What is Merck & Co's earnings per share (EPS)?

Merck & Co (MRK) reported diluted earnings per share of $7.28 for fiscal year 2025. This represents a 8.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Merck & Co Financials

MRK

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Merck & Co (MRK) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 61/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Growth

Merck & Co's revenue grew a modest 1.3% year-over-year to $65.0B. This slow but positive growth earns a score of 36/100.

Leverage

Merck & Co carries a low D/E ratio of 0.89, meaning only $0.89 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 84/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Merck & Co's current ratio of 1.54 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 26/100, which could limit financial flexibility.

Cash Flow

Merck & Co converts 19.0% of revenue into free cash flow ($12.4B). This strong cash generation earns a score of 73/100.

Returns

Merck & Co earns a strong 34.7% return on equity (ROE), meaning it generates $35 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 88/100. This is down from 37.0% the prior year.

Piotroski F-Score Neutral

4/9

Merck & Co passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed

0.90x

For every $1 of reported earnings, Merck & Co generates $0.90 in operating cash flow ($16.5B OCF vs $18.3B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Key Financial Metrics

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Earnings & Revenue

Revenue

$65.0B

YoY+1.3%

5Y CAGR+9.4%

10Y CAGR+5.1%

Merck & Co generated $65.0B in revenue in fiscal year 2025. This represents an increase of 1.3% from the prior year.

EBITDA

N/A

Net Income

$18.3B

YoY+6.6%

5Y CAGR+20.9%

10Y CAGR+15.2%

Merck & Co reported $18.3B in net income in fiscal year 2025. This represents an increase of 6.6% from the prior year.

EPS (Diluted)

$7.28

YoY+8.0%

5Y CAGR+21.2%

10Y CAGR+16.7%

Merck & Co earned $7.28 per diluted share (EPS) in fiscal year 2025. This represents an increase of 8.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$12.4B

YoY-31.7%

5Y CAGR+16.2%

10Y CAGR+0.9%

Merck & Co generated $12.4B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 31.7% from the prior year.

Cash & Debt

$14.6B

YoY+10.0%

5Y CAGR+12.6%

10Y CAGR+5.5%

Merck & Co held $14.6B in cash against $46.8B in long-term debt as of fiscal year 2025.

Dividends Per Share

$3.28

YoY+5.1%

5Y CAGR+5.8%

10Y CAGR+6.1%

Merck & Co paid $3.28 per share in dividends in fiscal year 2025. This represents an increase of 5.1% from the prior year.

Shares Outstanding

2.47B

YoY-2.1%

5Y CAGR-0.5%

10Y CAGR-1.1%

Merck & Co had 2.47B shares outstanding in fiscal year 2025. This represents a decrease of 2.1% from the prior year.

Margins & Returns

Gross Margin

74.8%

YoY-1.5pp

5Y CAGR+7.6pp

10Y CAGR+12.6pp

Merck & Co's gross margin was 74.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.5 percentage points from the prior year.

Operating Margin

N/A

Net Margin

28.1%

YoY+1.4pp

5Y CAGR+11.1pp

10Y CAGR+16.8pp

Merck & Co's net profit margin was 28.1% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.4 percentage points from the prior year.

Return on Equity

34.7%

YoY-2.3pp

5Y CAGR+6.8pp

10Y CAGR+24.8pp

Merck & Co's ROE was 34.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.3 percentage points from the prior year.

Capital Allocation

R&D Spending

$15.8B

YoY-12.0%

5Y CAGR+3.3%

10Y CAGR+8.9%

Merck & Co invested $15.8B in research and development in fiscal year 2025. This represents a decrease of 12.0% from the prior year.

Share Buybacks

$5.1B

YoY+289.3%

5Y CAGR+31.7%

10Y CAGR+2.0%

Merck & Co spent $5.1B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 289.3% from the prior year.

