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Merck Beats in Q3 on Keytruda, Narrows 2025 Outlook as Gardasil Slumps in China

Guidance reflects lower expected tariff costs.

Overview

  • Merck reported third-quarter revenue of $17.28 billion and adjusted EPS of $2.58, topping LSEG-polled estimates of $16.96 billion and $2.35.
  • Keytruda sales rose about 10% to roughly $8.14 billion, marking the therapy’s first quarter above $8 billion.
  • Gardasil revenue fell to $1.75 billion as shipments to China remain halted while distributors work through inventories.
  • The company tightened its full-year forecast to $64.5–$65.0 billion in revenue and $8.93–$8.98 in adjusted EPS, citing lower tariff impacts along with an amended AstraZeneca deal benefit and costs from the Verona Pharma acquisition.
  • Management reiterated a $3 billion cost-reduction plan through 2027 to brace for Keytruda’s 2028 patent expiry.