Merck & Company, Inc. · NYSE:MRK
Merck & — Q2 2026 Earnings Presentation
33 slides from Merck &'s earnings presentation, Aug 4, 2026
Slide 1: Second-Quarter 2026 Sales and Earnings
Second-Quarter 2026 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA August 4, 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: Increasingly clinically derisked
Accelerating progress toward transformation of portfolio >$70B As presented January 2026 2028+ Additional innovative pipeline programs Increasingly clinically derisked2 sacituzumab ifinatamab MK-1406 2027 tirumotecan3 deruxtecan4 islatravir / remigromig tulisokibart 2026 lenacapavir5 Today enlicitid
Slide 6: Increasingly clinically derisked: progress since January 2026
Accelerating progress toward transformation of portfolio >$70B Progress since January 2026 2028+ Additional innovative pipeline programs Increasingly clinically derisked2 sacituzumab ifinatamab MK-1406 2027 tirumotecan3 deruxtecan4 POSITIVE TOPLINE UNDER REVIEW islatravir / remigromig tulisokibart 2
Slide 7: Achieved significant pipeline and regulatory progress: Q2 Worldwide Sales $16.6B
Achieved significant pipeline and regulatory progress: Cardiometabolic & Respiratory • FDA approved LIPFENDRA as first and only oral PCSK9i Q2 Worldwide Sales $16.6B Oncology • Received several approvals for KEYTRUDA and KEYTRUDA QLEX including one in combination with WELIREG • Presented data at ASC
Slide 8: Completed strategic acquisition of Terns Pharmaceuticals
Completed strategic acquisition of Terns Pharmaceuticals Science-driven business development that strengthens and complements hematology pipeline Adds MK-4208, an investigational next-generation, allosteric TKI for treatment of certain patients with chronic myeloid leukemia Potential best-in-class p
Slide 9: Successfully executing on strategy to broaden and diversify pipeline
Successfully executing on strategy to broaden and diversify pipeline 2024-25 2026 2027 2028 2029+ nemtabrutinib raludotatug deruxtecan2 calderasib3 BTKi CDH6 ADC KRAS G12Ci MK-1406 opevesostat patritumab deruxtecan2 zanamivir-Fc conjugate CYP11A1i HER3 ADC sacituzumab tirumotecan1 alimatravir MK-874
Slide 10: Financial Results and Outlook
Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer 10
Slide 11: Q2 growth across human and animal health with increasing contributions from new products
Q2 growth across human and animal health with increasing contributions from new products $1.5B Human Health $14.8B +5% growth WORLDWIDE SALES1 +4% ex-exchange $0.6B $16.6B +5% nominal Animal Health +4% ex-exchange $1.8B +8% growth 2Q25 Launch product revenue2 2Q26 +5% ex-exchange OHTUVAYRE sales rep
Slide 12: Oncology: KEYTRUDA continues to benefit patients and drive growth
Oncology: KEYTRUDA continues to benefit patients and drive growth KEYTRUDA family1 sales of $8.4B increased 4% driven by strong uptake in earlier-stage cancers and robust demand from metastatic indications $8.4B ‒ Growth driven by usage in tumors +4% predominantly affecting women, including those $8
Slide 13: Oncology: Continued impact for patients across broad portfolio
Oncology: Continued impact for patients across broad portfolio $126M $162M WELIREG sales grew 67% driven by continued +29% +150% $271M higher demand in the U.S. and launch uptake +67% in international markets Lynparza1 alliance revenue relatively flat 2Q24 2Q25 2Q26 compared with prior year $370M $3
Slide 14: Vaccines & Infectious Diseases: Impacting lives globally
Vaccines & Infectious Diseases: Impacting lives globally GARDASIL sales of $1.2B increased 3% driven by higher sales in certain international markets $2.5B $1.1B $1.2B ‒ In the U.S., sales were flat primarily due to lower +4% -55% +3% demand and timing of CDC purchases, largely offset by price 2Q24
Slide 15: Cardiometabolic & Respiratory: Continuing to drive benefit for patients
Cardiometabolic & Respiratory: Continuing to drive benefit for patients with successful ongoing launches WINREVAIR sales of $588M driven by continued growth in new patient starts and $588M total prescriptions +75% ‒ In the U.S., ~1,800 new patients prescribed and >34,000 total prescriptions dispense
Slide 16: Animal Health: Solid growth driven by livestock and companion animal
Animal Health: Solid growth driven by livestock and companion animal Animal Health sales increased 5% to $1.8B ‒ Livestock sales grew 6% driven by higher demand for ruminant and poultry products ‒ Companion Animal sales grew 5% driven by new product launches $1.8B +5% $1.6B +11% $1.5B +6%1 2Q24 2Q25
Slide 17: Q2 2026 non-GAAP financial results summary
