Merck & Co (MRK) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Sep 11, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 7, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MRK SEC filings page.
Merck & Co (MRK) reported $66.6B in revenue over the twelve months to Jun 30, 2026, up 4.6% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Merck’s dominant mechanic is cash-conversion pressure: earnings expanded while working capital, reinvestment, and shareholder distributions absorbed more cash.
The key shift is earnings quality: net income rose to$18.3B in FY2025, but operating cash flow fell to$16.5B from FY2024, so accounting profit expanded without matching cash production. Receivables and inventory both increased while capital expenditures also rose, indicating that cash was absorbed by working capital and reinvestment rather than simply reflecting weaker reported profitability.
Gross margin compressed from
The balance sheet became more leveraged, with debt-to-equity rising from 0.7x to 0.9x as the asset base expanded. Meanwhile, the current ratio improved from 1.4x to 1.5x, indicating stronger short-term coverage even as long-term financing obligations increased; buybacks also accelerated while dividends continued rising.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Merck & Co's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Not available for Merck & Co, and counted as zero in the overall score.
Merck & Co's revenue grew a modest 1.3% year-over-year to $65.0B. This slow but positive growth earns a score of 45/100.
Merck & Co has a moderate D/E ratio of 0.89. This balance of debt and equity financing earns a leverage score of 50/100.
Merck & Co's current ratio of 1.54 indicates adequate short-term liquidity, earning a score of 43/100. The company can meet its near-term obligations, though with limited headroom.
Merck & Co converts 19.0% of revenue into free cash flow ($12.4B). This strong cash generation earns a score of 87/100.
Not available for Merck & Co, and counted as zero in the overall score.
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.
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
Earnings & Revenue
Merck & Co generated $16.6B in revenue in Q2 2026. This represents an increase of 5.1% from the same quarter a year earlier. Against the prior quarter it is up 2.0%.
Merck & Co reported -$1.3B in net income in Q2 2026. This represents a decrease of 130.2% from the same quarter a year earlier. Against the prior quarter it is up 68.5%.
Merck & Co earned -$0.54 per diluted share (EPS) in Q2 2026. This represents a decrease of 130.7% from the same quarter a year earlier. Against the prior quarter it is up 68.6%.
Not reported for Q2 2026.
Cash & Balance Sheet
Merck & Co generated $4.5B in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 77.0% from the same quarter a year earlier. Against the prior quarter it is up 53.0%.
Merck & Co held $6.8B in cash against $51.1B in long-term debt as of Q2 2026.
Merck & Co paid $0.85 per share in dividends in Q2 2026. This represents an increase of 4.9% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Merck & Co's gross margin was 73.5% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 4.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.7 percentage points.
Merck & Co's net profit margin was -8.0% in Q2 2026, showing the share of revenue converted to profit. This is down 36.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 18.0 percentage points.
Merck & Co's ROE was -3.2% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 12.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 6.1 percentage points.
Not reported for Q2 2026.
Capital Allocation
Merck & Co invested $9.7B in research and development in Q2 2026. This represents an increase of 140.6% from the same quarter a year earlier. Against the prior quarter it is down 22.6%.
Merck & Co spent $757.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 43.7% from the same quarter a year earlier. Against the prior quarter it is down 13.4%.
Merck & Co invested $893.0M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 16.9% from the same quarter a year earlier. Against the prior quarter it is down 9.9%.
MRK Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $16.6B+5.1% | $16.3B+4.9% | $16.4B+5.0% | $17.3B+3.7% | $15.8B-1.9% | $15.5B-1.6% | $15.6B+6.8% | $16.7B+4.4% |
| Cost of Revenue | $4.4B+23.6% | $4.2B+22.7% | $5.6B+45.0% | $3.9B-5.5% | $3.6B-5.0% | $3.4B-3.4% | $3.8B-2.1% | $4.1B-4.3% |
| Gross Profit | $12.2B-0.3% | $12.1B-0.2% | $10.8B-8.0% | $13.4B+6.7% | $12.2B-1.0% | $12.1B-1.0% | $11.8B+10.0% | $12.6B+7.5% |
| R&D Expenses | $9.7B+140.6% | $12.6B+247.7% | $3.9B-15.2% | $4.2B-27.8% | $4.0B+15.7% | $3.6B-9.3% | $4.6B-52.4% | $5.9B+77.3% |
| SG&A Expenses | $2.9B+9.6% | $2.7B+5.8% | $2.9B+1.3% | $2.6B-3.6% | $2.6B-3.3% | $2.6B+2.8% | $2.9B+2.1% | $2.7B+8.4% |
| Interest Expense | $525.0M+72.1% | $479.0M+53.0% | $412.0M+25.6% | $327.0M-0.9% | $305.0M-1.6% | $313.0M+3.3% | $328.0M+5.8% | $330.0M+4.1% |
| Income Tax | $654.0M+14.5% | $709.0M-13.3% | $457.0M+7.3% | $958.0M+3.1% | $571.0M+4.8% | $818.0M-9.4% | $426.0M+152.0% | $929.0M+6.8% |
| Net Income | -$1.3B-130.2% | -$4.2B-183.5% | $3.0B-20.8% | $5.8B+83.2% | $4.4B-18.8% | $5.1B+6.7% | $3.7B+405.3% | $3.2B-33.5% |
| EPS (Basic) | -$0.54-130.7% | -$1.72-185.6% | $1.21-18.2% | $2.32+85.6% | $1.76-18.1% | $2.01+6.9% | $1.48+402.0% | $1.25-33.2% |
| EPS (Diluted) | -$0.54-130.7% | -$1.72-185.6% | $1.20-18.9% | $2.32+87.1% | $1.76-17.8% | $2.01+7.5% | $1.48+408.3% | $1.24-33.3% |
| Diluted Shares (Avg) | 2.47B-1.7% | 2.47B-2.3% | N/A | 2.50B-1.7% | 2.51B-1.2% | 2.53B-0.5% | N/A | 2.54B-0.2% |
Not reported in any period shown, so not listed: Operating Income, EBITDA.
