Merck tops quarterly estimates, hikes profit outlook as new Keytruda form shows strength

Merck on Thursday topped third-quarter estimates and hiked its adjusted profit outlook, as its immunotherapy Keytruda, including a newer injectable form of the drug, showed stronger-than-expected sales.

The pharmaceutical giant now expects adjusted earnings to be between $2.77 and $2.82 per share. That adjusted profit outlook is up from a previous range of $2.66 to $2.76 per share. The guidance now includes a one-time charge of $400 million, or 12 cents per share, related to its licensing agreement with the Chinese cancer drugmaker SciBrunch

Merck also narrowed the low end of its 2026 revenue guidance, now expecting sales between $66.8 billion and $67.3 billion. That compares to a previous outlook of $66.3 billion to $67.3 billion.

The company has been on a deal spree as it races to offset generic competition for Keytruda after key patents begin expiring in 2028.

Merck is also positioning the new form of the drug, Keytruda Qlex, as a cornerstone of its growth strategy. The goal is to transition patients from the original intravenous version to Qlex, considered a more convenient under-the-skin injection. This strategy allows the company to defend its market share and sustain Keytruda's blockbuster sales beyond the original version's loss of exclusivity.

Keytruda raked in $8.60 billion in sales for the quarter, beating the $7.73 billion that analysts were expecting, according to StreetAccount. That includes $830 million in sales for Qlex – the highest seen in a quarter since it launched in 2025.

Analysts were expecting $649 million in sales, StreetAccount estimates said. The blowout quarter for the shot suggests it could soon be a blockbuster product, meaning it could rake in more than $1 billion in sales for the company.

Here's what Merck reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

The company posted a net income of $5.07 billion, or $2.04 per share, for the quarter. That compares with net income of $5.79 billion, or $2.32 per share, for the year-earlier period.

Excluding acquisition and restructuring costs, Merck posted earnings of $2.49 per share for the third quarter.

Merck raked in $18.09 billion in revenue for the quarter, up 5% from the same period a year earlier.

Beyond Keytruda, Merck's newer products also showed strong growth.