Merck & Co., Inc. MRK
NYSEPharmaceuticalsFinancials to Jun 30, 2026 · Updated Oct 7, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 14.6 | 6.8 |
| Securities | 0.0 | 0.3 |
| Long-term securities | 1.0 | 1.2 |
| Restricted cash | 0.1 | 0.0 |
| Debt | 49.3 | 53.9 |
| Net cash | -33.8 | -45.5 |
| Equity | 52.6 | 41.9 |
- Debt / EBITDA
- 4.12×
- Debt / equity
- 1.29×
- Leases (12/31/25)
- $1.2B
- Diluted shares
- 2,470M
- Book value / share
- $16.98
- Price / book
- 8.4×
- Net cash / share
- −$18.44
- Market cap
- $350.2B
- Enterprise value
- $395.7B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 5.1% | +7.0 pts | |
| Operating margin | -3.5% | -35.1 pts | |
| FCF margin | 27.0% | +11.0 pts | |
| Capex / revenue | 5.4% | +0.5 pts | |
| Keytruda sales | $7.9B | -1% | |
| Gardasil sales | $1.2B | +4% | |
| Winrevair sales | $588M | +75% | |
| Livestock sales | $1.0B | +8% | |
| Companion animal sales | $734M | +7% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About MRK
Merck develops and sells prescription medicines, human vaccines and animal-health products. Pharmaceutical sales were $58.142 billion and Animal Health sales were $6.354 billion in 2025.
- IP Choke Point
Keytruda patents and data exclusivity protect a large oncology franchise.
- Scope Economies
Merck sells medicines, vaccines and identification equipment across livestock and companion species through a global commercial network.
- Data Workflow Lockin
Allflex identification, traceability and monitoring tools sit inside daily herd management.
- Sep 30, 2026
Tulisokibart met the primary and key secondary endpoints in a Phase 2b hidradenitis-suppurativa trial, extending the acquired programme beyond bowel disease; approval and commercial uptake remain unproven.
- Sep 28, 2026
Merck licensed SciBrunch SPR2015, an investigational oral KRAS G12D inhibitor, expanding its early oncology options without yet adding approved-product sales.
- Sep 25, 2026
Merck and Daiichi Sankyo withdrew the ifinatamab deruxtecan application after FDA discussions found the data insufficient for accelerated approval; a Phase 3 trial remains the route to a future filing.
- Sep 24, 2026
Remigromig met the BRUNELLO trial's vision endpoint, but higher rates of eye complications and treatment discontinuation than ranibizumab leave safety and commercial value uncertain.
- Sep 24, 2026
The FDA approved Welireg plus Lenvima for previously treated advanced clear-cell kidney cancer, expanding access; the trial improved progression-free survival but did not show a significant overall-survival benefit.
Ownership
Go deeper on MRK
- Compare stock research toolsFundamentals, valuation and screening platforms for MRK.19 tools
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- Read MRK's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 14.28 | 14.60 | 15.79 | 15.16 | 16.34 | 19.19 | 23.32 | 23.60 | 25.25 | 25.93 | 26.95 | +6.9%/yr | |
| Cash flow | 3.72 | 2.35 | 4.08 | 3.44 | 3.00 | 5.17 | 7.51 | 5.11 | 8.45 | 6.57 | 8.08 | +6.5%/yr | |