Capital Expenditures

$4.1B

YoY+21.9%

5Y CAGR-1.5%

10Y CAGR+12.4%

Merck & Co invested $4.1B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 21.9% from the prior year.

MRK Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$65.0B+1.3%	$64.2B+6.7%	$60.1B+1.4%	$59.3B+21.7%	$48.7B+17.3%	$41.5B
Cost of Revenue	$16.4B+7.8%	$15.2B-5.8%	$16.1B-7.4%	$17.4B+27.8%	$13.6B+0.1%	$13.6B
Gross Profit	$48.6B-0.7%	$49.0B+11.3%	$44.0B+5.1%	$41.9B+19.4%	$35.1B+25.7%	$27.9B
R&D Expenses	$15.8B-12.0%	$17.9B-41.2%	$30.5B+125.4%	$13.5B+10.6%	$12.2B-8.6%	$13.4B
SG&A Expenses	$10.7B-0.8%	$10.8B+3.0%	$10.5B+4.6%	$10.0B+4.2%	$9.6B+7.6%	$9.0B
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$1.4B+6.8%	$1.3B+10.9%	$1.1B+19.1%	$962.0M+19.4%	$806.0M-3.0%	$831.0M
Income Tax	$2.8B0.0%	$2.8B+85.4%	$1.5B-21.2%	$1.9B+26.1%	$1.5B+13.5%	$1.3B
Net Income	$18.3B+6.6%	$17.1B+4589.6%	$365.0M-97.5%	$14.5B+11.3%	$13.0B+84.6%	$7.1B
EPS (Diluted)	$7.28+8.0%	$6.74+4714.3%	$0.14-97.5%	$5.71+11.1%	$5.14+84.9%	$2.78

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$16.4B-5.1%	$17.3B+9.3%	$15.8B+1.8%	$15.5B-0.6%	$15.6B-6.2%	$16.7B+3.4%	$16.1B+2.1%	$15.8B
Cost of Revenue	$5.6B+44.0%	$3.9B+8.4%	$3.6B+4.0%	$3.4B-10.7%	$3.8B-6.2%	$4.1B+8.9%	$3.7B+5.8%	$3.5B
Gross Profit	$10.8B-19.2%	$13.4B+9.6%	$12.2B+1.1%	$12.1B+2.7%	$11.8B-6.2%	$12.6B+1.7%	$12.4B+1.1%	$12.2B
R&D Expenses	$3.9B-8.2%	$4.2B+4.6%	$4.0B+11.8%	$3.6B-21.0%	$4.6B-21.8%	$5.9B+67.5%	$3.5B-12.3%	$4.0B
SG&A Expenses	$2.9B+10.1%	$2.6B-0.6%	$2.6B+3.8%	$2.6B-10.9%	$2.9B+4.8%	$2.7B-0.3%	$2.7B+10.3%	$2.5B
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$412.0M+26.0%	$327.0M+7.2%	$305.0M-2.6%	$313.0M-4.6%	$328.0M-0.6%	$330.0M+6.5%	$310.0M+2.3%	$303.0M
Income Tax	$457.0M-52.3%	$958.0M+67.8%	$571.0M-30.2%	$818.0M+92.0%	$426.0M-54.1%	$929.0M+70.5%	$545.0M-39.6%	$903.0M
Net Income	$3.0B-48.8%	$5.8B+30.7%	$4.4B-12.8%	$5.1B+35.7%	$3.7B+18.6%	$3.2B-42.1%	$5.5B+14.6%	$4.8B
EPS (Diluted)	N/A	$2.32+31.8%	$1.76-12.4%	$2.01	N/A	$1.24-42.1%	$2.14+14.4%	$1.87

