Merck & Company, Inc. · NYSE:MRK
Merck & — Q1 2026 Earnings Presentation
31 slides from Merck &'s earnings presentation, Apr 30, 2026
Slide 1: First-Quarter 2026 Sales and Earnings
First-Quarter 2026 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA April 30, 2026
Slide 2: Agenda
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer Agenda Agenda Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Question
Slide 3: Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA
Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA This presentation of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These state
Slide 4: Strategy and Business Update
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer 4
Slide 5: Achieved significant pipeline and regulatory progress: Q1 Worldwide Sales $16.3B
Achieved significant pipeline and regulatory progress: Oncology • FDA accepted four filings across oncology portfolio including new BLA for ifinatamab deruxtecan1 for priority review in SCLC Q1 Worldwide Sales $16.3B Infectious Diseases • FDA approved once-daily IDVYNSO, a new, two-drug single-table
Slide 6: Announced strategic acquisition of Terns Pharmaceuticals
Announced strategic acquisition1 of Terns Pharmaceuticals Science-driven business development that strengthens and complements hematology pipeline Adds TERN-701, an investigational next-generation, allosteric TKI for treatment of certain patients with chronic myeloid leukemia Potential best-in-class
Slide 7: Transforming our portfolio with next wave of innovation
Transforming our Advancing Diverse & Expansive Pipeline ~80 Phase 3 studies ongoing portfolio with next wave of innovation Launching New Growth Drivers Expect >20 new growth drivers, almost all of which have blockbuster potential Executing Business Development Actively pursuing additional science-dr
Slide 8: Financial Results and Outlook
Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer 8
Slide 9: Q1 worldwide performance driven by demand for our innovative portfolio
Q1 worldwide performance driven by demand for our innovative portfolio WORLDWIDE SALES1 Human Health Animal Health $16.3B +5% nominal $14.3B +5% growth +2% ex-exchange $1.8B +13% growth +6% ex-exchange +3% ex-exchange 9 1. Worldwide Sales includes Other Revenue
Slide 10: Oncology: KEYTRUDA continues to benefit patients and drive growth
Oncology: KEYTRUDA continues to benefit patients and drive growth KEYTRUDA family1 sales of $8.0B increased 8%, driven by strong demand from metastatic indications and robust uptake in earlier-stage cancers ‒ Growth driven by usage in tumors predominantly affecting women, including those $8.0B with
Slide 11: Oncology: Continued impact for patients across broad portfolio
Oncology: Continued impact for patients across broad portfolio WELIREG sales grew 43%, driven by $85M $199M continued launch uptake in international +102% +43% $137M markets and higher demand in the U.S. +63% Lynparza1 alliance revenue grew 6%, primarily 1Q24 1Q25 1Q26 due to higher demand in the U.
Slide 12: Vaccines & Infectious Diseases: Protecting lives globally
Vaccines & Infectious Diseases: Protecting lives globally GARDASIL sales of $1.1B decreased 22%, driven by lower demand in China and Japan, consistent with expectations $2.2B ‒ In the U.S., sales declined 10% primarily due to +17% the timing of CDC purchases, partially offset by $1.3B $1.1B price -4
Slide 13: Cardiometabolic & Respiratory: Continuing to drive impact for patients
Cardiometabolic & Respiratory: Continuing to drive impact for patients with successful ongoing launches WINREVAIR1 sales of $525M driven by continued growth in new patient starts and total prescriptions $525M ‒ In the U.S., >1,600 new patients prescribed and +87% >29,500 total prescriptions dispense
Slide 14: Animal Health: Strong growth driven by livestock and companion animal
Animal Health: Strong growth driven by livestock and companion animal Animal Health sales increased 6% to $1.8B ‒ Livestock sales grew 8%, driven by higher demand for ruminant and poultry products as well as price ‒ Companion Animal sales grew 4% driven by new product launches and price, partially o
Slide 15: Q1 2026 non-GAAP financial results summary
Q1 2026 non-GAAP financial results summary1 $ in billions, except LPS / EPS amounts Change Q1 2026 Q1 2025 Change Ex-FX Sales $16.3 $15.5 +5% +3% Non-GAAP Gross Margin 81.9% 82.2% -0.3 pts +0.1 pts Non-GAAP Operating Expenses2 $15.2 $6.1 N/M N/M Non-GAAP Tax Rate -43.5% 14.2% N/M N/A Non-GAAP (Loss)
Slide 16: Updated 2026 financial outlook
Updated 2026 financial outlook Prior Guidance Updated Guidance Key Assumptions • Assumes ~1 percentage point positive impact from FX Revenue $65.5B to $67.0B $65.8B to $67.0B • Implies +1% to +3% nominal (+0% to +2% ex-FX) Non-GAAP Gross Margin Rate ~82.0% ~82.0% Non-GAAP Operating Expenses1, 2 $35.
