Merck Q3 2026 earnings fall 12% as sales rise 5%

The updated full-year outlook sets non-GAAP EPS at $2.77 to $2.82, with specified one-time charges related to Cidara, Terns and SciBrunch.

Rhea-AI Filing Summary

Merck & Co., Inc. (MRK) reported third-quarter 2026 sales of $18.085 billion, up 5% from $17.276 billion a year earlier. GAAP net income attributable to Merck fell 12% to $5.065 billion, and diluted GAAP EPS decreased 12% to $2.04. Non-GAAP net income was $6.159 billion, down 4%, while non-GAAP EPS was $2.49, down 3%; both measures exclude specified items.

Pharmaceutical sales increased 4% to $16.268 billion and Animal Health sales rose 4% to $1.676 billion. WINREVAIR sales were $694 million, up 93%, while JANUVIA/JANUMET fell 39% to $380 million and BRIDION fell 67% to $144 million. Gross margin declined to 72.9% from 77.7%; Merck cited higher amortization of intangible assets, restructuring costs and production costs.

Merck updated its full-year 2026 outlook to sales of $66.8 billion to $67.3 billion and non-GAAP EPS of $2.77 to $2.82. The EPS range includes one-time charges of $9.0 billion related to the Cidara acquisition, $5.7 billion related to the Terns acquisition and $400 million related to the SciBrunch license agreement. The outlook also includes positive foreign-exchange impacts of approximately 1% on sales and approximately $0.15 per share on EPS.

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Positive

• Moderate pointThird-quarter sales increased 5% to $18.085 billion.

Negative

• Moderate pointGAAP net income fell 12% to $5.065 billion in the third quarter.

Filing Explained

For the first nine months of 2026, Merck reported an attributable net loss and a $0.21 diluted loss per share; potential dilutive shares were excluded from that loss-per-share calculation.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Sales: $18.085 billion GAAP net income attributable to Merck: $5.065 billion Non-GAAP net income: $6.159 billion +5 more

8 metrics

Sales $18.085 billion Third quarter 2026; up 5% year over year

GAAP net income attributable to Merck $5.065 billion Third quarter 2026; down 12% year over year

Non-GAAP net income $6.159 billion Third quarter 2026; down 4% year over year

Diluted GAAP EPS $2.04 per share Third quarter 2026; down 12% year over year

Non-GAAP EPS $2.49 per share Third quarter 2026; down 3% year over year

WINREVAIR sales $694 million Third quarter 2026; up 93% year over year

Full-year sales outlook $66.8 billion to $67.3 billion Full-year 2026

Full-year non-GAAP EPS outlook $2.77 to $2.82 per share Full-year 2026

Key Terms

non-GAAP EPS, gross margin, alliance revenue, effective income tax rate

4 terms

non-GAAP EPS financial

"non-GAAP EPS was $2.49"

Non-GAAP EPS is a measure of a company's profit per share that excludes certain expenses or income items that are included in standard accounting reports. It is used by investors to get a clearer picture of the company's core performance, much like removing one-time costs from a personal budget to see regular spending habits. This adjusted figure helps investors compare companies more consistently and understand their ongoing profitability.

gross margin financial

"Gross margin was 72.9%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

alliance revenue financial

"Alliance revenue for this product represents the Company's share of profits"

effective income tax rate financial

"The effective income tax rate for the third quarter of 2026 was 8.9%"

The effective income tax rate is the share of a company’s pre-tax profit that it actually pays in income taxes, calculated by dividing total tax expense by pre-tax income. For investors, it shows how much tax reduces a company’s earnings — like knowing the difference between a car’s sticker price and what you actually pay after fees and discounts — and helps compare profitability and cash available for growth or dividends.

Earnings Snapshot

Sales: $18.085 billion · Guidance included

Third quarter 2026

Sales $18.085 billion 5%

GAAP net income attributable to Merck $5.065 billion -12%

Non-GAAP net income $6.159 billion -4%

Diluted GAAP EPS $2.04 per share -12%

Non-GAAP EPS $2.49 per share -3%

Guidance

Full-year 2026 sales of $66.8 billion to $67.3 billion and non-GAAP EPS of $2.77 to $2.82 per share.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Merck (MRK)'s third-quarter 2026 sales and earnings?

Merck reported third-quarter 2026 sales of $18.085 billion, GAAP net income attributable to Merck of $5.065 billion, and diluted GAAP EPS of $2.04. Sales increased 5% year over year; GAAP net income and EPS each decreased 12%.

What is Merck (MRK)'s 2026 financial outlook?

Merck's full-year 2026 outlook is sales of $66.8 billion to $67.3 billion and non-GAAP EPS of $2.77 to $2.82. The EPS range includes one-time charges of $9.0 billion related to the Cidara acquisition, $5.7 billion related to the Terns acquisition, and $400 million related to the SciBrunch license agreement.

What drove Merck (MRK)'s pharmaceutical sales in the third quarter?

Merck attributed pharmaceutical sales growth primarily to KEYTRUDA/KEYTRUDA QLEX, WINREVAIR, GARDASIL/GARDASIL 9, WELIREG and ENFLONSIA, along with OHTUVAYRE sales. Growth benefited from purchase timing by approximately $550 million and was partly offset by declines in BRIDION, JANUVIA/JANUMET and LAGEVRIO and lower Koselugo alliance revenue.

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Available on EDGAR 10/29/2026 - 06:43 AM EDT Accepted by SEC EDGAR 10/29/2026 - 06:43 AM EDT Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 29, 2026 (October 29, 2026)

Merck & Co., Inc.

(Exact name of registrant as specified in its charter)

New Jersey (State or other jurisdiction of incorporation) 1-6571 (Commission File Number) 22-1918501 (I.R.S Employer Identification No.)

126 East Lincoln Avenue

Rahway     New Jersey     07065

(Address of principal executive offices)  (Zip Code)

(Registrant’s telephone number, including area code) (908) 740-4000

Not applicable

(Former name, former address and former fiscal year, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock ($0.50 par value)		MRK		New York Stock Exchange
3.250% Notes due 2032		MRK/32		New York Stock Exchange
2.500% Notes due 2034		MRK/34		New York Stock Exchange
1.375% Notes due 2036		MRK 36A		New York Stock Exchange
3.500% Notes due 2037		MRK/37		New York Stock Exchange
3.700% Notes due 2044		MRK/44		New York Stock Exchange
3.750% Notes due 2054		MRK/54		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Item 2.02. Results of Operations and Financial Condition.

The following information, including the exhibits hereto, is being furnished pursuant to this Item 2.02.

Incorporated by reference is a press release issued by Merck & Co., Inc. on October 29, 2026, regarding earnings for the third quarter of 2026, attached as Exhibit 99.1. Also incorporated by reference is certain supplemental information not included in the press release, attached as Exhibit 99.2.