MRK Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $129.8B+10.4% | $128.7B+11.8% | $136.9B+16.9% | $129.5B+10.2% | $117.5B+4.3% | $115.1B+8.8% | $117.1B+9.8% | $117.5B+10.1% |
| Current Assets | $36.7B-1.0% | $35.0B-1.4% | $43.5B+12.2% | $47.6B+17.8% | $37.1B-3.0% | $35.5B+12.9% | $38.8B+20.6% | $40.4B+26.3% |
| Cash & Equivalents | $6.8B-14.5% | $5.3B-38.3% | $14.6B+10.0% | $18.2B+24.5% | $8.0B-29.2% | $8.6B+54.7% | $13.2B+93.6% | $14.6B+69.6% |
| Short-Term Investments | $292.0M-52.5% | $375.0M-37.4% | $0-100.0% | $45.0M | $615.0M+1130.0% | $599.0M+1397.5% | $447.0M+77.4% | $0-100.0% |
| Inventory | $6.2B-6.0% | $6.5B+4.6% | $6.7B+9.0% | $6.4B+3.2% | $6.6B+2.0% | $6.2B-4.8% | $6.1B-3.9% | $6.2B+1.8% |
| Accounts Receivable | $12.6B+6.1% | $12.2B+13.2% | $11.8B+14.6% | $12.1B+6.5% | $11.8B+1.8% | $10.8B-5.1% | $10.3B-0.7% | $11.4B+9.5% |
| Long-Term Investments | $1.2B+57.9% | $1.1B+79.4% | $956.0M+106.5% | $1.1B+94.3% | $774.0M+116.8% | $616.0M+120.0% | $463.0M+83.7% | $575.0M-56.0% |
| Goodwill | $21.6B0.0% | $21.6B-0.5% | $21.6B-0.4% | $21.6B-0.5% | $21.6B+2.0% | $21.7B+2.4% | $21.7B+2.2% | $21.7B+2.4% |
| Total Liabilities | $87.9B+28.2% | $82.8B+24.0% | $84.3B+19.0% | $77.7B+6.4% | $68.5B-0.8% | $66.8B+2.0% | $70.8B+2.5% | $73.0B+11.5% |
| Current Liabilities | $27.7B+6.5% | $26.9B+7.0% | $28.3B-0.3% | $28.6B-3.2% | $26.0B-0.1% | $25.2B+0.3% | $28.4B+10.6% | $29.6B+28.1% |
| Non-Current Liabilities | $60.1B+41.5% | $55.9B+34.2% | $55.9B+32.0% | $49.1B+12.9% | $42.5B-1.2% | $41.6B+3.0% | $42.4B-2.4% | $43.4B+2.5% |
| Long-Term Debt | $51.1B+50.4% | $46.7B+39.4% | $46.8B+35.7% | $40.0B+14.3% | $34.0B-2.2% | $33.5B+7.5% | $34.5B+2.3% | $35.0B+3.0% |
| Total Equity | $41.9B-14.4% | $45.9B-5.1% | $52.6B+13.6% | $51.9B+16.5% | $49.0B+12.4% | $48.3B+19.7% | $46.3B+23.2% | $44.5B+7.9% |
| Retained Earnings | $63.3B-7.6% | $66.7B+0.9% | $73.1B+15.9% | $72.2B+17.7% | $68.5B+13.8% | $66.1B+16.6% | $63.1B+17.0% | $61.4B+7.5% |
MRK Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $5.4B+63.1% | $3.9B+56.7% | $2.9B-17.2% | $7.8B-15.8% | $3.3B-41.6% | $2.5B-19.1% | $3.5B+1302.4% | $9.3B+20.4% |
| Depreciation & Amortization | $599.0M+15.6% | $581.0M+15.7% | $1.5B+186.0% | $532.0M-3.8% | $518.0M0.0% | $502.0M-1.8% | $522.0M+4.0% | $553.0M+22.3% |
| Stock-Based Compensation | N/A | $185.0M-5.1% | N/A | N/A | N/A | $195.0M+10.8% | N/A | N/A |
| Capital Expenditures | $893.0M+16.9% | $991.0M-25.4% | $1.0B+10.2% | $987.0M+26.1% | $764.0M-3.4% | $1.3B+54.2% | $937.0M-5.3% | $783.0M-13.2% |
| Free Cash Flow | $4.5B+77.0% | $2.9B+149.7% | $1.8B-27.4% | $6.8B-19.7% | $2.5B-47.8% | $1.2B-47.4% | $2.5B+438.2% | $8.5B+24.8% |
| Investing Cash Flow | -$5.6B-627.5% | -$10.2B-586.6% | -$11.2B-675.7% | -$283.0M+92.6% | -$770.0M+28.0% | -$1.5B-8.1% | -$1.4B-2824.5% | -$3.8B-1051.2% |
