Merck & Company, Inc. · NYSE:MRK
Merck & — Q4 2025 Earnings Presentation
34 slides from Merck &'s earnings presentation, Feb 3, 2026
Slide 1: Fourth-Quarter 2025 Sales and Earnings
Fourth-Quarter 2025 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA February 3, 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: 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 6: Delivering revenue growth while investing for the future
Delivering revenue growth while investing for the future Q4 Worldwide Sales 2026 2025 Guidance Range $16.4B $65.0B $65.5B - $67.0B +5% nominal Full Year +4% ex-exchange Sales (+1% nominal, +2% ex-exchange) (+1-3% nominal, +0-2% ex-exchange) Q4 Non-GAAP EPS1,3 Full Year Non-GAAP $2.04 $8.98 $5.00 - $
Slide 7: Remarkable progress across broad and deep pipeline
Remarkable progress across broad and deep pipeline Presented Phase 3 results for enlicitide from CORALreef Lipids and HeFH studies at AHA 2025 Cardiometabolic Announced positive Phase 2 topline results for & Respiratory WINREVAIR in CpcPH due to HFpEF Announced positive topline results for doravirin
Slide 8: Completed strategic acquisition of Cidara Therapeutics
Completed strategic acquisition of Cidara Therapeutics Adds MK-1406, a potential first-in-class, long-acting strain agnostic antiviral for the prevention of influenza infection in certain individuals Strategic fit within portfolio and pipeline Significant potential to positively impact public health
Slide 9: Transforming our portfolio with more than 20 new growth drivers
Transforming our portfolio with more than 20 new growth drivers, almost all with blockbuster potential 2024 2025 2026 2027 2028+ islatravir + lenacapavir3 MK-1406 intismeran autogene6 NRTTI + capsid inhibitor zanamivir-Fc conjugate INT MK-3000 sacituzumab tirumotecan4 opevesostat Wnt agonist TROP2 A
Slide 10: Data-rich period ahead with multiple Phase 3 readouts across novel mechanisms
Data-rich period ahead with multiple Phase 3 readouts across novel mechanisms 2026 2027 ISL / LEN1 MK-3000 tulisokibart sac-TMT2 MK-1406 I-DXd3 NRTI with Mechanism of translocation zanamivir-Fc Wnt agonist TL1A mAb TROP2 ADC B7H3 ADC action inhibition / capsid conjugate inhibitor Therapeutic Infecti
Slide 11: Delivering on our purpose for patients and creating long-term value
Delivering on our purpose for patients and creating long-term value Augmenting pipeline with Executing on multiple Making significant clinical strategic business product launches advancements development Successful acceleration and Multiple impactful Phase 3 augmentation of pipeline has readouts thr
Slide 12: Financial Results and Outlook
Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer 12
Slide 13: Growth driven by strength in Oncology and Animal Health as well as new product launches
Growth driven by strength in Oncology and Animal Health as well as new product launches Q4 2025 WORLDWIDE SALES1 $16.4B +5% growth FULL YEAR WORLDWIDE SALES1 +4% ex-exchange $65.0B Human Health Animal Health +1% nominal +2% ex-exchange +7% ex-GARDASIL China2, ex-exchange $14.8B $1.5B +6% growth +8%
Slide 14: 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 5%, driven by robust uptake in earlier-stage cancers and strong demand from metastatic indications ‒ Growth driven by usage in tumors $8.4B predominantly affecting women, including those with
Slide 15: Oncology: Continued growth across broad portfolio
Oncology: Continued growth across broad portfolio WELIREG sales grew 37%, driven by demand $72M $220M in the U.S. and continued launch uptake in +78% $160M +37% several international markets +123% Lynparza1 sales grew 4%, primarily due to 4Q23 4Q24 4Q25 higher demand in several international markets
Slide 16: Vaccines & Infectious Disease: Protecting lives globally
Vaccines & Infectious Disease: Protecting lives globally GARDASIL sales of $1.0B decreased 35%, driven by lower demand in China and Japan $1.9B ‒ Other international markets grew 8%, +27% $1.6B benefitting from the timing of purchases -18% ‒ In the U.S., sales grew 7% primarily due to price $1.0B -3
Slide 17: Cardiometabolic & Respiratory: Continuing to drive impact for patients
Cardiometabolic & Respiratory: Continuing to drive impact for patients with successful ongoing launches WINREVAIR1 sales of $467M driven by continued growth in new patient starts and $467M total prescriptions +133% ‒ In the U.S., >1,500 new patients prescribed and >27,000 total prescriptions dispens
Slide 18: Animal Health: Strong growth driven by livestock portfolio
Animal Health: Strong growth driven by livestock portfolio Animal Health sales increased 6% to $1.6B ‒ Livestock sales grew 9%, driven by higher demand across all species ‒ Companion Animal sales were flat as growth from new product launches was offset by lower demand for other products in portfolio
Slide 19: Q4 2025 non-GAAP financial results summary
Q4 2025 non-GAAP financial results summary1 $ in billions, except EPS amounts Change Q4 2025 Q4 2024 Change Ex-FX Sales $16.4 $15.6 +5% +4% Non-GAAP Gross Margin 79.7% 80.8% -1.1 pts -0.8 pts Non-GAAP Operating Expenses $6.8 $7.4 -7% -8% Non-GAAP Tax Rate 15.4% 16.2% -0.8 pts N/A Non-GAAP EPS2,3 $2.