This information shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and is not incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)  Exhibits

Exhibit 99.1	Press release issued October 29, 2026, regarding earnings for the third quarter of 2026
Exhibit 99.2	Certain supplemental information not included in the press release
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Merck & Co., Inc.
Date: October 29, 2026	By:	/s/ Kelly E. W. Grez
		Kelly E. W. Grez
		Corporate Secretary

Exhibit 99.1

- 1 -

News Release

Merck & Co., Inc., Rahway, N.J., USA Announces Third-Quarter 2026 Financial Results; Highlights Multiple Milestones Advancing Broad, Diverse Pipeline

Sales Growth Reflects Continued Strength in Oncology and Animal Health, Plus Contributions From Other Products in Broader Portfolio, Including WINREVAIR

Financial Highlights

- Total Worldwide Sales Were $18.1 Billion (5% Growth; 4% Growth ex-FX)

o KEYTRUDA/KEYTRUDA QLEX¹ Sales Were $8.6 Billion (6% Growth; 6% Growth ex-FX); Includes KEYTRUDA QLEX Sales of $830 Million

o WINREVAIR Sales Were $694 Million (93% Growth; 94% Growth ex-FX)

o Animal Health Sales Were $1.7 Billion (4% Growth; 3% Growth ex-FX)

- GAAP EPS Was $2.04; Non-GAAP EPS Was $2.49; GAAP and Non-GAAP EPS Include a One-Time Charge of $0.12 per Share Related to a Global License Agreement With SciBrunch

Pipeline & Portfolio Highlights

- Presented First-Time Pivotal Data From Phase 3 Trials Across Robust Oncology Pipeline at ESMO Congress 2026, Including:

o TroFuse-005 Trial Evaluating Sacituzumab Tirumotecan (sac-TMT) in Certain Patients With Advanced or Recurrent Endometrial Cancer; U.S. FDA Accepted for Priority Review a Biologics License Application Based on These Data

o INTerpath-001 Trial Evaluating Intismeran Autogene Plus KEYTRUDA as Adjuvant Treatment for Patients With Resected Stage IIB-IV Melanoma, in Collaboration With Moderna

- Announced Positive Phase 2b Results in Moderate to Severe Hidradenitis Suppurativa From Clinical Study of Investigational Immunology Candidate Tulisokibart

- Presented One-Year Results From Phase 2b/3 BRUNELLO Trial Evaluating Remigromig in Adults With Diabetic Macular Edema

Full-Year 2026 Financial Outlook

- Narrows and Raises the Midpoint of Worldwide Sales Range; Now Expects Sales To Be Between $66.8 Billion and $67.3 Billion

¹ Available in some markets as KEYTRUDA SC.

- 2 -

- Narrows and Raises Expected Non-GAAP EPS Range To Be Between $2.77 and $2.82; Outlook Now Includes One-Time Charge of $0.12 per Share Related to the Global License Agreement With SciBrunch

RAHWAY, N.J., Oct. 29, 2026 – Merck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the third quarter of 2026.

“Our science-led strategy is transforming our business,” said Robert M. Davis, chairman and chief executive officer. “The potentially practice-changing advances in oncology presented at last weekend’s ESMO meeting, including new data for our antibody-drug conjugate sac-TMT and the first Phase 3 validation of a therapeutic cancer vaccine, further clinically de-risk the substantial long-term opportunity of our late-phase pipeline. With positive momentum across multiple therapeutic areas, I’m increasingly confident in our ability to deliver long-term value for patients and shareholders.”

Financial Summary

		Third Quarter
$ in millions, except EPS amounts		2026				2025				Change				Change Ex- Exchange
Sales		$	18,085			$	17,276				5	%			4	%
GAAP net income2			5,065				5,785				-12	%			-14	%
Non-GAAP net income that excludes certain items2,3*			6,159				6,448				-4	%			-5	%
GAAP EPS			2.04				2.32				-12	%			-13	%
Non-GAAP EPS that excludes certain items3*			2.49				2.58				-3	%			-5	%

*Refer to table on page 7.

For the third quarter of 2026, Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) assuming dilution was $2.04 and non-GAAP EPS was $2.49. Both GAAP and non-GAAP EPS in the third quarter of 2026 include a one-time charge of $0.12 per share related to a global license agreement with SciBrunch Therapeutics Co., Ltd. (SciBrunch). Both GAAP and non-GAAP EPS in the third quarter of 2025 include a charge of $0.10 per share for a milestone payment to LaNova Medicines Ltd. (LaNova, acquired by Sino Biopharmaceutical Limited) associated with the technology transfer for MK-2010.

Non-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in the third quarter of 2025 also excludes tax expense relating to audit reserve adjustments.

² Net income attributable to the Company.

³ The Company is providing certain 2026 and 2025 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the Company’s results because management uses non-GAAP results to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to this release.

- 3 -

Year-to-date results can be found in the attached tables.

Third-Quarter Sales Performance

The following table reflects sales of the Company’s top products and significant performance drivers.

		Third Quarter
$ in millions		2026			2025			Change			Change Ex- Exchange				Commentary
Total Sales		$	18,085		$	17,276			5	%		4	%
Pharmaceutical			16,268			15,611			4	%		4	%		Increase primarily driven by growth in KEYTRUDA/KEYTRUDA QLEX, WINREVAIR, GARDASIL/GARDASIL 9, WELIREG, ENFLONSIA and the inclusion of OHTUVAYRE sales. Growth benefited from the timing of purchases by approximately $550 million. Growth was partially offset by declines in BRIDION, JANUVIA/JANUMET and LAGEVRIO, as well as lower alliance revenue related to Koselugo.
KEYTRUDA/ KEYTRUDA QLEX			8,601			8,147			6	%		6	%		Growth primarily driven by strong global uptake in earlier-stage indications including triple-negative breast cancer, cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Timing of wholesaler purchases unfavorably affected sales in the U.S. but was largely offset by a benefit from increased inventory in the channel. Sales of KEYTRUDA QLEX were $830 million.
GARDASIL/GARDASIL 9			1,995			1,749			14	%		14	%		Increase primarily due to higher sales in the U.S. reflecting favorable public-sector purchasing patterns and higher net pricing.
PROQUAD, M-M-R II and VARIVAX			730			684			7	%		7	%		Increase primarily due to higher demand in certain European markets.
WINREVAIR			694			360			93	%		94	%		Growth primarily reflects higher demand and favorable wholesaler and specialty pharmacy purchasing patterns in the U.S., as well as launch uptake in certain international markets, particularly in Europe and Japan.
JANUVIA/JANUMET			380			624			-39	%		-39	%		Decline primarily driven by lower demand due to generic competition following loss of market exclusivity in the U.S.
Lynparza*			352			379			-7	%		-7	%		Decline primarily due to lower net pricing in the U.S. and lower demand and pricing in China.
PREVYMIS			347			266			30	%		31	%		Increase primarily due to higher demand globally.

- 4 -

		Third Quarter
$ in millions		2026			2025			Change			Change Ex- Exchange				Commentary
WELIREG			307			196			56	%		58	%		Growth primarily driven by higher demand in the U.S. and continued launch uptake in international markets, particularly in Japan.
Lenvima*			287			258			11	%		11	%		Growth primarily due to higher demand in the U.S.
CAPVAXIVE			263			244			8	%		7	%		Increase primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, partially offset by lower sales in the U.S. reflecting lower adult pneumococcal vaccination rates and lower net pricing.
ENFLONSIA			187			79			138	%		136	%		Increase primarily driven by seasonal demand and associated inventory build in the U.S. and certain international markets.
OHTUVAYRE			184			-			-			-			Product obtained as part of the Company's October 2025 acquisition of Verona Pharma plc.
BRIDION			144			439			-67	%		-67	%		Decline primarily driven by lower demand in the U.S. due to generic competition following loss of market exclusivity.
LAGEVRIO			17			138			-88	%		-88	%		Decline largely due to lower demand in Japan.
Animal Health			1,676			1,615			4	%		3	%		Growth attributable to both Livestock and Companion Animal product portfolios.
Livestock			1,048			1,023			2	%		2	%		Growth primarily driven by higher demand for poultry products.
Companion Animal			628			592			6	%		6	%		Growth largely driven by new product launches. Sales of BRAVECTO line of products were $264 million and $262 million in the current and prior-year quarters, respectively, which represents an increase of 1%, or flat excluding impact of foreign exchange.
Other Revenues**			141			50			185	%		-25	%		Increase primarily due to favorable impact of revenue-hedging activities, partially offset by lower revenue from third-party manufacturing arrangements.

