Merck Stock Declines After Weak 2025 Guidance Despite Strong Q4 Results

The pharmaceutical giant exceeded Q4 revenue and earnings estimates but disappointed investors with a muted outlook for the year ahead.

Merck reported Q4 2024 revenue of $15.6 billion, a 7% year-over-year increase, exceeding Wall Street estimates of $15.5 billion.
Adjusted earnings per share for Q4 came in at $1.72, surpassing the consensus estimate of $1.62 and significantly higher than the $0.03 reported in the prior year.
The company provided 2025 sales guidance of $64.1 billion to $65.6 billion, falling short of analysts' consensus of $67.3 billion, leading to a 9% drop in its stock price.
Key revenue drivers included a 19% growth in Keytruda sales, reaching $7.8 billion, while Gardasil sales declined 17%, partly due to paused shipments to China to address inventory issues.
Analysts remain optimistic about Merck's long-term potential, citing its robust late-stage drug pipeline and strategic acquisitions, despite short-term challenges and investor concerns.