Slide 20: 2026 financial outlook
2026 financial outlook Guidance Key Assumptions • Assumes ~1 percentage point positive impact from FX Revenue $65.5B to $67.0B • Implies +1 to +3% nominal (+0% to +2% ex-FX) Non-GAAP ~82.0% Gross Margin Rate Non-GAAP $35.9B to $36.9B • Includes ~$9B charge related to acquisition of Cidara Operating
Slide 21: Key modeling considerations
Key modeling considerations Expect ~$2.5B Revenue Headwind LAGEVRIO1 • Generic competition for JANUVIA • Expect lower sales due to softening family, BRIDION, and DIFICID demand • IRA price setting for JANUVIA • Restructured agreement for Koselugo 21 1. Available in the U.S. under Emergency Use Autho
Slide 22: Remain committed to balanced capital allocation strategy
Remain committed to balanced capital allocation strategy Q4 Spend ($ in billions)1 Capital allocation order of priority Augmented our pipeline and portfolio with value- enhancing business development while investing $10.6 in our pipeline and business as well as returning cash to shareholders $3.2 $2
Slide 23: Research Update
Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories 23
Slide 24: Clinical and regulatory advancements across cardiometabolic and respiratory pipeline
Clinical and regulatory advancements across cardiometabolic and respiratory pipeline Enlicitide WINREVAIR Phase 3 results support ambition to bring first approved oral EC approved expanded indication in PCSK9i designed to have antibody-like efficacy to broad combination with other PAH therapies in a
Slide 25: Building on our strong legacy in combatting infectious disease
Building on our strong legacy in combatting infectious disease MK-1406 HIV • Potential novel first-in-class, long-acting, strain • Announced positive topline results for DOR/ISL in agnostic antiviral to prevent symptomatic influenza in previously untreated adults with HIV-1 infection certain individ
Slide 26: Progress across oncology development program
Progress across oncology development program Recent approvals Recent trial initiations • Initiated KANDLELIT-007 evaluating calderasib • KEYNOTE-9051: FDA approved KEYTRUDA and (KRAS G12Ci) in combination with KEYTRUDA QLEX KEYTRUDA QLEX in combination with enfortumab vedotin in 1L KRAS G12C-mutant
Slide 27: Significant progress across broad pipeline in 2025
Significant progress across broad pipeline in 2025 18 Positive Phase 3 trial readouts Delivered on “One Pipeline” 21 strategy, advancing internal New Phase 3 trials initiated innovation and discovery and complementing with the best external science Advanced global regulatory approvals and new indica
Slide 28: Key upcoming dates and milestones
Key upcoming dates and milestones HIV Oncology Doravirine/Islatravir • PDUFA date April 28th KEYTRUDA Family1 • KEYNOTE-B96 KEYTRUDA PDUFA date February 20th Islatravir/Lenacapavir3 • KEYNOTE-B96 KEYTRUDA QLEX PDUFA date April 14th • PCDs in April for Phase 3 ISLEND-1 and ISLEND-2 trials in HIV • Pr
Slide 29: 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 30: Appendix
Appendix 30
Slide 31: Q4 2025 GAAP financial results summary
Q4 2025 GAAP financial results summary $ in billions, except EPS amounts Q4 2025 Q4 2024 Change Change Ex-FX Sales $16.4 $15.6 +5% +4% Operating Expenses $6.8 $7.4 -9% -10% (SG&A and R&D)1 Tax Rate 13.4% 10.2% 3.2 pts N/A GAAP EPS2 $1.19 $1.48 -20% -18% 1. Q4 2025 GAAP results include a $150 million
Slide 32: 2025 GAAP financial results summary
2025 GAAP financial results summary $ in billions, except EPS amounts 2025 2024 Change Change Ex-FX Sales $65.0 $64.2 +1% +2% Operating Expenses $26.5 $28.8 -8% -8% (SG&A and R&D)1 Tax Rate 13.3% 14.1% -0.8 pts N/A GAAP EPS2 $7.28 $6.74 +8% +10% 1. GAAP results for 2025 and 2024 include charges of $
Slide 33: Executing upon balanced capital allocation strategy
Executing Capital allocation: upon balanced Trailingcapital twelveallocation months strategy Over the past 12 months $15 Capital allocation order of priority $12 $12.8 Well-positioned balance sheet with $12.8 capacity to fund additional value- Billions $9 $6 $8.2 enhancing business development $3 op
Slide 34: Broad and innovative pipeline to address significant unmet medical needs
Broad and innovative pipeline to address significant unmet medical needs Phase Phase 22 Phase 3 Under regulatory review Oncology Cardiometabolic & Oncology Oncology MK-1022 (patritumab MK-3120 Respiratory MK-1022 (patritumab deruxtecan)1 KEYTRUDA (MK-3475) KEYTRUDA (MK-3475) deruxtecan)1,3 Bladder B