10-Q · August 7, 2026
Merck delivered $16.607 billion of second-quarter revenue, up 1.9% sequentially and 5.0% year over year, and above the $16.388 billion consensus estimate. EPS was a $0.13 loss, improving from the prior quarter’s $1.72…
Earnings analysis · 10-Q
MRK earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Merck reported strong third-quarter revenue of $18.085 billion, up 8.9% sequentially and 4.7% year over year, but GAAP EPS of $2.04 declined 12% year over year. The filing provides limited incremental operating detail,…
Read full summary
Merck reported strong third-quarter revenue of $18.085 billion, up 8.9% sequentially and 4.7% year over year, but GAAP EPS of $2.04 declined 12% year over year. The filing provides limited incremental operating detail, including no current-quarter margin, cash-flow, segment, or balance-sheet figures in the supplied text. Share repurchases totaled 4,777,585 shares, while controls remained effective and management reported no material changes in market-risk exposures.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.04
What stood out
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Revenue accelerated sequentially and year over year
Third-quarter revenue was $18.085 billion, up approximately 8.9% from $16.61 billion in Q2 2026 and 4.7% from $17.28 billion in Q3 2025.
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EPS declined despite revenue growth
GAAP EPS was $2.04, compared with $2.32 in Q3 2025, a 12% year-over-year decline, despite the revenue increase.
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Substantial share repurchase activity
Merck repurchased 4,777,585 shares during Q3 at an average price of $136.86 per share; $5.082 billion remained available under the repurchase authorization at September 30, 2026.
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Internal controls remained effective
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no changes in internal control that materially affected, or were reasonably likely to materially affect, financial reporting during Q3 2026.
What to watch
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Earnings pressure remains significant
GAAP EPS of $2.04 was 12% below the $2.32 reported in Q3 2025, indicating continuing earnings pressure even as revenue reached $18.085 billion.
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No quantified new risk disclosure
The filing states that actual results may differ materially from forward-looking statements and identifies the 2025 Form 10-K's Item 1A risk factors as applicable; the 10-Q does not quantify any newly added risk.
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Market-risk disclosures unchanged
The company reported no material changes in market-risk exposures from the 2025 Form 10-K, limiting visibility into whether the $5.082 billion remaining repurchase authorization could be affected by changed market conditions.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance; the previously reported full-year 2026 outlook was disclosed in the October 29, 2026 earnings release.
Earlier filings 2
10-Q · May 4, 2026
For Q1 2026, Merck reported revenues of $16.29 billion, reflecting a 5% increase year-over-year, outpacing estimates. However, the company posted a GAAP loss per share of $1.72, which was worse than expected, leading to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.