Overview

• Merck has unveiled a multiyear optimization program that aims to eliminate $3 billion of costs by the end of 2027.
• The restructuring will target administrative, sales and R&D roles alongside reductions in global real estate and manufacturing capacity.
• Q2 revenue fell 2% to $15.8 billion, marking the first quarterly miss since April 2021, with Keytruda sales up 9% and Gardasil shipments plunging 55%.
• The company recorded a $649 million Q2 restructuring charge and expects total pretax costs of about $3 billion for the program.
• Merck narrowed its 2025 guidance to $8.87–$8.97 EPS and $64.3–$65.3 billion revenue and paused Gardasil shipments to China through year-end 2025.