MRK Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$136.9B+16.9%	$117.1B+9.8%	$106.7B-2.3%	$109.2B+3.3%	$105.7B+15.4%	$91.6B
Current Assets	$43.5B+12.2%	$38.8B+20.6%	$32.2B-9.9%	$35.7B+18.0%	$30.3B+9.0%	$27.8B
Cash & Equivalents	$14.6B+10.0%	$13.2B+93.6%	$6.8B-46.1%	$12.7B+56.8%	$8.1B+0.6%	$8.1B
Inventory	$6.7B+9.0%	$6.1B-3.9%	$6.4B+7.6%	$5.9B-0.7%	$6.0B+7.2%	$5.6B
Accounts Receivable	$11.8B+14.6%	$10.3B-0.7%	$10.3B+9.5%	$9.4B+2.4%	$9.2B+35.7%	$6.8B
Goodwill	$21.6B-0.4%	$21.7B+2.2%	$21.2B0.0%	$21.2B-0.3%	$21.3B+12.6%	$18.9B
Total Liabilities	$84.3B+19.0%	$70.8B+2.5%	$69.1B+9.4%	$63.2B-6.4%	$67.5B+1.9%	$66.3B
Current Liabilities	$28.3B-0.3%	$28.4B+10.6%	$25.7B+6.0%	$24.2B+1.5%	$23.9B-12.6%	$27.3B
Long-Term Debt	$46.8B+35.7%	$34.5B+2.3%	$33.7B+17.2%	$28.7B-6.3%	$30.7B+21.0%	$25.4B
Total Equity	$52.6B+13.6%	$46.3B+23.2%	$37.6B-18.3%	$46.0B+20.4%	$38.2B+50.8%	$25.3B
Retained Earnings	$73.1B+15.9%	$63.1B+17.0%	$53.9B-11.8%	$61.1B+13.8%	$53.7B+13.4%	$47.4B

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$136.9B+5.7%	$129.5B+10.2%	$117.5B+2.1%	$115.1B-1.7%	$117.1B-0.4%	$117.5B+4.4%	$112.6B+6.4%	$105.8B
Current Assets	$43.5B-8.5%	$47.6B+28.3%	$37.1B+4.4%	$35.5B-8.5%	$38.8B-3.9%	$40.4B+5.6%	$38.2B+21.5%	$31.4B
Cash & Equivalents	$14.6B-19.8%	$18.2B+126.9%	$8.0B-7.2%	$8.6B-34.8%	$13.2B-9.3%	$14.6B+29.1%	$11.3B+102.6%	$5.6B
Inventory	$6.7B+3.3%	$6.4B-2.4%	$6.6B+6.5%	$6.2B+1.4%	$6.1B-2.2%	$6.2B-3.5%	$6.5B-0.6%	$6.5B
Accounts Receivable	$11.8B-2.8%	$12.1B+2.3%	$11.8B+9.8%	$10.8B+5.0%	$10.3B-9.7%	$11.4B-2.2%	$11.6B+2.4%	$11.4B
Goodwill	$21.6B0.0%	$21.6B0.0%	$21.6B-0.4%	$21.7B+0.1%	$21.7B-0.1%	$21.7B+2.5%	$21.2B-0.1%	$21.2B
Total Liabilities	$84.3B+8.4%	$77.7B+13.4%	$68.5B+2.6%	$66.8B-5.7%	$70.8B-3.1%	$73.0B+5.8%	$69.0B+5.4%	$65.5B
Current Liabilities	$28.3B-1.1%	$28.6B+10.0%	$26.0B+3.4%	$25.2B-11.4%	$28.4B-3.9%	$29.6B+13.5%	$26.1B+3.8%	$25.1B
Long-Term Debt	$46.8B+17.0%	$40.0B+17.7%	$34.0B+1.4%	$33.5B-2.8%	$34.5B-1.5%	$35.0B+0.8%	$34.7B+11.5%	$31.1B
Total Equity	$52.6B+1.5%	$51.9B+5.8%	$49.0B+1.4%	$48.3B+4.4%	$46.3B+4.1%	$44.5B+2.1%	$43.6B+8.0%	$40.4B
Retained Earnings	$73.1B+1.2%	$72.2B+5.5%	$68.5B+3.6%	$66.1B+4.8%	$63.1B+2.7%	$61.4B+2.0%	$60.2B+6.2%	$56.7B

