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Merck (MRK) Q1 FY2026 earnings: revenue $16.3 billion, up 4.9% on the year

Merck & Co., Inc. (MRK) reported revenue of $16.3 billion for Q1 FY2026, the quarter ended 31 March 2026, up 4.9% on the same quarter a year earlier. Net income was -$4.2 billion, and diluted earnings per share $-1.72. The figures are the company's own, from the 10-Q it filed with the SEC on 4 May 2026.

Revenue
$16.3 billion
+4.9% on the year · -0.7% on the quarter
Q2 FY2024Q1 FY2026
Operating margin
n/a
Q2 FY2024Q1 FY2026
Net income
-$4.2 billion
Q2 FY2024Q1 FY2026
Diluted EPS
-$1.72
Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 raised, 1 lowered, 1 narrowed, 2 new, 6 kept.

  • Sales rose five percent to $16.3 billion: Total sales were $16.3 billion, up 5% (3% ex-FX). Pharmaceutical sales rose 5% to $14.3 billion, with growth in oncology and cardiometabolic and respiratory, partly offset by vaccines, diabetes and infectious diseases.
  • Loss per share driven by Cidara charge: GAAP loss per share was $1.72 against EPS of $2.01 a year earlier; non-GAAP loss per share was $1.28 against $2.22. Both include a $3.62 per-share Cidara charge.
  • KEYTRUDA sales rose 12 percent: KEYTRUDA/KEYTRUDA QLEX sales were $8.0 billion, up 12% (8% ex-FX), including $128 million of KEYTRUDA QLEX. Management tied part of the growth to U.S. wholesaler purchase timing.
Read the earnings call summary

Income statement (profit and loss)

$ millionQ1 FY2026Q4 FY2025Q1 FY2025On the quarterOn the yearLast 8 quarters
Revenue16,28616,40015,529-0.7%+4.9%
Cost of revenue4,1955,5513,419-24.4%+22.7%
Gross profit12,09110,84912,110+11.4%-0.2%
Gross margin74.2%66.2%78.0%
Research and development12,5923,8863,621+224.0%+247.7%
Selling, general and administrative2,7002,8992,552-6.9%+5.8%
Interest expense479412313+16.3%+53.0%
Pre-tax income-3,5343,4205,903
Income tax709457818+55.1%-13.3%
Effective tax raten/a13.4%13.9%
Net income-4,2402,9635,079
Net margin-26.0%18.1%32.7%
Diluted EPS-$1.72$1.19$2.01
$ million except per share.
Read moreFourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionQ1 FY2026Q4 FY2025Q1 FY2025On the quarterOn the yearLast 8 quarters
Operating cash flow3,9182,8572,500+37.1%+56.7%
Capital expenditure9911,0331,328-4.1%-25.4%
Free cash flow2,9271,8241,172+60.5%+149.7%
Free cash flow margin18.0%11.1%7.5%
Cash from investing-10,210-11,201-1,487
Cash from financing-2,9814,751-5,755
Share-based compensation185205195-9.8%-5.1%
Buybacks8741,2521,164-30.2%-24.9%
Dividends paid2,1052,0182,050+4.3%+2.7%
Dividend per share$0.85n/a$0.81+4.9%
Diluted shares, weighted2,472m2,488m2,531m-0.6%-2.3%
Shares outstanding at period end2,470m2,472m2,511m-0.1%-1.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ millionQ1 FY2026Q4 FY2025Q1 FY2025On the quarterOn the yearLast 8 quarters
Shareholders' equity45,87852,60648,335-12.8%-5.1%
Non-controlling interest53.056.065.0-5.4%-18.5%
Debt49,10049,30034,800-0.4%+41.1%
Operating lease liabilitiesn/a901n/a
Other liabilities33,65434,00331,922-1.0%+5.4%
Total liabilities and equity128,685136,866115,122-6.0%+11.8%
Fixed assets25,43325,31624,793+0.5%+2.6%
Goodwill21,58121,57921,684+0.0%-0.5%
Intangible assets25,74526,68115,758-3.5%+63.4%
Investments1,4809561,215+54.8%+21.8%
Cash and equivalents5,32714,5658,629-63.4%-38.3%
Receivables12,21011,77510,790+3.7%+13.2%
Inventory6,4796,6586,196-2.7%+4.6%
Other assets30,43029,33626,057+3.7%+16.8%
Total assets128,685136,866115,122-6.0%+11.8%

Questions

What was Merck's revenue in Q1 FY2026?

