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Merck beats earnings again but faces patent cliff; pipeline success key to future growth.

Company Fundamentals
03 Nov 2026, 20:03 WIB
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Neutral
Merck beats earnings again but faces patent cliff; pipeline success key to future growth.

Merck reported its sixth consecutive earnings beat with strong revenue growth driven by new drugs like Keytruda and raised its profit outlook for 2026. Despite this, the stock faces a significant patent cliff, especially with Keytruda facing generic competition in 2027, which could pressure sales. The company’s pipeline, including promising Phase 3 trial results for sac-TMT and other drugs, is seen as crucial to offsetting these risks and driving long-term growth toward a $70 billion revenue target in the mid-2030s. Analysts remain cautious with a hold rating, noting the stock’s current high valuation already prices in expected pipeline success.

As of Nov 04, 2026 01:21 WIB, Merck & Co., Inc. (MRK) trades at USD 144.88 on Pluang, down 2.35% for the day. The stock shows strong investor interest with 94% of orders to buy and a typical hold time of 97 days. Despite the recent earnings beat and pipeline optimism, the market cap stands at $366.03 billion, reflecting cautious sentiment amid high valuation and upcoming patent challenges.

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