*Alliance revenue for this product represents the Company’s share of profits, which are product sales net of cost of sales and commercialization costs.

**Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities.

In addition, Koselugo alliance revenue was $13 million in the third quarter of 2026 compared with $214 million in the third quarter of 2025. The decrease was due to an amendment to the collaboration agreement with AstraZeneca in 2025, which discontinued the provisions whereby the Company shared revenue and costs with AstraZeneca, and revised the payment structure, resulting in the Company’s recognition of a $150 million upfront payment and a $50 million regulatory milestone in the third quarter of 2025.

- 5 -

Third-Quarter Expense and Related Information

The table below presents selected expense information.

$ in millions		GAAP				Acquisition- and Divestiture- Related Costs4				Restructuring Costs				(Income) Loss From Investments in Equity Securities				Non- GAAP3
Third Quarter 2026
Cost of sales		$	4,892			$	1,140			$	396			$	-			$	3,356
Selling, general and administrative			2,886				24				-				-				2,862
Research and development			4,537				3				1				-				4,533
Restructuring costs			184				-				184				-				-
Other (income) expense, net			27				-				-				(393	)			420
Third Quarter 2025
Cost of sales		$	3,855			$	621			$	110			$	-			$	3,124
Selling, general and administrative			2,633				34				-				-				2,599
Research and development			4,234				4				233				-				3,997
Restructuring costs			47				-				47				-				-
Other (income) expense, net			(238	)			-				-				(344	)			106

GAAP Expense, EPS and Related Information

Gross margin was 72.9% for the third quarter of 2026 compared with 77.7% for the third quarter of 2025. The decrease was primarily due to higher amortization of intangible assets, restructuring costs and production costs.

Selling, general and administrative (SG&A) expenses were $2.9 billion in the third quarter of 2026, an increase of 10% compared with the third quarter of 2025. The increase was primarily due to higher administrative costs, as well as higher promotional costs in support of product launches.

Research and development (R&D) expenses were $4.5 billion in the third quarter of 2026, an increase of 7% compared with the third quarter of 2025. The increase was primarily due to a $400 million charge related to a global license agreement with SciBrunch and higher clinical development spending, partially offset by lower restructuring costs and a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the third quarter of 2025 include a $300 million charge for a milestone payment to LaNova for the completion of the technology transfer for MK-2010.

Other (income) expense, net, was $27 million of expense in the third quarter of 2026 compared with $238 million of income in the third quarter of 2025. The unfavorability was primarily due to higher net interest expense.

⁴ Reflects expenses related to business combinations, including the amortization of intangible assets, intangible asset impairment charges, and expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration, transaction and certain other costs associated with acquisitions and divestitures, as well as amortization of intangible assets related to collaborations, licensing arrangements and asset acquisitions, and recognition of fair value step-up to inventories for asset acquisitions.

- 6 -

The effective income tax rate for the third quarter of 2026 was 8.9%, reflecting the favorable impacts of certain discrete items, as well as jurisdictional mix of income and expense.

GAAP EPS was $2.04 for the third quarter of 2026 compared with $2.32 for the third quarter of 2025. The decrease was primarily driven by higher operating expenses, reflecting increased investments to advance the R&D pipeline and support product launches, higher amortization of intangible assets, higher net interest expense and increased restructuring costs, partially offset by operational strength in the business and a lower effective income tax rate.

Non-GAAP Expense, EPS and Related Information

Non-GAAP gross margin was 81.4% for the third quarter of 2026 compared with 81.9% for the third quarter of 2025. The decrease was primarily due to higher production costs.

Non-GAAP SG&A expenses were $2.9 billion in the third quarter of 2026, an increase of 10% compared with the third quarter of 2025. The increase was primarily due to higher administrative costs, as well as higher promotional costs in support of product launches.

Non-GAAP R&D expenses were $4.5 billion in the third quarter of 2026, an increase of 13% compared with the third quarter of 2025. The increase was primarily due to a $400 million charge related to a global license agreement with SciBrunch and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone. R&D expenses in the third quarter of 2025 include a $300 million charge for a milestone payment to LaNova for the completion of the technology transfer for MK-2010.

Non-GAAP other (income) expense, net, was $420 million of expense in the third quarter of 2026 compared with $106 million of expense in the third quarter of 2025. The unfavorability was primarily due to higher net interest expense.

The non-GAAP effective income tax rate for the third quarter of 2026 was 10.9%, reflecting the favorable impacts of certain discrete items, as well as jurisdictional mix of income and expense.

Non-GAAP EPS was $2.49 for the third quarter of 2026 compared with $2.58 for the third quarter of 2025. The decrease was primarily driven by higher operating expenses, reflecting increased investments to advance the R&D pipeline and support product launches, and higher net interest expense, partially offset by operational strength in the business and a lower effective income tax rate.

- 7 -

A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.

		Third Quarter
$ in millions, except EPS amounts		2026				2025
EPS
GAAP EPS		$	2.04			$	2.32
Difference			0.45				0.26
Non-GAAP EPS that excludes items listed below3		$	2.49			$	2.58
Net Income
GAAP net income2		$	5,065			$	5,785
Difference			1,094				663
Non-GAAP net income that excludes items listed below2,3		$	6,159			$	6,448
Excluded Items:
Acquisition- and divestiture-related costs4		$	1,167			$	659
Restructuring costs			581				390
Income from investments in equity securities			(393	)			(344	)
Decrease to net income before taxes			1,355				705
Estimated income tax (benefit) expense5			(261	)			(42	)
Decrease to net income		$	1,094			$	663

Pipeline and Portfolio Highlights

In the third quarter, the Company achieved key regulatory and clinical milestones to meaningfully advance its broad and diverse pipeline.

· Oncology:

o U.S. Food and Drug Administration (U.S. FDA) approved WELIREG plus Lenvima, in collaboration with Eisai, for certain previously treated adult patients with advanced renal cell carcinoma with a clear cell component (ccRCC), based on Phase 3 LITESPARK-011 trial.

§ Approval represents first approved combination of an oral hypoxia-inducible factor-2 alpha inhibitor and a multi-targeted vascular endothelial growth factor tyrosine kinase inhibitor (TKI) for these patients.

o In October, U.S. FDA accepted a Biologics License Application (BLA) seeking approval of sac-TMT for the treatment of adult patients with endometrial cancer who have previously received platinum containing chemotherapy and a programmed death receptor 1 or programmed death ligand 1 inhibitor, separately or in combination, based on Phase 3 TroFuse-005 trial.