| Earnings | 1.41 | 0.87 | 2.32 | 2.21 | 1.78 | 4.86 | 5.71 | 0.14 | 6.74 | 7.28 | 1.28 | +20.0%/yr | |
| Free cash flow | 3.14 | 1.66 | 3.10 | 2.14 | 1.25 | 3.42 | 5.79 | 3.59 | 7.12 | 4.93 | 6.50 | +5.1%/yr | |
| Capex | 0.58 | 0.69 | 0.98 | 1.31 | 1.74 | 1.75 | 1.73 | 1.52 | 1.33 | 1.64 | 1.58 | +12.3%/yr | |
| Dividends | 1.84 | 1.88 | 1.93 | 2.21 | 2.45 | 2.60 | 2.76 | 2.92 | 3.09 | 3.26 | 3.36 | +6.6%/yr | |
| Book value | 14.38 | 12.49 | 9.97 | 10.04 | 9.96 | 15.04 | 18.09 | 14.76 | 18.23 | 20.98 | 16.98 | +4.3%/yr | |
| Diluted shares (M) | 2,787 | 2,748 | 2,679 | 2,580 | 2,541 | 2,538 | 2,542 | 2,547 | 2,541 | 2,507 | 2,470 | -1.2%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 39.8 | 40.1 | 42.3 | 39.1 | 41.5 | 48.7 | 59.3 | 60.1 | 64.2 | 65.0 | 66.6 | +5.6%/yr | |
| Operating income | 4.8 | 6.0 | 8.3 | 7.3 | 5.0 | 12.5 | 17.9 | 2.4 | 19.9 | 21.2 | 6.4 | +17.8%/yr | |
| Net income | 3.9 | 2.4 | 6.2 | 5.7 | 4.5 | 12.3 | 14.5 | 0.4 | 17.1 | 18.3 | 3.2 | +18.6%/yr | |
| Free cash flow | 8.8 | 4.6 | 8.3 | 5.5 | 3.2 | 8.7 | 14.7 | 9.1 | 18.1 | 12.4 | 16.1 | +3.9%/yr | |
| Buybacks | 3.4 | 4.0 | 9.1 | 4.8 | 1.3 | 0.8 | 0.0 | 1.3 | 1.3 | 5.1 | 4.2 | +4.5%/yr | |
| Dividends | 5.1 | 5.2 | 5.2 | 5.7 | 6.2 | 6.6 | 7.0 | 7.4 | 7.8 | 8.2 | 8.3 | +5.3%/yr | |
| Net cash | 0.9 | -3.8 | -10.0 | -14.4 | -23.0 | -24.6 | -16.5 | -27.7 | -23.0 | -33.8 | -45.5 | −$34.7B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 64.8 | 67.8 | 68.1 | 69.3 | 67.2 | 72.0 | 70.6 | 73.2 | 76.3 | 74.8 | 73.0 | +10.0 pts | |
| Operating margin | 12.2 | 15.0 | 19.6 | 18.7 | 12.0 | 25.7 | 30.3 | 3.9 | 31.0 | 32.6 | 9.6 | +20.5 pts | |
| Net margin | 9.8 | 6.0 | 14.7 | 14.5 | 10.9 | 25.3 | 24.5 | 0.6 | 26.7 | 28.1 | 4.8 | +18.2 pts | |
| FCF margin | 22.0 | 11.4 | 19.6 | 14.1 | 7.7 | 17.8 | 24.8 | 15.2 | 28.2 | 19.0 | 24.1 | -3.0 pts | |
| ROIC | 8.0 | 10.0 | 16.2 | 14.6 | 8.5 | 16.6 | 23.6 | 3.0 | 23.9 | 20.3 | 6.0 | +12.3 pts | |
| Return on equity | 9.8 | 7.0 | 23.3 | 22.0 | 17.8 | 32.3 | 31.6 | 1.0 | 37.0 | 34.7 | 7.6 | +24.9 pts | |
| R&D % of revenue | 25.8 | 25.8 | 23.1 | 24.9 | 32.3 | 25.1 | 22.9 | 50.8 | 28.0 | 24.3 | 45.7 | -1.5 pts | |
| Stock pay % of revenue | 0.8 | 0.8 | 0.8 | 1.0 | 1.1 | 1.0 | 0.9 | 1.1 | 1.2 | 1.3 | 1.3 | +0.5 pts | |
| Capex % of revenue | 4.1 | 4.7 | 6.2 | 8.6 | 10.7 | 9.1 | 7.4 | 6.4 | 5.3 | 6.3 | 5.9 | +2.3 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- medium
- Trajectory
- narrowing
- Pricing power
- moderate
- Pharmaceutical89.4%1 claim
- Animal Health9.8%2 claims
Moat claims
- Applies to
- Pharmaceutical
- Confidence
- Durability
- medium
- Trajectory
- narrowingas of Oct 7, 2026
Keytruda patents and data exclusivity protect a large oncology franchise. Intravenous protection faces US biosimilar entry from December 2028. The subcutaneous Qlex formulation has separate US protection through 2043, but patients and payers can still choose cheaper intravenous alternatives. Winrevair has US data exclusivity through 2036. These are product-specific, finite rights.
