Merck beats third-quarter estimates and raises 2026 sales and earnings outlook

Data from the ESMO oncology meeting added to the company's long-term pipeline case, its chairman and chief executive said.

Merck reported third-quarter earnings per share of $2.49, which was $0.39 above expectations. Revenue came in at $18.09 billion, against $17.49 billion expected.

The company raised its full-year 2026 sales outlook to $66.8 billion to $67.3 billion, up from $66.3 billion to $67.3 billion. The top of the range did not change. It also raised its full-year non-GAAP earnings per share outlook to $2.77 to $2.82, from $2.66 to $2.76. Non-GAAP is a company measure that leaves out certain items, such as one-off costs.

Robert Davis, Merck's chairman and chief executive, said that data presented at the ESMO oncology meeting further reduced risk in the company's long-term pipeline. The data included new results for sac-TMT and the first Phase 3 result validating a therapeutic cancer vaccine.

Through October, sac-TMT data and results for intismeran-Keytruda were cited as evidence that Merck was diversifying beyond its core business. On October 22, Merck shares fell 3.1 per cent. That fall reflected concern across the sector after Moderna's slide, not anything specific to Merck.

This quarter and the raised 2026 outlook give concrete financial support to that pipeline case. With both the sales and earnings outlooks raised, the quarter shows pipeline progress turning into near-term numbers, not only a longer-term idea.