§ U.S. FDA set Prescription Drug User Fee Act (PDUFA) date of June 15, 2027. The Company is in discussions with the U.S. FDA and is hopeful for an earlier approval.

o In October, European Commission (EC) approved KEYTRUDA plus Padcev as perioperative treatment for adults with resectable muscle-invasive bladder cancer (MIBC), based on Phase 3 KEYNOTE-B15 trial.

⁵ Includes the estimated income tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments for all periods presented. Amount in the third quarter of 2025 also includes $86 million of tax expense relating to audit reserve adjustments.

- 8 -

o Ministry of Health, Labor and Welfare in Japan approved subcutaneous pembrolizumab and berahyaluronidase alfa injection under the trademark KEYJECT (marketed as KEYTRUDA QLEX in the U.S.) for all KEYTRUDA indications approved in Japan, based on Phase 3 MK-3475A-D77 trial.

o At the European Society for Medical Oncology (ESMO) Congress 2026 in October, positive new data were presented during three late-breaking Presidential Symposia across three Phase 3 trials from the Company’s robust oncology pipeline and portfolio, including:

§ Results from Phase 3 TroFuse-005 trial evaluating sac-TMT for patients with advanced or recurrent endometrial cancer previously treated with chemotherapy and anti-PD-1/L1 immunotherapy.

§ Results from Phase 3 INTerpath-001 trial, in collaboration with Moderna, Inc. (Moderna), evaluating adjuvant treatment with intismeran autogene (intismeran; V940 or mRNA-4157) in combination with KEYTRUDA.

§ Results from Phase 3 KEYNOTE-C93 trial evaluating KEYTRUDA monotherapy versus platinum doublet chemotherapy as a first-line treatment for certain patients with mismatch repair deficient (dMMR) advanced or recurrent endometrial cancer who had not previously received systemic chemotherapy or who experienced recurrence more than six months after completing prior adjuvant therapy.

§ In addition, data were presented from Phase 3 OptiTROP studies in China, led by Kelun-Biotech, evaluating sac-TMT in non-small cell lung cancer (NSCLC), including:

· Results from the OptiTROP-Lung06 study as first-line treatment for PD-L1-negative advanced non-squamous NSCLC.

· Final overall survival data from the OptiTROP-Lung04 study in epidermal growth factor receptor (EGFR)-mutated NSCLC following progression on EGFR TKIs.

o Ifinatamab deruxtecan (I-DXd) Biologics License Application (BLA), in collaboration with Daiichi Sankyo, for certain patients with previously treated extensive-stage small cell lung cancer (ES-SCLC) was voluntarily withdrawn.

· Vaccines and Infectious Diseases:

o U.S. FDA accepted a supplemental BLA (sBLA) for ENFLONSIA to expand its indication to include prevention of respiratory syncytial virus (RSV) lower respiratory tract disease (LRTD) in children under 2 years of age at increased risk for severe RSV disease through their second RSV season, based on Phase 3 SMART trial.

§ U.S. FDA set PDUFA date of March 22, 2027.

§ Applications to expand marketing authorization for ENFLONSIA for same population in Europe and Japan, based on Phase 3 SMART trial, have also been accepted.

- 9 -

o U.S. FDA accepted a supplemental New Drug Application (sNDA) for IDVYNSO for the treatment of certain adults with HIV-1 infection who had not previously received antiretroviral treatment, based on Phase 3 P053 trial. U.S. FDA also accepted an sNDA to include 96-week data for IDVYNSO in certain virologically suppressed adults, based on the Phase 3 P051 and P052 trials.

§ U.S. FDA set a PDUFA date for both sNDAs of April 22, 2027.

· Cardiometabolic, Respiratory and Specialty:

o U.S. FDA approved an update to U.S. product label for WINREVAIR to include efficacy and safety data from the Phase 3 HYPERION trial evaluating adults recently diagnosed with pulmonary arterial hypertension (PAH, World Health Organization [WHO] Group 1 pulmonary hypertension).

§ In HYPERION, in patients diagnosed with PAH in the last 12 months, adding WINREVAIR on top of background therapy reduced the risk of clinical worsening events compared to placebo.

· Immunology:

o Presented results from Phase 2b study of tulisokibart in adults with moderate to severe hidradenitis suppurativa (HS).

· Ophthalmology:

o At the American Academy of Ophthalmology (AAO) 2026 Annual Meeting in October, presented for the first time one-year results from Phase 2b/3 BRUNELLO trial evaluating remigromig, an investigational, tetravalent, tri-specific antibody designed to agonize the Wingless-related integration site (Wnt) pathway, in adults with diabetic macular edema (DME).

· Business Development:

o Announced an exclusive global license agreement with SciBrunch for MK-2690 (SPR2015), an investigational preclinical oral KRAS G12D (ON) inhibitor.

Notable recent news releases on the Company’s pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company’s website to read the releases.*

Oncology	Sac-TMT Reduced Risk of Death by 32% and Risk of Disease Progression or Death by 41% Compared to Chemotherapy in Certain Patients With Advanced or Recurrent Endometrial Cancer; Results From Phase 3 TroFuse-005 Trial
	The Company and Moderna Presented Results From Landmark Phase 3 INTerpath-001 Trial for Intismeran Plus KEYTRUDA at ESMO 2026 Presidential Symposium; Intismeran Plus KEYTRUDA Significantly Reduced Risk of Recurrence or Death by 42% (HR=0.58 [95% CI, 0.45–0.75]; Two-Sided p<0.001) Compared to KEYTRUDA Alone for Patients With Completely Resected Stage IIB-IV Melanoma
	KEYTRUDA as Monotherapy Reduced Risk of Disease Progression or Death by 43% for Certain Patients With Advanced or Recurrent Endometrial Cancer With dMMR Tumors Compared to Chemotherapy; Results From Phase 3 KEYNOTE-C93 Trial
	U.S. FDA Approved WELIREG Plus Lenvima for Certain Previously Treated Adult Patients With ccRCC; Based on Results From Phase 3 LITESPARK-011 Trial, Presented at ESMO

- 10 -

	KEYTRUDA QLEX Approved in Japan for Subcutaneous Administration for All KEYTRUDA Indications Approved in Japan; Based on Results From Phase 3 MK-3475A-D77 Trial
	EC Approved KEYTRUDA Plus Padcev as Perioperative Treatment for Adults With Resectable MIBC; Based on Results From Phase 3 KEYNOTE-B15 Trial
	I-DXd BLA for Certain Patients With ES-SCLC Voluntarily Withdrawn
	The Company Entered Into Exclusive Global License Agreement With SciBrunch for SPR2015, an Investigational Oral KRAS G12D (ON) Inhibitor
Vaccines and Infectious Diseases	U.S. FDA Accepted sBLA for ENFLONSIA to Update Its RSV LRTD Indication to Include Children Under 2 Years at Increased Risk for Severe RSV for Their Second Season; Based on Results From Phase 3 SMART Trial; FDA Set PDUFA Date of March 22, 2027
Cardiometabolic, Respiratory and Specialty	U.S. FDA Approved Update to the Label for WINREVAIR to Include Data From the Phase 3 HYPERION Trial Evaluating Adults Recently Diagnosed With PAH (PAH, WHO Group 1 Pulmonary Hypertension)
Immunology	Tulisokibart Met Primary and Key Secondary Endpoints in Phase 2b Study in Patients With Moderate to Severe HS
Ophthalmology	The Company Presented One-Year Results From Pivotal Phase 2b/3 BRUNELLO Study Evaluating Remigromig, a Tri-Specific Agonist of the Wnt Pathway, in Adults With DME, at AAO 2026

*References in the above news release titles have been modified for the purpose of this announcement.