| Financing Cash Flow | $1.8B+149.6% | -$3.0B+48.2% | $4.8B+257.9% | $2.6B+208.8% | -$3.6B-392.4% | -$5.8B-104.5% | -$3.0B-34.0% | -$2.4B+43.2% |
| Dividends Paid | $2.1B+3.2% | $2.1B+2.7% | $2.0B+3.4% | $2.0B+4.0% | $2.1B+4.6% | $2.0B+5.1% | $2.0B+5.3% | $2.0B+5.3% |
| Share Buybacks | $757.0M-43.7% | $874.0M-24.9% | $1.3B+156.0% | $1.3B+198.0% | $1.3B+435.9% | $1.2B+854.1% | $489.0M+24.4% | $444.0M-4.7% |
MRK Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.5%-4.0pp | 74.2%-3.7pp | 66.1%-9.4pp | 77.7%+2.2pp | 77.5%+0.7pp | 78.0%+0.4pp | 75.5%+2.2pp | 75.5%+2.2pp |
| Net Margin | -8.0%-36.1pp | -26.0%-58.7pp | 18.1%-5.9pp | 33.5%+14.5pp | 28.0%-5.8pp | 32.7%+2.5pp | 24.0%+32.3pp | 18.9%-10.8pp |
| Return on Equity | -3.2%-12.2pp | -9.2%-19.8pp | 5.6%-2.4pp | 11.2%+4.1pp | 9.0%-3.5pp | 10.5%-1.3pp | 8.1%+11.3pp | 7.1%-4.4pp |
| Return on Assets | -1.0%-4.8pp | -3.3%-7.7pp | 2.2%-1.0pp | 4.5%+1.8pp | 3.8%-1.1pp | 4.4%-0.1pp | 3.2%+4.3pp | 2.7%-1.8pp |
| Current Ratio | 1.32-0.1x | 1.30-0.1x | 1.54+0.2x | 1.66+0.3x | 1.420.0x | 1.41+0.2x | 1.36+0.1x | 1.360.0x |
| Debt-to-Equity | 1.22+0.5x | 1.02+0.3x | 0.89+0.1x | 0.770.0x | 0.69-0.1x | 0.69-0.1x | 0.74-0.2x | 0.790.0x |
| Asset Turnover | 0.130.0x | 0.130.0x | 0.120.0x | 0.130.0x | 0.130.0x | 0.130.0x | 0.130.0x | 0.140.0x |
| FCF Margin | 27.0%+11.0pp | 18.0%+10.4pp | 11.1%-5.0pp | 39.6%-11.5pp | 16.0%-14.1pp | 7.5%-6.6pp | 16.1%+21.2pp | 51.1%+8.4pp |
Not reported in any period shown, so not listed: Operating Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Merck & Co MRK | FY2025 | $65.0B | $18.3B | 28.1% | $357.0B | 38/100 |
| AstraZeneca AZN | FY2025 | $58.7B | $10.2B | 17.4% | $243.4B | 43/100 |
| Novartis NVS | FY2025 | N/A | $14.0B | N/A | $261.3B | — |
| Johnson & Johnson JNJ | FY2025 | $94.2B | $26.8B | 28.5% | $643.6B | 37/100 |
| AbbVie Inc. ABBV | FY2025 | $61.2B | $4.2B | 6.9% | $443.4B | 58/100 |
Where Merck & Co Ranks
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.
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 P/E ratio?
Merck & Co (MRK) trades at 113x earnings, its market capitalization divided by net income of $3.2B net income, trailing 12 months to June 30, 2026. The market capitalization is $357.0B as of Sep 11, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Merck & Co's price-to-sales ratio?
Merck & Co (MRK) trades at 5.4x sales, its market capitalization divided by revenue of $66.6B revenue, trailing 12 months to June 30, 2026. The market capitalization is $357.0B as of Sep 11, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
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 to 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 38 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.