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Saturday 10 October 2026 Export all MRK data to Excel Powerpack

Merck & Co., Inc.

MRK Healthcare Drug Manufacturers General

Merck & Co., Inc.’s revenue for fiscal 2025 (year ended December 2025) was $65.0 billion, up 1.31% from fiscal 2024. In the quarter to June 2026, revenue grew 5.07%, EPS fell 130.7%, free cash flow grew 77.0% and total debt rose 50.4%, each against the same quarter a year earlier. Member of the S&P 500 and Dow Jones; dividend growth for twenty-five consecutive years, revenue growth for five.

145.60 3.22 +2.26%
Market cap
$351.3B
P/E
116×
Fwd P/E
53.9×
Dividend yield
2.34%
F-score
4/9
Altman Z
3.77
Beneish M
−2.27
Dividend safety
74/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Merck & Co., Inc. (MRK) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Revenue was $65.0 billion in FY2025, compared with $64.2 billion in FY2024, while net income was $18.3 billion in FY2025, compared with $17.1 billion in FY2024. Diluted EPS was $7.28 in FY2025, against $6.74 in FY2024.

Revenue was $16.6 billion in Q2 FY2026, versus $16.3 billion in Q1 FY2026 and $15.8 billion in Q2 FY2025. Operating income was −$433.0 million in Q2 FY2026 and net income was −$1.3 billion in Q2 FY2026. Free cash flow was $4.5 billion in Q2 FY2026.

Growth

Revenue growth was 1.31% in FY2025 against FY2024, and revenue compound annual growth was 3.12% in FY2022–FY2025 and 9.38% in FY2020–FY2025. Diluted EPS growth was 8.01% in FY2025 against FY2024, with compound annual growth of 8.43% in FY2022–FY2025 and 21.2% in FY2020–FY2025.

Free cash flow growth was −31.7% in FY2025 against FY2024, while its compound annual growth was −5.63% in FY2022–FY2025 and 31.1% in FY2020–FY2025. Revenue increased 1.97% in Q2 FY2026 against Q1 FY2026 and 5.07% in Q2 FY2026 against Q2 FY2025. Free cash flow increased 53.0% in Q2 FY2026 against Q1 FY2026 and 77.0% in Q2 FY2026 against Q2 FY2025. Diluted EPS was −$0.54 in Q2 FY2026, versus −$1.72 in Q1 FY2026 and $1.76 in Q2 FY2025.

Profitability

Gross margin was 74.8% in FY2025, a change of −1.5 percentage points in FY2024–FY2025, and a change of 7.6 percentage points in FY2020–FY2025. Operating margin was 34.0% in FY2025, a change of 2.5 percentage points in FY2024–FY2025 and 20.6 percentage points in FY2020–FY2025. Net margin was 28.1% in FY2025, a change of 1.4 percentage points in FY2024–FY2025 and 17.2 percentage points in FY2020–FY2025.

Return on equity was 36.9% in FY2025, compared with 40.8% in FY2024. Return on assets was 14.4% in FY2025, compared with 15.3% in FY2024, while return on invested capital was 16.3% in FY2025, compared with 18.8% in FY2024. Gross margin was 73.5% in Q2 FY2026 and operating margin was −2.61% in Q2 FY2026. Industry-median profitability comparisons are not reported.

Balance sheet

Total debt was $46.8 billion in FY2025, compared with $34.5 billion in FY2024, and net debt was $32.2 billion in FY2025, compared with $20.8 billion in FY2024. Cash and short-term investments were $14.6 billion in FY2025, while shareholders’ equity was $52.7 billion in FY2025 and working capital was $15.2 billion in FY2025.

Net debt was $43.9 billion in Q2 FY2026, compared with $41.0 billion in Q1 FY2026 and $25.3 billion in Q2 FY2025. The current ratio was 1.3× in Q2 FY2026, and debt to equity was 1.2× in Q2 FY2026.

Cash flow & capital return

Operating cash flow was $16.5 billion in FY2025, down from $21.5 billion in FY2024, while capital expenditure was $4.1 billion in FY2025, compared with $3.4 billion in FY2024. Free cash flow was $12.4 billion in FY2025, compared with $18.1 billion in FY2024, and represented 67.7% of net income in FY2025.

Dividends paid were $8.2 billion in FY2025, and net share repurchases were $5.0 billion in FY2025. Capital returned to shareholders was $13.2 billion in FY2025 and $44.7 billion in FY2021–FY2025. Weighted average shares were 2.5 billion shares in FY2025, with a change of −1.11% in FY2020–FY2025. Operating cash flow was $20.0 billion in TTM to Q2 FY2026, and free cash flow was $16.1 billion in TTM to Q2 FY2026.

Valuation

Market capitalisation was $365.5 billion as of September 24, 2026. P/E was 118× as of September 24, 2026, higher than the five-year median of 14.9× as of September 24, 2026, over the five fiscal years to FY2025, and higher than the ten-year median of 25.5× as of September 24, 2026, over the ten fiscal years to FY2025.

P/S was 5.5× as of September 24, 2026, higher than the five-year median of 4.1× as of September 24, 2026, over the five fiscal years to FY2025, and higher than the ten-year median of 4.3× as of September 24, 2026, over the ten fiscal years to FY2025. P/B was 8.7× as of September 24, 2026, higher than the five-year median of 5.4× as of September 24, 2026, over the five fiscal years to FY2025. EV/Sales was 6.2× as of September 24, 2026, and EV/Cash flow was 25.5× as of September 24, 2026. Industry-median valuation comparisons are not reported.

What changed since last quarter

Revenue increased 1.97% in Q2 FY2026 against Q1 FY2026, reaching $16.6 billion in Q2 FY2026 from $16.3 billion in Q1 FY2026. Gross margin changed by −0.7 percentage points in Q2 FY2026 against Q1 FY2026, while operating margin changed by 17.0 percentage points in Q2 FY2026 against Q1 FY2026. Free cash flow increased 53.0% in Q2 FY2026 against Q1 FY2026, and net debt increased by $3.0 billion in Q2 FY2026 against Q1 FY2026.

Revenue increased 5.07% in Q2 FY2026 against Q2 FY2025, while diluted EPS changed by −130.7% in Q2 FY2026 against Q2 FY2025. Gross margin changed by −4.0 percentage points in Q2 FY2026 against Q2 FY2025, and operating margin changed by −37.7 percentage points in Q2 FY2026 against Q2 FY2025. Free cash flow increased 77.0% in Q2 FY2026 against Q2 FY2025, and net debt increased by $18.6 billion in Q2 FY2026 against Q2 FY2025. No management explanation for these changes is reported.

Open questions

  • What factors drove the loss reported in the latest quarter?
  • What explains the increase in net debt during the latest quarter?
  • What factors account for the difference between revenue growth and the change in earnings?
  • What drove the change in gross and operating margins in the latest quarter?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.