MRK Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$16.5B-23.3%	$21.5B+65.1%	$13.0B-31.9%	$19.1B+45.5%	$13.1B+28.0%	$10.3B
Capital Expenditures	$4.1B+21.9%	$3.4B-12.7%	$3.9B-12.0%	$4.4B-1.3%	$4.4B+0.4%	$4.4B
Free Cash Flow	$12.4B-31.7%	$18.1B+97.9%	$9.1B-37.8%	$14.7B+69.6%	$8.7B+48.9%	$5.8B
Investing Cash Flow	-$13.7B-77.7%	-$7.7B+45.1%	-$14.1B-183.9%	-$5.0B	N/A	-$9.4B
Financing Cash Flow	-$1.9B+72.7%	-$7.0B-46.2%	-$4.8B+47.3%	-$9.1B	N/A	-$2.8B
Dividends Paid	$8.2B+4.3%	$7.8B+5.3%	$7.4B+6.2%	$7.0B+6.1%	$6.6B+6.4%	$6.2B
Share Buybacks	$5.1B+289.3%	$1.3B-3.0%	$1.3B	$0-100.0%	$840.0M-34.4%	$1.3B

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$2.9B-63.5%	$7.8B+137.5%	$3.3B+31.7%	$2.5B-27.5%	$3.5B-62.9%	$9.3B+64.8%	$5.6B+82.4%	$3.1B
Capital Expenditures	$1.0B+4.7%	$987.0M+29.2%	$764.0M-42.5%	$1.3B+41.7%	$937.0M+19.7%	$783.0M-1.0%	$791.0M-8.1%	$861.0M
Free Cash Flow	$1.8B-73.3%	$6.8B+170.3%	$2.5B+115.8%	$1.2B-53.4%	$2.5B-70.5%	$8.5B+75.6%	$4.8B+117.4%	$2.2B
Investing Cash Flow	-$11.2B-3858.0%	-$283.0M+63.2%	-$770.0M+48.2%	-$1.5B-3.0%	-$1.4B+62.4%	-$3.8B-259.7%	-$1.1B+22.3%	-$1.4B
Financing Cash Flow	$4.8B+80.1%	$2.6B+174.2%	-$3.6B+38.2%	-$5.8B-91.3%	-$3.0B-24.1%	-$2.4B-299.4%	$1.2B+143.2%	-$2.8B
Dividends Paid	$2.0B-0.6%	$2.0B-2.2%	$2.1B+1.3%	$2.0B+5.1%	$2.0B-0.1%	$2.0B-1.7%	$2.0B+1.8%	$1.9B
Share Buybacks	$1.3B-5.4%	$1.3B-1.6%	$1.3B+15.5%	$1.2B+138.0%	$489.0M+10.1%	$444.0M+76.9%	$251.0M+105.7%	$122.0M