Q2 2026 non-GAAP financial results summary1 $ in billions, except LPS / EPS amounts Change Q2 2026 Q2 2025 Change Ex-FX Sales $16.6 $15.8 +5% +4% Non-GAAP Gross Margin 81.1% 82.2% -1.1 pts -1.5 pts Non-GAAP Operating Expenses2 $12.6 $6.6 91% 90% Non-GAAP Tax Rate 160.3% 15.0% N/M N/A Non-GAAP (Loss)
Slide 18: Updated 2026 financial outlook
Updated 2026 financial outlook Prior Guidance Updated Guidance Key Assumptions • Assumes ~1 percentage point positive impact from FX Revenue $65.8B to $67.0B $66.3B to $67.3B • Now implies +2% to +4% nominal (+1% to +3% ex-FX) Non-GAAP Gross Margin Rate ~82.0% ~81.0% • Now includes higher inventory
Slide 19: Key modeling considerations
Key modeling considerations OHTUVAYRE U.S. KEYTRUDA • Expect 3Q to be impacted by unwind of 2Q • Reaching peak penetration in several key specialty pharmacy purchases indications • Expect investments behind sales force and • Expect headwind from timing of wholesaler promotion to drive accelerated gr
Slide 20: Remain committed to balanced capital allocation strategy
Remain committed to balanced capital allocation strategy Q2 Spend ($ in billions)1 Capital allocation order of priority $6.3 Augmented our pipeline with value-enhancing business development while investing in our pipeline and business $3.4 as well as returning cash to shareholders $2.1 $0.9 $0.7 Aft
Slide 21: Research Update
Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories 21
Slide 22: LIPFENDRA the first and only approved oral PCSK9i
LIPFENDRA the first and only approved oral PCSK9i LIPFENDRA • First FDA-approved oral PCSK9 inhibitor to reduce LDL-C in adults with hypercholesterolemia, along with diet and exercise • ASCVD remains the leading cause of morbidity and mortality worldwide − Ongoing CORALreef Outcomes trial evaluating
Slide 23: Advancing innovative longer-acting oral treatment options for people living with HIV
Advancing innovative longer-acting oral treatment options for people living with HIV Islatravir/lenacapavir1 Islatravir/ulonivirine • Presented positive results from Phase 3 ISLEND- • Presented positive Phase 2b results for ISL+ULO 1 and ISLEND-2 studies demonstrating ISL/LEN demonstrating maintenan
Slide 24: Important updates across infectious disease programs
Important updates across infectious disease programs MK-1406 CAPVAXIVE • Phase 3 ANCHOR study completed enrollment in • FDA approved expanded indication for children Southern Hemisphere and adolescents aged 2 through 17 years who are at increased risk for pneumococcal disease • Plan to enroll second
Slide 25: Important progress in immunology clinical development program
Important progress in immunology clinical development program Tulisokibart Broadest TL1A development program • Announced positive topline results of induction-only study in moderately to severely active ulcerative colitis Gastroenterology • First anti-TL1A mAb to demonstrate positive results in a Ph
Slide 26: Continuing to advance cancer care with broad, differentiated portfolio and pipeline
Continuing to advance cancer care with broad, differentiated portfolio and pipeline Positive topline results Recent approvals • KEYNOTE-C93: Announced study evaluating • KEYNOTE-9051: EC approved KEYTRUDA with KEYTRUDA monotherapy met primary endpoint of PFS enfortumab vedotin as neoadjuvant treatme
Slide 27: Significant late-stage pipeline milestones expected over next six months
Significant late-stage pipeline milestones expected over next six months Cardiometabolic & respiratory Oncology WINREVAIR WELIREG • HYPERION PDUFA date September 21st • LITESPARK-011 PDUFA date October 4th I-DXd1 Immunology • IDeate-Lung01 PDUFA date October 10th Tulisokibart Sac-TMT1 • PCD in Augus
Slide 28: 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 29: Appendix
Appendix 29
Slide 30: Q2 2026 GAAP financial results summary
Q2 2026 GAAP financial results summary $ in billions, except LPS / EPS amounts Q2 2026 Q2 2025 Change Change Ex-FX Sales $16.6 $15.8 +5% +4% Operating Expenses $12.6 $6.7 89% 88% (SG&A and R&D)1,2 Tax Rate -95.9% 11.4% N/M N/A GAAP (Loss) / Earnings $(0.54) $1.76 N/M N/M per Share1,2 1. Q2 2026 GAAP
Slide 31: 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 $30 Well-positioned balance sheet with capacity to fund additional value- $25 $26.4 $20 $15 enhancing business development $10 $13.0 $3.9 $4.2 opp
Slide 32: 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 Immunology Oncology MK-1022 (patritumab MK-3120 Respiratory MK-1022 (patritumab KEYTRUDA (MK-3475) MK-7240 (tulisokibart) MK-2400 (ifinatamab d
Slide 33: Acronyms
Acronyms ADC = Antibody-drug conjugate HER3 = Human epidermal growth factor receptor 3 OS = Overall survival ASCO = American Society of Clinical Oncology HIV-1 = Human Immunodeficiency Virus Type 1 PCD = Primary completion date ASCVD = Atherosclerotic cardiovascular disease HNSCC = Head and neck squ