Merck beats Q1 revenue estimates on strong Keytruda sales, narrows 2026 sales guidance, raises profit outlook.

Merck reported first-quarter revenue of $16.29 billion, beating estimates due to strong demand for its cancer drug Keytruda and newer products like Winrevair. Despite a net loss of $4.24 billion mainly from acquisition costs related to Cidara Therapeutics, Merck raised its 2026 revenue guidance to $65.8-$67 billion and increased its adjusted earnings outlook. Keytruda sales rose 12% to $8.03 billion, driven by uptake in earlier-stage and metastatic cancers. However, Gardasil vaccine sales declined due to weak demand in China, Japan, and the U.S. Merck continues acquisitions to offset upcoming patent expirations on key drugs.