Merck topped third-quarter analyst estimates on Thursday and raised its adjusted profit outlook, driven by stronger-than-expected sales of its immunotherapy Keytruda, including the newer injectable form Keytruda Qlex.
The company now expects adjusted earnings of $2.77 to $2.82 per share, up from a previous range of $2.66 to $2.76. The new guidance includes a one-time charge of $400 million, or 12 cents per share, tied to its licensing agreement with the Chinese cancer drugmaker SciBrunch.
Merck also narrowed the low end of its 2026 revenue guidance to $66.8 billion to $67.3 billion, from $66.3 billion to $67.3 billion.
Keytruda brought in $8.60 billion in sales for the quarter, above the $7.73 billion analysts expected, according to StreetAccount. Qlex accounted for $830 million of that total, compared with analyst expectations of $649 million. The company is positioning Qlex, which is given as an under-the-skin injection, as a central part of its growth strategy as it moves patients away from the original intravenous version.
Merck reported net income of $5.07 billion, or $2.04 per share, for the quarter, down from $5.79 billion, or $2.32 per share, a year earlier. Excluding acquisition and restructuring costs, earnings were $2.49 per share. Revenue rose 5% from a year earlier to $18.09 billion.
Other products also grew. Winrevair, used to treat a rare, deadly lung condition, generated $694 million in sales, up 93% from a year earlier and above the $645 million analysts expected. Gardasil, the HPV vaccine, drew about $2 billion in sales on higher U.S. demand, beating the $1.76 billion estimate. Merck's animal health business posted $1.68 billion in sales, slightly below estimates.
The company has been pursuing a series of deals as it prepares for generic competition to Keytruda after key patents begin expiring in 2028.