Sustainability Highlights

The Company’s 2025/2026 Purpose for Progress Impact Report provided a comprehensive view of the Company’s measurable progress across its sustainability priorities, including achieving all goals targeted for completion by 2025. The Company also introduced new targets for 2030, including a goal to reach 100 million people with access solutions that close gaps in care by 2030.

Full-Year 2026 Financial Outlook

The following table summarizes the Company’s full-year financial outlook.

		Full Year 2026
		Updated		Prior
Sales*		$66.8 billion to $67.3 billion		$66.3 billion to $67.3 billion
Non-GAAP Gross margin3		Approximately 81%		Approximately 81%
Non-GAAP Operating expenses3**		$42.4 billion to $42.9 billion		$42.0 billion to $42.7 billion
Non-GAAP Other (income) expense, net3		Approximately $1.4 billion expense		Approximately $1.4 billion expense
Non-GAAP Effective income tax rate3		32.0% to 33.0%		35.0% to 36.0%
Non-GAAP EPS3***		$2.77 to $2.82		$2.66 to $2.76
Share count (assuming dilution)		Approximately 2.48 billion		Approximately 2.48 billion

*The Company does not have any non-GAAP adjustments to sales.

**Includes one-time R&D charges of $9.0 billion for the acquisition of Cidara Therapeutics, Inc. (Cidara), $5.7 billion for the acquisition of Terns Pharmaceuticals, Inc. (Terns), and $400 million related to the global license agreement with SciBrunch. Outlook does not assume any additional significant potential business development transactions.

***Includes one-time charges of $3.62 per share for the acquisition of Cidara, $2.31 per share for the acquisition of Terns, and $0.12 per share related to the global license agreement with SciBrunch.

The Company has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective income tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the Company’s future GAAP results.

- 11 -

The Company now anticipates full-year 2026 sales to be between $66.8 billion and $67.3 billion, including a positive impact from foreign exchange of approximately 1% at mid-October 2026 exchange rates.

The Company now expects the full-year non-GAAP effective income tax rate to be between 32.0% and 33.0%, including the impact of the non-tax-deductible one-time charges for the acquisitions of Cidara and Terns.

The Company now expects full-year 2026 non-GAAP EPS to be between $2.77 and $2.82, including a positive impact from foreign exchange of approximately $0.15 per share at mid-October 2026 exchange rates. This range includes one-time charges of $9.0 billion, or $3.62 per share, related to the acquisition of Cidara; $5.7 billion, or $2.31 per share, related to the acquisition of Terns; and $400 million, or $0.12 per share, related to the global license agreement with SciBrunch. The charge related to SciBrunch was not previously included in the outlook. In 2025, non-GAAP EPS of $8.98 was negatively impacted by one-time charges of $0.20 per share in the aggregate related to certain business development transactions.

Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions.

Earnings Conference Call

Investors, journalists and the general public may access a live audio webcast of the call on Thursday, Oct. 29, at 9 a.m. EDT via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures and slides highlighting the results, will be available on the Company’s website.

All participants may join the call by dialing (800) 369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590.

About Our Company

At Merck & Co., Inc., Rahway, N.J., USA, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities.

- 12 -

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA

This news release 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 statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the Company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the Company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

Appendix

Generic product names are provided below.

Pharmaceutical
BRIDION (sugammadex)
CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine)

ENFLONSIA (clesrovimab-cfor)

GARDASIL (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant)
GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant)

IDVYNSO (doravirine/islatravir)

JANUMET (sitagliptin and metformin HCl)
JANUVIA (sitagliptin)
KEYTRUDA (pembrolizumab)
KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph)

- 13 -

LAGEVRIO (molnupiravir)
Lenvima (lenvatinib)
Lynparza (olaparib)
M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live)
OHTUVAYRE (ensifentrine) 

PREVYMIS (letermovir)
PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live)

VARIVAX (Varicella Virus Vaccine Live)

WELIREG (belzutifan)
WINREVAIR (sotatercept-csrk)

Animal Health
BRAVECTO (fluralaner)

###

Media Contacts:	Investor Contacts:
Michael Levey michael.levey@msd.com John Cummins john.cummins2@msd.com	Peter Dannenbaum (732) 594-1579 Steven Graziano (732) 594-1583

MERCK & CO., INC., RAHWAY, N.J., USA

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1

		GAAP										GAAP
			3Q26			3Q25			% Change				Sep YTD 2026			Sep YTD 2025			% Change
Sales		$	18,085		$	17,276			5	%		$	50,978		$	48,611			5	%
Costs, Expenses and Other
Cost of sales			4,892			3,855			27	%			13,482			10,831			24	%
Selling, general and administrative			2,886			2,633			10	%			8,491			7,835			8	%
Research and development			4,537			4,234			7	%			26,871			11,903			*
Restructuring costs			184			47			*				530			676			-22	%
Other (income) expense, net			27			(238	)		*				262			(281	)		*
Income Before Taxes			5,559			6,745			-18	%			1,342			17,647			-92	%
Income Tax Provision			492			958							1,855			2,346
Net Income (Loss)			5,067			5,787			-12	%			(513	)		15,301			*
Less: Net Income (Loss) Attributable to Noncontrolling Interests			2			2							(3	)		10
Net Income (Loss) Attributable to Merck & Co., Inc., Rahway, N.J., USA		$	5,065		$	5,785			-12	%		$	(510	)	$	15,291			*
Earnings (Loss) per Common Share Assuming Dilution (1)		$	2.04		$	2.32			-12	%		$	(0.21	)	$	6.08			*
Average Shares Outstanding Assuming Dilution (1)			2,478			2,498							2,471			2,514
Effective Income Tax Rate			8.9	%		14.2	%						138.2	%		13.3	%

* 100% or greater

⁽¹⁾ Because the Company recorded a net loss in the first nine months of 2026, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive.

