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Merck (MRK) Q2 FY2026 earnings: revenue $16.6 billion, up 5.1% on the year

Merck & Co., Inc. (MRK) reported revenue of $16.6 billion for Q2 FY2026, the quarter ended 30 June 2026, up 5.1% on the same quarter a year earlier. Net income was -$1.3 billion, and diluted earnings per share $-0.54. The figures are the company's own, from the 10-Q it filed with the SEC on 7 August 2026.

Revenue
$16.6 billion
+5.1% on the year · +2.0% on the quarter
Q3 FY2024Q2 FY2026
Operating margin
n/a
Q3 FY2024Q2 FY2026
Net income
-$1.3 billion
Q3 FY2024Q2 FY2026
Diluted EPS
-$0.54
Q3 FY2024Q2 FY2026

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

What management said

Guidance figures: 4 raised, 2 lowered, 1 kept.

  • Sales rose 5% to $16.6 billion: Total worldwide sales were $16.6 billion, up 5% (4% ex-FX) from $15.8 billion a year earlier. Pharmaceutical sales were $14.8 billion, up 5%.
  • Terns charge drove the quarter's loss: GAAP loss per share was $0.54 and non-GAAP loss per share was $0.13. Both include a $2.31 per share charge for the Terns acquisition. Prior-year GAAP EPS was $1.76.
  • Full-year EPS range reset by charges: Full-year non-GAAP EPS range is now $2.66 to $2.76, down from $5.04 to $5.16. The range includes one-time charges for the Cidara and Terns acquisitions.
Read the earnings call summary

Income statement (profit and loss)

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Revenue16,60716,28615,806+2.0%+5.1%
Cost of revenue4,3954,1953,557+4.8%+23.6%
Gross profit12,21212,09112,249+1.0%-0.3%
Gross margin73.5%74.2%77.5%
Research and development9,74112,5924,048-22.6%+140.6%
Selling, general and administrative2,9042,7002,649+7.6%+9.6%
Interest expense525479305+9.6%+72.1%
Pre-tax income-683-3,5344,999
Income tax654709571-7.8%+14.5%
Effective tax raten/an/a11.4%
Net income-1,335-4,2404,427
Net margin-8.0%-26.0%28.0%
Diluted EPS-$0.54-$1.72$1.76
$ million except per share.
Read moreFree 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

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Operating cash flow5,3703,9183,293+37.1%+63.1%
Capital expenditure893991764-9.9%+16.9%
Free cash flow4,4772,9272,529+53.0%+77.0%
Free cash flow margin27.0%18.0%16.0%
Cash from investing-5,602-10,210-770
Cash from financing1,762-2,981-3,556
Share-based compensation298185216+61.1%+38.0%
Buybacks7578741,345-13.4%-43.7%
Dividends paid2,1442,1052,077+1.9%+3.2%
Dividend per share$0.85$0.85$0.810.0%+4.9%
Diluted shares, weighted2,470m2,472m2,513m-0.1%-1.7%
Shares outstanding at period end2,467m2,470m2,498m-0.1%-1.2%

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

Balance sheet

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Shareholders' equity41,93345,87848,993-8.6%-14.4%
Non-controlling interest51.053.067.0-3.8%-23.9%
Debt53,90049,10035,400+9.8%+52.3%
Other liabilities33,91833,65433,063+0.8%+2.6%
Total liabilities and equity129,802128,685117,523+0.9%+10.4%
Fixed assets25,73725,43325,236+1.2%+2.0%
Goodwill21,58221,58121,591+0.0%-0.0%
Intangible assets24,97825,74515,193-3.0%+64.4%
Investments1,5141,4801,389+2.3%+9.0%
Cash and equivalents6,8495,3278,007+28.6%-14.5%
Receivables12,56412,21011,846+2.9%+6.1%
Inventory6,2076,4796,601-4.2%-6.0%
Other assets30,37130,43027,660-0.2%+9.8%
Total assets129,802128,685117,523+0.9%+10.4%

Questions

What was Merck's revenue in Q2 FY2026?

Merck (MRK) reported revenue of $16.6 billion for Q2 FY2026, the quarter ended 30 June 2026, up 5.1% on the same quarter a year earlier.

How much did Merck earn in Q2 FY2026?

Net loss for Q2 FY2026 was $1.3 billion, and the diluted loss per share $0.54.

When did Merck report Q2 FY2026 results?

Merck filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 7 August 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 30 June 2026, filed 7 August 2026: the filing.