Merck reports higher earnings as Keytruda passes $8 billion mark

Merck & Co (NYSE: MRK) posted third-quarter revenue of $17.3 billion, up 4% year over year, while adjusted earnings rose to $2.58 per share, an increase of 64%. Net income climbed to $6.4 billion from $4 billion a year earlier, driven by strength in oncology and cardiovascular drugs.

Sales of Keytruda (pembrolizumab) exceeded $8 billion for the first time, rising 10% from last year to $8.14 billion, just below analyst expectations of $8.24 billion. The quarter’s growth was tempered by lower demand for Gardasil, which fell 24% due to weaker sales in China and Japan.

Merck is implementing $3 billion in cost cuts by 2027 as it braces for the loss of Keytruda’s patent protection in 2028. It now expects 2025 adjusted earnings between $8.93 and $8.98 per share, narrowing its prior range and factoring in lower tariff-related costs, the Verona Pharma acquisition, and an amended deal with AstraZeneca on Koselugo (selumetinib). Revenue for the year is forecast between $64.5 billion and $65 billion.