MERCK & CO., INC., RAHWAY, N.J., USA

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 GAAP TO NON-GAAP RECONCILIATION

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2a

		GAAP				Acquisition- and Divestiture-Related Costs(1)			Restructuring Costs(2)			(Income) Loss from Investments in Equity Securities			Adjustment Subtotal		Non-GAAP
Third Quarter
Cost of sales		$	4,892			1,140			396						1,536		$	3,356
Selling, general and administrative			2,886			24									24			2,862
Research and development			4,537			3			1						4			4,533
Restructuring costs			184						184						184			–
Other (income) expense, net			27									(393	)		(393	)		420
Income Before Taxes			5,559			(1,167	)		(581	)		393			(1,355	)		6,914
Income Tax Provision (Benefit)			492			(239	)(3)		(105	)(3)		83	(3)		(261	)		753
Net Income			5,067			(928	)		(476	)		310			(1,094	)		6,161
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA			5,065			(928	)		(476	)		310			(1,094	)		6,159
Earnings per Common Share Assuming Dilution		$	2.04			(0.38	)		(0.19	)		0.12			(0.45	)	$	2.49
Effective Income Tax Rate			8.9	%														10.9	%
September YTD
Cost of sales		$	13,482			3,221			817						4,038		$	9,444
Selling, general and administrative			8,491			73									73			8,418
Research and development			26,871			9			34						43			26,828
Restructuring costs			530						530						530			–
Other (income) expense, net			262									(764	)		(764	)		1,026
Income Before Taxes			1,342			(3,303	)		(1,381	)		764			(3,920	)		5,262
Income Tax Provision (Benefit)			1,855			(660	)(3)		(240	)(3)		163	(3)		(737	)		2,592
Net (Loss) Income			(513	)		(2,643	)		(1,141	)		601			(3,183	)		2,670
Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA			(510	)		(2,643	)		(1,141	)		601			(3,183	)		2,673
(Loss) Earnings per Common Share Assuming Dilution (4)		$	(0.21	)		(1.07	)		(0.46	)		0.24			(1.29	)	$	1.08
Effective Income Tax Rate			138.2	%														49.3	%

Only the line items that are affected by non-GAAP adjustments are shown.

The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.  

⁽¹⁾ Amounts included in cost of sales reflect expenses for the amortization of intangible assets, as well as the recognition of fair value step-up of inventories related to the 2025 Verona Pharma plc acquisition. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. 

⁽²⁾ Amounts primarily include employee separation costs, accelerated depreciation and asset impairment charges associated with facilities to be closed or divested, as well as contractual termination costs, related to activities under the Company's formal restructuring programs.

⁽³⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. 

⁽⁴⁾ Because the Company recorded a net loss in the first nine months of 2026, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive.  

MERCK & CO., INC., RAHWAY, N.J., USA

FRANCHISE / KEY PRODUCT SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3

		2026												2025																	3Q				Sep YTD
		1Q			2Q			3Q			Sep YTD			1Q			2Q			3Q			Sep YTD			4Q			Full Year		Nom %		Ex-Exch %		Nom %		Ex-Exch %
TOTAL SALES (1)	$	16,286		$	16,607		$	18,085		$	50,978		$	15,529		$	15,806		$	17,276		$	48,611		$	16,400		$	65,011		5		4		5		4
PHARMACEUTICAL		14,349			14,760			16,268			45,377			13,638			14,050			15,611			43,299			14,843			58,142		4		4		5		4
Oncology
Keytruda		7,906			7,904			7,771			23,581			7,205			7,956			8,142			23,303			8,337			31,641		-5		-4		1		0
Keytruda Qlex		128			463			830			1,420									5			5			35			40		*		*		*		*
Alliance Revenue – Lynparza (2)		341			365			352			1,059			312			370			379			1,061			389			1,450		-7		-7		0		-2
Alliance Revenue – Lenvima (2)		256			283			287			826			258			265			258			781			272			1,053		11		11		6		5
Welireg		199			271			307			776			137			162			196			496			220			716		56		58		57		57
Alliance Revenue – Reblozyl (3)		148			122			177			448			119			107			136			361			164			525		31		31		24		24
Vaccines & Infectious Diseases
Gardasil/Gardasil 9		1,069			1,169			1,995			4,232			1,327			1,126			1,749			4,202			1,031			5,233		14		14		1		0
ProQuad/M-M-R II/Varivax		538			592			730			1,860			539			609			684			1,832			619			2,451		7		7		2		1
Bridion		472			497			144			1,113			441			461			439			1,341			499			1,841		-67		-67		-17		-17
Prevymis		272			295			347			915			208			228			266			702			275			978		30		31		30		29
Capvaxive		142			184			263			588			107			129			244			480			279			759		8		7		22		22
Vaxneuvance		202			148			195			545			230			229			226			685			140			825		-14		-13		-20		-22
RotaTeq		206			134			196			536			228			121			204			554			119			673		-4		-4		-3		-4
Zerbaxa		82			77			90			249			70			74			81			225			87			312		11		11		11		9
Delstrigo		75			101			67			243			67			83			77			228			79			306		-13		-12		7		3
Enflonsia		1			2			187			190									79			79			21			100		138		136		142		140
Isentress/Isentress HD		59			60			52			171			90			86			82			258			67			325		-36		-36		-34		-34
Dificid		34			22			14			70			83			96			43			222			25			247		-68		-68		-68		-68
Lagevrio		28			5			17			49			102			83			138			323			57			380		-88		-88		-85		-85
Cardiometabolic, Respiratory, & Specialty
Winrevair		525			588			694			1,808			280			336			360			976			467			1,443		93		94		85		85
Januvia		367			258			186			811			549			372			382			1,302			302			1,604		-51		-50		-38		-37
Janumet		207			171			194			572			247			251			243			741			199			940		-20		-20		-23		-24
Ohtuvayre		131			204			184			519															178			178		-		-		-		-
Alliance Revenue - Adempas/Verquvo (4)		109			126			118			353			106			123			112			340			129			470		5		5		4		4
Adempas (5)		78			78			78			234			68			80			82			229			83			312		-5		-3		2		-1
Other Pharmaceutical (6)		774			641			793			2,209			865			703			1,004			2,573			770			3,340		-21		-21		-14		-15
ANIMAL HEALTH		1,791			1,775			1,676			5,243			1,588			1,646			1,615			4,849			1,505			6,354		4		3		8		5
Livestock		1,064			1,041			1,048			3,154			924			961			1,023			2,909			987			3,896		2		2		8		5
Companion Animal		727			734			628			2,089			664			685			592			1,940			518			2,458		6		6		8		5
Other Revenues (7)		146			72			141			358			303			110			50			463			52			515		185		-25		-23		-8

*200% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁵⁾ Net product sales in the Company's marketing territories.

⁽⁶⁾ Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $161 million, $10 million and $13 million in the first, second and third quarter of 2026, respectively, and $44 million, $43 million and $214 million in the first, second and third quarter of 2025, respectively.

⁽⁷⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $132 million, $0 million and $2 million in the first, second and third quarter of 2026, respectively, and $95 million, $5 million and $11 million in the first, second and third quarter of 2025, respectively. 