Merck (MRK) reported revenue of $16.3 billion for Q1 FY2026, the quarter ended 31 March 2026, up 4.9% on the same quarter a year earlier.

How much did Merck earn in Q1 FY2026?

Net loss for Q1 FY2026 was $4.2 billion, and the diluted loss per share $1.72.

When did Merck report Q1 FY2026 results?

Merck filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 4 May 2026.

Quarterly results, the last 20 quarters

Q4 FY2021 * †Q1 FY2022Q2 FY2022Q3 FY2022Q4 FY2022 *Q1 FY2023Q2 FY2023Q3 FY2023Q4 FY2023 *Q1 FY2024Q2 FY2024Q3 FY2024Q4 FY2024 *Q1 FY2025Q2 FY2025Q3 FY2025Q4 FY2025 *Q1 FY2026Q2 FY2026Q3 FY2026
Revenue13,52115,90114,59314,95913,83014,48715,03515,96214,63115,77516,11216,65715,62415,52915,80617,27616,40016,28616,60718,085
Cost of revenue3,8735,3804,2163,9343,8813,9264,0244,2643,9123,5403,7454,0803,8283,4193,5573,8555,5514,1954,3954,892
Gross profit9,64810,52110,37711,0259,94910,56111,01111,69810,71912,23512,36712,57711,79612,11012,24913,42110,84912,09112,21213,193
Gross margin71%66%71%74%72%73%73%73%73%78%77%76%75%78%77%78%66%74%74%73%
R&D3,0672,5762,7984,3993,7754,27613,3213,3079,6273,9923,5005,8624,5843,6214,0484,2343,88612,5929,7414,537
SG&A2,8302,3232,5122,5202,6872,4792,7022,5192,8042,4832,7392,7312,8632,5522,6492,6332,8992,7002,9042,886
Interest expense208243240244235242277317310303310330328313305327412479525546
Pre-tax income3,9094,8614,4873,5833,5133,650-5,3355,620-2,0465,6706,0064,0904,1705,9034,9996,7453,420-3,534-6835,559
Tax rate2%11%12%9%14%23%n/a15%n/a16%9%23%10%14%11%14%13%n/an/a9%
Net income3,7584,3103,9443,2483,0172,821-5,9754,745-1,2264,7625,4553,1573,7435,0794,4275,7852,963-4,240-1,3355,065
Net margin28%27%27%22%22%19%-40%30%-8%30%34%19%24%33%28%33%18%-26%-8%28%
Diluted EPS$1.48$1.70$1.55$1.28$1.18$1.11-$2.35$1.86-$0.48$1.87$2.14$1.24$1.48$2.01$1.76$2.32$1.19-$1.72-$0.54$2.04
Operating cash flown/a4,7614,3025,6024,4301,3393,7047,7172463,0905,6379,2913,4502,5003,2937,8222,8573,9185,3706,558
Capital expenditure1,2089841,1291,1261,1491,0079659029898617917839371,3287649871,0339918931,040
Free cash flown/a3,7773,1734,4763,2813322,7396,815-7432,2294,8468,5082,5131,1722,5296,8351,8242,9274,4775,518
Buybacks18.00.00.00.00.01493384663931222514444891,1641,3451,3231,252874757653
Dividends paid1,6431,7451,7701,7471,7501,8531,8851,8551,8521,9501,9861,9531,9512,0502,0772,0312,0182,1052,1442,099
Shares outstanding2,528m2,529m2,533m2,535m2,539m2,537m2,538m2,534m2,533m2,533m2,535m2,530m2,526m2,511m2,498m2,482m2,472m2,470m2,467m2,465m
Filing10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q
Each quarter as filed, linked to its filing.
Read more* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 4 May 2026: the filing.