Merck maintains Buy rating despite mixed FY2026 EPS outlook, driven by strong portfolio and M&A growth.

Merck updated its FY2026 adjusted EPS guidance, impacted by charges from recent acquisitions, but its core capabilities remain strong. The transition to KEYTRUDA QLEX and FDA approval of Idvynso support significant revenue growth potential. Aggressive M&A and portfolio renewal efforts position Merck to exceed $70 billion in revenue by the mid-2030s despite KEYTRUDA's patent expiration. The stock offers an attractive 5-year total return estimate of 73% and a 3.11% dividend yield, reinforcing a Buy rating for investors seeking growth and income.