Exhibit 99.2

MERCK & CO., INC., RAHWAY, N.J., USA

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2026												2025																			% Change
		1Q			2Q			3Q			Sep YTD			1Q			2Q			3Q			Sep YTD			4Q			Full Year			3Q			Sep YTD
Sales	$	16,286		$	16,607		$	18,085		$	50,978		$	15,529		$	15,806		$	17,276		$	48,611		$	16,400		$	65,011			5	%		5	%
Costs, Expenses and Other
Cost of sales		4,195			4,395			4,892			13,482			3,419			3,557			3,855			10,831			5,551			16,382			27	%		24	%
Selling, general and administrative		2,700			2,904			2,886			8,491			2,552			2,649			2,633			7,835			2,898			10,733			10	%		8	%
Research and development		12,592			9,741			4,537			26,871			3,621			4,048			4,234			11,903			3,886			15,789			7	%		*
Restructuring costs		195			151			184			530			69			560			47			676			213			889			*			-22	%
Other (income) expense, net		138			99			27			262			(35	)		(7	)		(238	)		(281	)		432			151			*			*
(Loss) Income Before Taxes		(3,534	)		(683	)		5,559			1,342			5,903			4,999			6,745			17,647			3,420			21,067			-18	%		-92	%
Income Tax Provision		709			654			492			1,855			818			571			958			2,346			458			2,804
Net (Loss) Income		(4,243	)		(1,337	)		5,067			(513	)		5,085			4,428			5,787			15,301			2,962			18,263			-12	%		*
Less: Net (Loss) Income Attributable to Noncontrolling Interests		(3	)		(2	)		2			(3	)		6			1			2			10			(1	)		9
Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA	$	(4,240	)	$	(1,335	)	$	5,065		$	(510	)	$	5,079		$	4,427		$	5,785		$	15,291		$	2,963		$	18,254			-12	%		*
(Loss) Earnings per Common Share Assuming Dilution (1)	$	(1.72	)	$	(0.54	)	$	2.04		$	(0.21	)	$	2.01		$	1.76		$	2.32		$	6.08		$	1.19		$	7.28			-12	%		*
Average Shares Outstanding Assuming Dilution (1)		2,472			2,470			2,478			2,471			2,531			2,513			2,498			2,514			2,488			2,507
Effective Income Tax Rate		-20.1	%		-95.9	%		8.9	%		138.2	%		13.9	%		11.4	%		14.2	%		13.3	%		13.4	%		13.3	%

* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.  

⁽¹⁾ Because the Company recorded a net loss in the first and second quarters of 2026, as well as the first nine months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive.  

MERCK & CO., INC., RAHWAY, N.J., USA

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 GAAP TO NON-GAAP RECONCILIATION 

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

		GAAP			Acquisition- and Divestiture-Related Costs (1)			Restructuring Costs (2)			(Income) Loss from Investments in Equity Securities			Certain Other Items			Adjustment Subtotal			Non-GAAP
Third Quarter
Cost of sales		$	3,855			621			110									731		$	3,124
Selling, general and administrative			2,633			34												34			2,599
Research and development			4,234			4			233									237			3,997
Restructuring costs			47						47									47			–
Other (income) expense, net			(238	)								(344	)					(344	)		106
Income Before Taxes			6,745			(659	)		(390	)		344						(705	)		7,450
Income Tax Provision (Benefit)			958			(119	)(3)		(82	)(3)		73	(3)		86	(4)		(42	)		1,000
Net Income			5,787			(540	)		(308	)		271			(86	)		(663	)		6,450
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA			5,785			(540	)		(308	)		271			(86	)		(663	)		6,448
Earnings per Common Share Assuming Dilution		$	2.32			(0.22	)		(0.12	)		0.11			(0.03	)		(0.26	)	$	2.58
Effective Income Tax Rate			14.2	%																	13.4	%
September YTD
Cost of sales		$	10,831			1,817			311									2,128		$	8,703
Selling, general and administrative			7,835			72			1									73			7,762
Research and development			11,903			14			286									300			11,603
Restructuring costs			676						676									676			–
Other (income) expense, net			(281	)		(3	)					(512	)					(515	)		234
Income Before Taxes			17,647			(1,900	)		(1,274	)		512						(2,662	)		20,309
Income Tax Provision (Benefit)			2,346			(338	)(3)		(239	)(3)		109	(3)		(60	)(4)		(528	)		2,874
Net Income			15,301			(1,562	)		(1,035	)		403			60			(2,134	)		17,435
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA			15,291			(1,562	)		(1,035	)		403			60			(2,134	)		17,425
Earnings per Common Share Assuming Dilution		$	6.08			(0.62	)		(0.41	)		0.16			0.02			(0.85	)	$	6.93
Effective Income Tax Rate			13.3	%																	14.2	%

Only the line items that are affected by non-GAAP adjustments are shown.

The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. 

⁽¹⁾ Amounts included in cost of sales for the third quarter reflect expenses for the amortization of intangible assets. Amounts included in cost of sales for the nine-month period include the amortization of intangible assets and intangible asset impairment charges, partially offset by a decrease in the estimated fair value measurement of liabilities for contingent consideration. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses reflect the amortization of intangible assets. 

⁽²⁾ Amounts primarily include employee separation costs, accelerated depreciation and asset impairment charges associated with facilities to be closed or divested, as well as contractual termination costs, related to activities under the Company's formal restructuring programs.

⁽³⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. 

⁽⁴⁾ Amount in the third quarter represents tax expense relating to audit reserve adjustments. Amount in the nine-month period represents a tax benefit, including a net benefit related to favorable audit reserve adjustments.

MERCK & CO., INC., RAHWAY, N.J., USA

FRANCHISE / KEY PRODUCT SALES

THIRD QUARTER 2026

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3a

		Global									U.S.									International
		3Q 2026			3Q 2025			% Change			3Q 2026			3Q 2025			% Change			3Q 2026			3Q 2025			% Change
TOTAL SALES (1)		$	18,085		$	17,276			5		$	10,615		$	10,012			6		$	7,471		$	7,264			3
PHARMACEUTICAL			16,268			15,611			4			10,119			9,493			7			6,149			6,118			1
Oncology
Keytruda			7,771			8,142			-5			4,520			4,879			-7			3,251			3,263			0
Keytruda Qlex			830			5			*			693			5			*			136						-
Alliance Revenue – Lynparza (2)			352			379			-7			171			184			-7			182			195			-7
Welireg			307			196			56			237			161			47			69			35			96
Alliance Revenue – Lenvima (2)			287			258			11			204			177			15			83			81			3
Alliance Revenue – Reblozyl (3)			177			136			31			145			111			31			33			25			31
Vaccines & Infectious Diseases
Gardasil/Gardasil 9			1,995			1,749			14			1,366			1,154			18			629			595			6
ProQuad/M-M-R II/Varivax			730			684			7			561			554			1			169			130			30
Prevymis			347			266			30			189			128			48			158			138			14
Capvaxive			263			244			8			207			238			-13			55			7			*
RotaTeq			196			204			-4			150			141			6			46			63			-28
Vaxneuvance			195			226			-14			111			134			-18			85			91			-7
Enflonsia			187			79			138			141			78			80			45						-
Bridion			144			439			-67			108			392			-72			36			47			-24
Zerbaxa			90			81			11			56			49			15			34			32			6
Delstrigo			67			77			-13			13			13			-3			54			64			-15
Isentress/Isentress HD			52			82			-36			31			44			-31			21			37			-43
Lagevrio			17			138			-88			7			24			-71			10			114			-91
Dificid			14			43			-68			7			30			-78			7			13			-44
Cardiometabolic, Respiratory, & Specialty
Winrevair			694			360			93			610			335			82			84			25			*
Janumet			194			243			-20			61			78			-22			133			165			-19
Januvia			186			382			-51			78			258			-70			108			124			-12
Ohtuvayre			184						-			184						-
Alliance Revenue - Adempas/Verquvo (4)			118			112			5			108			103			4			10			8			20
Adempas (5)			78			82			-5												78			82			-5
Other Pharmaceutical (6)			793			1,004			-21			161			223			-28			633			784			-19
ANIMAL HEALTH			1,676			1,615			4			493			504			-2			1,184			1,112			6
Livestock			1,048			1,023			2			199			213			-7			850			811			5
Companion Animal			628			592			6			294			291			1			334			301			11
Other Revenues (7)			141			50			185			3			15			-80			138			34			*

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown. 