Keytruda and Qlex sold $8.366 billion in Q2 2026, but the intravenous compound patent expires in December 2028; $463 million of Qlex sales and $588 million of Winrevair sales show progress without yet replacing the exposed franchise.
- Keytruda sales$7.9B-1%
- Gardasil sales$1.2B+4%
- Winrevair sales$588M+75%
- Keytruda Qlex sales$463M
- Patent cliffs for blockbuster products (e.g., Keytruda) and accelerated generic/biosimilar uptake
- Patent challenges / adverse court outcomes / weaker IP regimes in some markets
- Government price-setting or reimbursement reforms compressing economics even before loss of exclusivity
- FilingMerck & Co., Inc. Form 10-K (FY ended 2025-12-31) - Patent protection / market exclusivity discussionFeb 24, 2026
- FilingMerck & Co., Inc. Form 10-K (FY ended 2025-12-31) - Loss of exclusivity riskFeb 24, 2026
- FilingMerck & Co., Inc. Form 10-K (FY ended 2025-12-31) - Key product market exclusivity tableFeb 24, 2026
- Applies to
- Animal Health
- Confidence
- Durability
- durable
- Trajectory
- wideningas of Oct 7, 2026
Merck sells medicines, vaccines and identification equipment across livestock and companion species through a global commercial network. Elanco aqua and TARGAN widen that portfolio. Shared selling and service can support scale, but Merck does not disclose cost savings attributable to scope, and Zoetis and Boehringer also have broad portfolios.
Animal Health sales reached $1.775 billion in Q2 2026, and the July purchase of TARGAN adds poultry identification and vaccine-delivery equipment to the existing medicines and monitoring portfolio; cost-sharing benefits still need proof.
- Livestock sales$1.0B+8%
- Companion animal sales$734M+7%
- Portfolio gaps vs. peers in high-growth companion animal categories
- Direct-to-consumer channels and online pharmacies weaken traditional veterinary distribution advantages
- M&A by rivals expanding competing portfolios and scope
- Applies to
- Animal Health
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Allflex identification, traceability and monitoring tools sit inside daily herd management. Replacing installed hardware and reconnecting records can add switching effort. Merck discloses the product suite, but does not disclose renewal rates, customer retention or contract terms; the size of this advantage remains uncertain.
Livestock sales reached $1.041 billion in Q2 2026, but Merck reports neither technology-only sales nor retention, so broader sales growth does not prove stronger switching costs.
- Livestock sales$1.0B+8%
- Commoditization of hardware tags/sensors and emergence of open standards
- Interoperability improvements lowering switching costs
- Lower-cost entrants bundling hardware + software
Profile change log
- Oct 7, 2026 · business change
Tulisokibart met the primary and key secondary endpoints in a Phase 2b hidradenitis-suppurativa trial, extending the acquired programme beyond bowel disease; approval and commercial uptake remain unproven.
- Oct 7, 2026 · business change
Merck licensed SciBrunch SPR2015, an investigational oral KRAS G12D inhibitor, expanding its early oncology options without yet adding approved-product sales.
- Oct 7, 2026 · business change
Merck and Daiichi Sankyo withdrew the ifinatamab deruxtecan application after FDA discussions found the data insufficient for accelerated approval; a Phase 3 trial remains the route to a future filing.
- Oct 7, 2026 · business change
The FDA approved Lipfendra, the first oral PCSK9 inhibitor, giving Merck a new cholesterol-treatment launch beyond oncology.
- Oct 7, 2026 · business change
Merck bought TARGAN for about $650 million, adding automated poultry identification and vaccine-delivery equipment to Animal Health.
- Oct 7, 2026 · business change
Merck bought Terns for $6.8 billion, adding blood-cancer candidate MK-4208 and recording a $5.7 billion acquired-research expense.
- Oct 7, 2026 · business change
Merck bought Cidara for $9.2 billion, adding influenza-prevention candidate MK-1406 and recording a $9.0 billion acquired-research expense before approval.
