a $683 million pretax loss gives 95.8% \u2014 because Merck computes it from unrounded amounts; Merck's own (95.9)% is used. The trailing-twelve-month rate of 46.7% is calculated, not stated. The 2023 rate of 80.0% is calculated here as the tax provision over pretax income, and Merck also prints it, as the total of the 2024/2023 effective income tax rate reconciliation in the FY2025 10-K.",
"Total liabilities and total debt are calculated from the captions Merck prints rather than read off a printed total, because its balance sheet shows neither subtotal. Both reconcile exactly in every period shown, but the figures are sums, not printed lines."
],
"headline": {
"period": "Q2 FY2026",
"period_end_words": "June 30, 2026",
"metrics": [
{
"label": "Revenue",
"format": "usd",
"value": 16607000000,
"text": "$16.61 billion",
"exact": "$16,607,000,000",
"compact": "$16.61B",
"abs": "$16.61 billion",
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"yoy": "up 5.1%",
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},
{
"label": "Net income",
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"value": -1335000000,
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"abs": "$1.33 billion",
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},
{
"label": "Diluted EPS",
"format": "eps",
"value": -0.54,
"text": "-$0.54",
"exact": "-$0.54",
"compact": "-$0.54",
"abs": "$0.54",
"prior_value": 1.76,
"prior": "$1.76",
"priorabs": "$1.76",
"yoy": "swung from $1.76",
"source": {
"array": "quarterly",
"field": "income_statement.diluted_eps",
"index": 0,
"period_label": "Q2 2026",
"period_end": "2026-06-30",
"period_start": "2026-04-01",
"span_days": 90,
"source_accession": "0000310158-26-000212",
"prior_index": 1,
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"prior_period_end": "2025-06-30",
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}
},
{
"label": "Research and development",
"format": "usd",
"value": 9741000000,
"text": "$9.74 billion",
"exact": "$9,741,000,000",
"compact": "$9.74B",
"abs": "$9.74 billion",
"prior_value": 4048000000,
"prior": "$4.05 billion",
"priorabs": "$4.05 billion",
"yoy": "up 140.6%",
"source": {
"array": "quarterly",
"field": "income_statement.research_and_development",
"index": 0,
"period_label": "Q2 2026",
"period_end": "2026-06-30",
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"gap_days": 365
}
},
{
"label": "Pharmaceutical segment sales",
"format": "usd",
"value": 14760000000,
"text": "$14.76 billion",
"exact": "$14,760,000,000",
"compact": "$14.76B",
"abs": "$14.76 billion",
"prior_value": 14050000000,
"prior": "$14.05 billion",
"priorabs": "$14.05 billion",
"yoy": "up 5.1%",
"source": {
"array": "quarterly",
"field": "segments.pharmaceutical_sales",
"index": 0,
"period_label": "Q2 2026",
"period_end": "2026-06-30",
"period_start": "2026-04-01",
"span_days": 90,
"source_accession": "0000310158-26-000212",
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"prior_span_days": 90,
"prior_source_accession": "0000310158-26-000212",
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}
}
],
"summary": "Merck & Co., Inc. reported $16.61 billion of sales in Q2 FY2026, the quarter ended June 30, 2026, up 5.1% from a year earlier, but posted a net loss attributable to Merck of $1.33 billion, against net income of $4.43 billion a year earlier. The swing to a loss came from research and development expense of $9.74 billion, up 140.6%, which carried the charge for the Terns Pharmaceuticals asset acquisition; diluted loss per share was $0.54, against diluted earnings per share of $1.76 a year earlier. Pharmaceutical segment sales were $14.76 billion, up 5.1%, as growth in oncology and in cardiometabolic and respiratory medicines outweighed declines in diabetes and infectious diseases.",
"qa": [
{
"q": "How much revenue did Merck report in Q2 FY2026?",
"a": "Merck & Co., Inc. reported $16.61 billion of sales in Q2 FY2026, the quarter ended June 30, 2026. That is up 5.1% from $15.81 billion in the same quarter a year earlier."
},
{
"q": "Did Merck make a profit in Q2 FY2026?",
"a": "No. Merck & Co., Inc. posted a net loss attributable to Merck of $1.33 billion in Q2 FY2026, the quarter ended June 30, 2026, against net income of $4.43 billion in the same quarter a year earlier. A charge for the Terns Pharmaceuticals asset acquisition, recorded in research and development expense, put the quarter in the red."
},
{
"q": "Why did Merck report a loss in Q2 FY2026?",
"a": "Merck & Co., Inc. charged its acquisition of Terns Pharmaceuticals to research and development expense, which rose to $9.74 billion in Q2 FY2026 from $4.05 billion a year earlier and pushed the quarter to a loss even as sales grew to $16.61 billion."
},
{
"q": "What was Merck's earnings per share in Q2 FY2026?",
"a": "Merck & Co., Inc. reported a diluted loss per share of $0.54 in Q2 FY2026, the quarter ended June 30, 2026, compared with diluted earnings per share of $1.76 a year earlier."
}
]
},
"company_details": {
"Name": "Merck & Co., Inc.",
"Ticker": "MRK",
"CIK": "0000310158",
"Exchange": "NYSE",
"State": "New Jersey",
"Incorporation": "New Jersey",
"SIC": "2834",
"Office": "Life Sciences",
"Industry": "Pharmaceutical Preparations"
},
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"predicted_date": "2026-11-04",
"predicted_type": "10-Q"
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}