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁵⁾ Net product sales in the Company's marketing territories. 

⁽⁶⁾ Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $13 million and $214 million on a global basis in the third quarter of 2026 and 2025, respectively.

⁽⁷⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $2 million and $11 million on a global basis in the third quarter of 2026 and 2025, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

FRANCHISE / KEY PRODUCT SALES

SEPTEMBER YEAR-TO-DATE 2026

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

		Global									U.S.									International
		Sep YTD 2026			Sep YTD 2025			% Change			Sep YTD 2026			Sep YTD 2025			% Change			Sep YTD 2026			Sep YTD 2025			% Change
TOTAL SALES (1)		$	50,978		$	48,611			5		$	29,146		$	27,371			6		$	21,832		$	21,240			3
PHARMACEUTICAL			45,377			43,299			5			27,457			25,747			7			17,920			17,552			2
Oncology
Keytruda			23,581			23,303			1			13,731			13,936			-1			9,851			9,367			5
Keytruda Qlex			1,420			5			*			1,195			5			*			225						-
Alliance Revenue – Lynparza (2)			1,059			1,061			0			486			503			-3			573			558			3
Alliance Revenue – Lenvima (2)			826			781			6			573			545			5			253			236			7
Welireg			776			496			57			603			422			43			173			74			133
Alliance Revenue – Reblozyl (3)			448			361			24			370			299			24			78			62			25
Vaccines & Infectious Diseases
Gardasil/Gardasil 9			4,232			4,202			1			2,392			2,235			7			1,840			1,967			-6
ProQuad/M-M-R II/Varivax			1,860			1,832			2			1,409			1,457			-3			452			374			21
Bridion			1,113			1,341			-17			995			1,181			-16			118			161			-26
Prevymis			915			702			30			472			345			37			443			357			24
Capvaxive			588			480			22			464			473			-2			124			8			*
Vaxneuvance			545			685			-20			303			409			-26			243			276			-12
RotaTeq			536			554			-3			399			366			9			137			187			-27
Zerbaxa			249			225			11			151			136			11			98			89			10
Delstrigo			243			228			7			36			42			-15			208			185			12
Enflonsia			190			79			142			140			78			79			50						-
Isentress/Isentress HD			171			258			-34			101			144			-29			70			114			-39
Dificid			70			222			-68			42			185			-78			29			37			-22
Lagevrio			49			323			-85			25			90			-73			25			233			-89
Cardiometabolic, Respiratory, & Specialty
Winrevair			1,808			976			85			1,609			926			74			198			49			*
Januvia			811			1,302			-38			479			819			-42			333			483			-31
Janumet			572			741			-23			156			210			-26			416			530			-22
Ohtuvayre			519						-			518						-
Alliance Revenue - Adempas/Verquvo (4)			353			340			4			329			308			7			24			32			-24
Adempas (5)			234			229			2												234			229			2
Other Pharmaceutical (6)			2,209			2,573			-14			479			633			-24			1,725			1,944			-11
ANIMAL HEALTH			5,243			4,849			8			1,547			1,505			3			3,696			3,345			10
Livestock			3,154			2,909			8			613			598			3			2,541			2,312			10
Companion Animal			2,089			1,940			8			934			907			3			1,155			1,033			12
Other Revenues (7)			358			463			-23			142			119			19			216			343			-37

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown. 

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁵⁾ Net product sales in the Company's marketing territories. 

⁽⁶⁾ Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $183 million and $301 million on a global basis for September YTD 2026 and 2025, respectively.

⁽⁷⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $133 million and $111 million on a global basis for September YTD 2026 and 2025, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

PHARMACEUTICAL GEOGRAPHIC SALES 

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3c

	2026												2025																		% Change
	1Q			2Q			3Q			Sep YTD			1Q			2Q			3Q			Sep YTD			4Q			Full Year			3Q		Sep YTD
TOTAL PHARMACEUTICAL	$	14,349		$	14,760		$	16,268		$	45,377		$	13,638		$	14,050		$	15,611		$	43,299		$	14,843		$	58,142		4		5
United States		8,512			8,827			10,119			27,457			7,927			8,328			9,493			25,747			8,662			34,409		7		7
% Pharmaceutical Sales		59.3	%		59.8	%		62.2	%		60.5	%		58.1	%		59.3	%		60.8	%		59.5	%		58.4	%		59.2	%
Europe (1)		2,725			2,801			2,837			8,363			2,384			2,551			2,675			7,610			2,839			10,449		6		10
% Pharmaceutical Sales		19.0	%		19.0	%		17.4	%		18.4	%		17.5	%		18.2	%		17.1	%		17.6	%		19.1	%		18.0	%
Latin America		624			636			730			1,990			589			654			691			1,933			644			2,578		6		3
% Pharmaceutical Sales		4.3	%		4.3	%		4.5	%		4.4	%		4.3	%		4.7	%		4.4	%		4.5	%		4.3	%		4.4	%
Asia Pacific (other than China and Japan)		569			636			596			1,800			535			609			593			1,736			586			2,323		1		4
% Pharmaceutical Sales		4.0	%		4.3	%		3.7	%		4.0	%		3.9	%		4.3	%		3.8	%		4.0	%		4.0	%		4.0	%
Japan		535			558			569			1,662			651			604			693			1,948			684			2,632		-18		-15
% Pharmaceutical Sales		3.7	%		3.8	%		3.5	%		3.7	%		4.8	%		4.3	%		4.4	%		4.5	%		4.6	%		4.5	%
Eastern Europe/Middle East/Africa		413			408			399			1,220			435			451			365			1,250			348			1,598		10		-2
% Pharmaceutical Sales		2.9	%		2.8	%		2.5	%		2.7	%		3.2	%		3.2	%		2.3	%		2.9	%		2.3	%		2.7	%
China		353			368			429			1,151			668			407			377			1,452			364			1,816		14		-21
% Pharmaceutical Sales		2.5	%		2.5	%		2.6	%		2.5	%		4.9	%		2.9	%		2.4	%		3.4	%		2.5	%		3.1	%
Canada		137			154			152			443			125			135			134			394			153			547		13		12
% Pharmaceutical Sales		1.0	%		1.0	%		0.9	%		1.0	%		0.9	%		1.0	%		0.9	%		0.9	%		1.0	%		0.9	%
Other		481			372			437			1,291			324			311			590			1,229			563			1,790		-26		5
% Pharmaceutical Sales		3.3	%		2.5	%		2.7	%		2.8	%		2.4	%		2.1	%		3.9	%		2.7	%		3.8	%		3.2	%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾ Europe represents all European Union countries, the European Union accession markets and the United Kingdom.

MERCK & CO., INC., RAHWAY, N.J., USA

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

			3Q26				3Q25				Sep YTD 2026				Sep YTD 2025
Interest income		$	(52	)		$	(96	)		$	(122	)		$	(274	)
Interest expense			546				327				1,550				946
Exchange losses			63				56				138				224
Income from investments in equity securities, net (1)			(401	)			(373	)			(811	)			(563	)
Net periodic defined benefit plan (credit) cost other than service cost			(120	)			(152	)			(382	)			(452	)
Other, net			(9	)			-				(111	)			(162	)
Total		$	27			$	(238	)		$	262			$	(281	)

⁽¹⁾ Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds. Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag.

Filing Exhibits & Attachments

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• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 4.4 KB
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