- Oct 7, 2026 · business change
Merck spun off Organon, separating women's health, biosimilars and established brands; the remaining business became more dependent on newer medicines and oncology.
- Oct 7, 2026 · analyst revision
The latest product mix, patent calendar and pipeline evidence now support a narrowing pharmaceutical IP trajectory, widening Animal Health scope, and stable but uncertain farm-workflow protection. The bull and bear cases now test replacement of Keytruda income, acquisition returns and payer access.
- Oct 7, 2026 · analyst revision
FY2025 consolidated sales replace the Q2-only segment weights. Profit shares are removed because segment profit excludes human R&D and corporate costs. The Animal Health share estimate is removed because its broad market denominator does not match the segment. Industry-wide regulatory approval is removed as a separate Animal Health moat; the two portfolio and workflow claims remain.
- Oct 7, 2026 · business change
The FDA approved Welireg plus Lenvima for previously treated advanced clear-cell kidney cancer, expanding access; the trial improved progression-free survival but did not show a significant overall-survival benefit.
- Oct 7, 2026 · business change
Remigromig met the BRUNELLO trial's vision endpoint, but higher rates of eye complications and treatment discontinuation than ranibizumab leave safety and commercial value uncertain.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global prescription pharmaceuticals
Prescription medicines sold through retail and hospital channels at manufacturer prices worldwide, including originator brands, generics and biosimilars. Roche and CSL Vifor compete in specialty medicines, with each serving only part of this market. This broad market excludes diagnostics, medical devices and over-the-counter medicines; it is not a company-addressable revenue forecast.
- Eli Lilly
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| MRK | 83 | 73.0% | 9.6% | |
| Industry median | 17 | 69 | 72.9% | 22.1% |
| Sector median | 55 | 76 | 61.5% | 17.0% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Aging populations and long treatment periods support demand for cancer, immune and neurological medicines. Patient need is less sensitive to the economic cycle than discretionary spending.
- New indications and better clinical outcomes expand treated populations; a successful launch can replace revenue lost when an older product loses exclusivity.
- Biologics and convenient formulations can improve care and adoption, but convenience must remain valuable against new treatments.
- Insurance coverage and healthcare access expand demand in emerging markets; reimbursement inclusion can increase volume while lowering price.
- Growing cancer treatment options and diagnostic testing can increase eligible patients; commercial value still depends on better outcomes and reimbursement.
- Patent expiry and biosimilar entry remove product protection. Clinical superiority can also take share before patents expire.
- US Medicare negotiation and international reference pricing, European reimbursement reviews and Chinese tenders constrain price. Voluntary agreements can exchange tariff relief for price concessions and change the timing of launches across countries.
- Trials, safety findings, manufacturing control failures and failed acquired drug programmes can destroy invested capital or restrict supply. Pipeline size and patents alone do not establish commercial success.
- Higher interest rates raise acquisition and financing costs. Tariffs, local production rules and biologic manufacturing requirements increase the cash needed to launch and supply products.
- Exchange-rate moves change reported sales and profit for global manufacturers. Merck reported Q2 2026 sales growth of 5% in USD and 4% excluding currency, while Roche's Swiss-franc reporting faced translation pressure.
- Vaccine eligibility, uptake and public procurement can change quickly. Pfizer’s XFG-adapted Comirnaty approval covers older people and younger people with a risk condition, constraining the eligible market.
Bulls & bears
Can new medicines and the subcutaneous Keytruda formulation replace the cash income exposed to intravenous Keytruda biosimilars from 2028 without repeated expensive pipeline purchases?
Arguments
What to watch
- 1Keytruda intravenous and Qlex sales reported separately
- 2Winrevair, Ohtuvayre and Lipfendra launch sales and payer access
- 3Operating cash flow after capex and cash spent on new drug programmes
Next check: October 10, 2026 AAO BRUNELLO presentation, October 26 ESMO investor event and confirmed October 29 Q3 results; check safety and new-product sales against patent and vaccine risks.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 6, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 83/100 by <a href="https://www.findmymoat.com/stocks/XNYS:MRK">Find My Moat</a> (as of September 2026)Request update
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Curation & Accuracy
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