MRK Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	74.8%-1.5pp	76.3%+3.1pp	73.2%+2.5pp	70.6%-1.4pp	72.0%+4.8pp	67.2%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	28.1%+1.4pp	26.7%+26.1pp	0.6%-23.9pp	24.5%-2.3pp	26.8%+9.8pp	17.0%
Return on Equity	34.7%-2.3pp	37.0%+36.0pp	1.0%-30.6pp	31.6%-2.6pp	34.2%+6.3pp	27.9%
Return on Assets	13.3%-1.3pp	14.6%+14.3pp	0.3%-13.0pp	13.3%+1.0pp	12.3%+4.6pp	7.7%
Current Ratio	1.54+0.2	1.36+0.1	1.25-0.2	1.47+0.2	1.27+0.3	1.02
Debt-to-Equity	0.89+0.1	0.74-0.2	0.90+0.3	0.63-0.2	0.80-0.2	1.00
FCF Margin	19.0%-9.2pp	28.2%+13.0pp	15.2%-9.6pp	24.8%+7.0pp	17.8%+3.8pp	14.0%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	66.1%-11.5pp	77.7%+0.2pp	77.5%-0.5pp	78.0%+2.5pp	75.5%0.0pp	75.5%-1.2pp	76.8%-0.8pp	77.6%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	18.1%-15.4pp	33.5%+5.5pp	28.0%-4.7pp	32.7%+8.8pp	24.0%+5.0pp	18.9%-14.9pp	33.9%+3.7pp	30.2%
Return on Equity	5.6%-5.5pp	11.2%+2.1pp	9.0%-1.5pp	10.5%+2.4pp	8.1%+1.0pp	7.1%-5.4pp	12.5%+0.7pp	11.8%
Return on Assets	2.2%-2.3pp	4.5%+0.7pp	3.8%-0.6pp	4.4%+1.2pp	3.2%+0.5pp	2.7%-2.1pp	4.8%+0.3pp	4.5%
Current Ratio	1.54-0.1	1.66+0.2	1.42+0.0	1.41+0.0	1.360.0	1.36-0.1	1.47+0.2	1.25
Debt-to-Equity	0.89+0.1	0.77+0.1	0.690.0	0.69-0.1	0.74-0.0	0.79-0.0	0.80+0.0	0.77
FCF Margin	11.1%-28.4pp	39.6%+23.6pp	16.0%+8.5pp	7.5%-8.5pp	16.1%-35.0pp	51.1%+21.0pp	30.1%+16.0pp	14.1%

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Frequently Asked Questions

What is Merck & Co's annual revenue?

Merck & Co (MRK) reported $65.0B in total revenue for fiscal year 2025. This represents a 1.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Merck & Co's revenue growing?

Merck & Co (MRK) revenue grew by 1.3% year-over-year, from $64.2B to $65.0B in fiscal year 2025.

Is Merck & Co profitable?

Yes, Merck & Co (MRK) reported a net income of $18.3B in fiscal year 2025, with a net profit margin of 28.1%.

How much debt does Merck & Co have?

As of fiscal year 2025, Merck & Co (MRK) had $14.6B in cash and equivalents against $46.8B in long-term debt.

What is Merck & Co's gross margin?

Merck & Co (MRK) had a gross margin of 74.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Merck & Co's net profit margin?

Merck & Co (MRK) had a net profit margin of 28.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Merck & Co pay dividends?

Yes, Merck & Co (MRK) paid $3.28 per share in dividends during fiscal year 2025.

What is Merck & Co's return on equity (ROE)?

Merck & Co (MRK) has a return on equity of 34.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Merck & Co's free cash flow?

Merck & Co (MRK) generated $12.4B in free cash flow during fiscal year 2025. This represents a -31.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Merck & Co's operating cash flow?

Merck & Co (MRK) generated $16.5B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Merck & Co's total assets?

Merck & Co (MRK) had $136.9B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Merck & Co's capital expenditures?

Merck & Co (MRK) invested $4.1B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Merck & Co spend on research and development?

Merck & Co (MRK) invested $15.8B in research and development during fiscal year 2025.

Does Merck & Co buy back shares?

Yes, Merck & Co (MRK) spent $5.1B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Merck & Co have outstanding?

Merck & Co (MRK) had 2.47B shares outstanding as of fiscal year 2025.

What is Merck & Co's current ratio?

Merck & Co (MRK) had a current ratio of 1.54 as of fiscal year 2025, which is generally considered healthy.

What is Merck & Co's debt-to-equity ratio?

Merck & Co (MRK) had a debt-to-equity ratio of 0.89 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Merck & Co's return on assets (ROA)?

Merck & Co (MRK) had a return on assets of 13.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Merck & Co's Piotroski F-Score?

Merck & Co (MRK) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Merck & Co's earnings high quality?

Merck & Co (MRK) has an earnings quality ratio of 0.90x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Merck & Co?

Merck & Co (MRK) scores 61 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.