Slide 17: Key modeling considerations
Key modeling considerations KEYTRUDA ENFLONSIA SG&A • In the U.S., expect headwind • Anticipate minimal sales in 2Q • Expect expenses to increase from timing of wholesaler given expected seasonality and over remainder of year due to purchases in 3Q continued high levels of RSV investment in launches
Slide 18: Remain committed to balanced capital allocation strategy
Remain committed to balanced capital allocation strategy Q1 Spend ($ in billions)1 Capital allocation order of priority Augmented our pipeline and portfolio with value- enhancing business development while investing $9.1 in our pipeline and business as well as returning cash to shareholders $3.1 $2.
Slide 19: Research Update
Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories 19
Slide 20: Important updates across cardiometabolic and respiratory portfolio
Important updates across cardiometabolic and respiratory portfolio Enlicitide 2026 AHA/ACC Multisociety WINREVAIR Guidelines3 • Phase 3 results support ambition to • Updated guidelines support early • Totality of evidence from Phase 2 bring first approved oral PCSK9i and aggressive treatment to CADE
Slide 21: Continuing to advance cancer care with broad portfolio and pipeline
Continuing to advance cancer care with broad portfolio and pipeline KEYTRUDA WELIREG I-DXd4 • KEYNOTE-B96: FDA and EC • LITESPARK-022: WELIREG plus • Announced priority review for BLA approved KEYTRUDA in KEYTRUDA demonstrated a 28% filing based on Phase 2 IDeate- combination with paclitaxel, with o
Slide 22: Terns Pharmaceuticals acquisition expands hematology pipeline
Terns Pharmaceuticals acquisition1 expands hematology pipeline Chronic myeloid leukemia TERN-701 • Bone marrow cancer driven by BCR::ABL fusion • Potent, oral, next-generation allosteric BCR::ABL gene TKI • Advances in treatment have transformed CML to • Highly selective, with a novel binding site c
Slide 23: Building on our strong legacy in combatting infectious diseases
Building on our strong legacy in combatting infectious diseases HIV RSV • FDA and MHLW approved IDVYNSO • Presented positive top line results for for treatment of HIV-1 infection in ENFLONSIA for prevention of RSV disease in adults who are virologically infants and children under two years of age at
Slide 24: Progressing late-stage ophthalmology pipeline
Progressing late-stage ophthalmology pipeline MK-8748 Mechanism of action • Potential first-in-class bispecific inhibiting VEGF • Antibody binds Tie2 and VEGF aiming to stabilize and directly activating Tie2 pathway blood retinal barrier and reduce free VEGF • Initial Phase 1/2a RIOJA data demonstra
Slide 25: Significant late-stage pipeline milestones over next six months
Significant late-stage pipeline milestones over next six months Oncology Cardiometabolic & respiratory ASCO Investor Event WINREVAIR • Monday, June 1st • HYPERION PDUFA date September 21st KEYTRUDA Family1 Enlicitide • KEYNOTE-B152 PDUFA date August 17th • CNPV process progressing WELIREG • LITESPAR
Slide 26: Q&A
Q&A Robert M. Davis Chairman and Chief Executive Officer Caroline Litchfield Executive Vice President and Chief Financial Officer Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Peter Dannenbaum Senior Vice President, Investor Relations
Slide 27: Appendix
Appendix 27
Slide 28: Q1 2026 GAAP financial results summary
Q1 2026 GAAP financial results summary $ in billions, except LPS / EPS amounts Q1 2026 Q1 2025 Change Change Ex-FX Sales $16.3 $15.5 +5% +3% Operating Expenses $15.3 $6.2 N/M N/M (SG&A and R&D)1 Tax Rate -20.1% 13.9% N/M N/A GAAP (Loss) / Earnings $(1.72) $2.01 N/M N/M per Share2 1. Q1 2026 GAAP res
Slide 29: Executing upon balanced capital allocation strategy
Executing Capital allocation: upon balanced Trailingcapital twelveallocation months strategy Over the past 12 months Capital allocation order of priority $24 $21 Well-positioned balance sheet with $18 $20.5 capacity to fund additional value- enhancing business development $15 $12 $12.7 $9 $6 $8.2 op
Slide 30: Broad and innovative pipeline to address significant unmet medical needs
Broad and innovative pipeline to address significant unmet medical needs Phase 2 Phase Phase 3 3 Under regulatory review Oncology Cardiometabolic & Oncology Cardiometabolic & Oncology MK-1022 (patritumab MK-3120 Respiratory MK-1022 (patritumab KEYTRUDA (MK-3475) Respiratory MK-2400 (ifinatamab derux
Slide 31: Acronyms
Acronyms 6MWD = 6-minute walk distance MIBC = Muscle invasive bladder cancer AE = Adverse event NVAMD = Neovascular age-related macular degeneration AHA/ACC = American Heart Association/American College of Cardiology OS = Overall survival ASCVD = Atherosclerotic cardiovascular disease PCD = Primary