Merck & Co Financials
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).
High-margin product economics still fund heavy reinvestment, but FY2025 showed weaker cash conversion as the balance sheet expanded.
In the latest year, net income reached$18.3B even as operating cash flow fell to$16.5B from the prior year's stronger level. That divergence, alongside a rise in long-term debt to$46.8B , suggests the business remained highly profitable but less cash-abundant than its earnings headline implies.
Across the last three years, margin resilience stands out: gross margin stayed above
Free cash flow of
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.
Merck & Co's revenue grew a modest 1.3% year-over-year to $65.0B. This slow but positive growth earns a score of 46/100.
Merck & Co has a moderate D/E ratio of 0.89. This balance of debt and equity financing earns a leverage score of 49/100.
Merck & Co's current ratio of 1.54 indicates adequate short-term liquidity, earning a score of 42/100. 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 88/100.
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 $65.0B in revenue in fiscal year 2025. This represents an increase of 1.3% from the prior year.
Merck & Co reported $18.3B in net income in fiscal year 2025. This represents an increase of 6.6% from the prior year.
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
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.
Merck & Co held $14.6B in cash against $46.8B in long-term debt as of fiscal year 2025.
Merck & Co paid $3.28 per share in dividends in fiscal year 2025. This represents an increase of 5.1% from the prior year.
Merck & Co had 2.47B shares outstanding in fiscal year 2025. This represents a decrease of 2.1% from the prior year.
Margins & Returns
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.
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.
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
Merck & Co invested $15.8B in research and development in fiscal year 2025. This represents a decrease of 12.0% from the prior year.
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.
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 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $16.3B-0.7% | $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 |
| Cost of Revenue | $4.2B-24.4% | $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 |
| Gross Profit | $12.1B+11.4% | $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 |
| R&D Expenses | $12.6B+224.0% | $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 |
| SG&A Expenses | $2.7B-6.9% | $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 |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | $479.0M+16.3% | $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 |
| Income Tax | $709.0M+55.1% | $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 |
| Net Income | -$4.2B-243.1% | $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 |
| EPS (Diluted) | $-1.72 | N/A | $2.32+31.8% | $1.76-12.4% | $2.01 | N/A | $1.24-42.1% | $2.14 |
MRK Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $128.7B-6.0% | $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 |
| Current Assets | $35.0B-19.5% | $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 |
| Cash & Equivalents | $5.3B-63.4% | $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 |
| Inventory | $6.5B-2.7% | $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 |
| Accounts Receivable | $12.2B+3.7% | $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 |
| Goodwill | $21.6B0.0% | $21.6B0.0% | $21.6B0.0% | $21.6B-0.4% | $21.7B+0.1% | $21.7B-0.1% | $21.7B+2.5% | $21.2B |
| Total Liabilities | $82.8B-1.7% | $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 |
| Current Liabilities | $26.9B-4.9% | $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 |
| Long-Term Debt | $46.7B-0.2% | $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 |
| Total Equity | $45.9B-12.8% | $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 |
| Retained Earnings | $66.7B-8.7% | $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 |
MRK Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.9B+37.1% | $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 |
| Capital Expenditures | $991.0M-4.1% | $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 |
| Free Cash Flow | $2.9B+60.5% | $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 |
| Investing Cash Flow | -$10.2B+8.8% | -$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 |
| Financing Cash Flow | -$3.0B-162.7% | $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 |
| Dividends Paid | $2.1B+4.3% | $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 |
| Share Buybacks | $874.0M-30.2% | $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 |
MRK Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.2%+8.1pp | 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% |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | -26.0%-44.1pp | 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% |
| Return on Equity | -9.2%-14.9pp | 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% |
| Return on Assets | -3.3%-5.5pp | 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% |
| Current Ratio | 1.30-0.2 | 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 |
| Debt-to-Equity | 1.02+0.1 | 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 |
| FCF Margin | 18.0%+6.9pp | 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% |
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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.
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 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.