Merck & Co., Inc. (NYSE:MRK) Trading 2.2% Higher on Earnings Beat

Merck & Co., Inc. (NYSE:MRK)’s share price shot up 2.2% on Tuesday following a better than expected earnings announcement. The company traded as high as $118.46 and last traded at $115.8650. 25,596,909 shares traded hands during trading, an increase of 90% from the average session volume of 13,455,099 shares. The stock had previously closed at $113.37.

The company reported $2.04 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.03. Merck & Co., Inc. had a return on equity of 44.54% and a net margin of 29.63%.The company had revenue of $16.40 billion for the quarter, compared to analyst estimates of $16.19 billion. During the same quarter in the prior year, the company earned $1.72 earnings per share. Merck & Co., Inc.’s revenue was up 5.0% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Merck & Co., Inc. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Monday, March 16th will be issued a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, March 16th. Merck & Co., Inc.’s dividend payout ratio (DPR) is 44.91%.

Merck & Co., Inc. News Roundup

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Q4 beat — Merck reported Q4 EPS and revenue that topped estimates, driven largely by strong sales of Keytruda and recent product momentum; this supports near-term growth credibility. Merck (MRK) Q4 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Management commentary/earnings call — the earnings call transcript provides detail on pipeline progress and where management expects margin and revenue pressure to land in 2026; useful for gauging whether disappointing guidance is temporary or structural. Merck & Co., Inc. (MRK) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Index/fund positioning — analysis of Merck’s role in S&P 500 funds and broader pharma exposure may influence flows but is less likely to move the stock materially than earnings/guidance. Does Merck & Co. (NYSE:MRK) Maintain Pharma Reach In S&P 500 Fund
• Negative Sentiment: Weak 2026 guidance — Merck guided 2026 revenue to $65.5–$67.0B and adjusted EPS to $5.00–$5.15, both below analyst expectations; management flagged revenue pressure from impending patent expirations (e.g., Januvia) and generic competition. That guidance cut is the primary reason the stock initially sold off. Merck forecasts 2026 sales below estimates on patent losses
• Negative Sentiment: Slower earnings growth expected as Merck increases acquisition and investment spending — coverage highlights that deal activity and near-term margin impacts may slow EPS growth even as the company pursues pipeline and strategic additions. Merck Expects Slower Earnings Growth As It Spends on Acquisitions
• Negative Sentiment: Market reaction and commentary — multiple outlets note the stock dipped after the cautious outlook despite solid Q4 results; analysts and commentators are parsing how much patent losses and 2026 investments will offset Keytruda strength. Merck shares fall as 2026 guidance disappoints despite solid Q4 results

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MRK. Morgan Stanley raised their price objective on shares of Merck & Co., Inc. from $100.00 to $102.00 and gave the stock an “equal weight” rating in a research note on Friday, December 12th. Wolfe Research upgraded Merck & Co., Inc. from a “peer perform” rating to an “outperform” rating and set a $135.00 target price on the stock in a report on Thursday, January 8th. BMO Capital Markets raised Merck & Co., Inc. from a “market perform” rating to an “outperform” rating and boosted their price target for the stock from $82.00 to $130.00 in a report on Thursday, December 18th. Deutsche Bank Aktiengesellschaft upped their price objective on Merck & Co., Inc. from $110.00 to $111.00 and gave the company a “hold” rating in a research report on Tuesday, November 18th. Finally, TD Cowen increased their price objective on Merck & Co., Inc. from $100.00 to $120.00 and gave the company a “hold” rating in a research note on Tuesday, January 20th. Eight analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $114.53.

Institutional Investors Weigh In On Merck & Co., Inc.

Hedge funds have recently made changes to their positions in the business. Darwin Wealth Management LLC grew its holdings in Merck & Co., Inc. by 237.4% in the 3rd quarter. Darwin Wealth Management LLC now owns 307 shares of the company’s stock valued at $26,000 after buying an additional 216 shares during the period. Kilter Group LLC acquired a new stake in shares of Merck & Co., Inc. in the second quarter worth approximately $27,000. Bare Financial Services Inc boosted its position in shares of Merck & Co., Inc. by 51.9% in the second quarter. Bare Financial Services Inc now owns 366 shares of the company’s stock worth $29,000 after acquiring an additional 125 shares during the last quarter. Barnes Dennig Private Wealth Management LLC grew its holdings in Merck & Co., Inc. by 302.3% in the third quarter. Barnes Dennig Private Wealth Management LLC now owns 354 shares of the company’s stock valued at $30,000 after purchasing an additional 266 shares during the period. Finally, Evolution Wealth Management Inc. acquired a new position in Merck & Co., Inc. during the second quarter worth approximately $31,000. Institutional investors and hedge funds own 76.07% of the company’s stock.

Merck & Co., Inc. Stock Up 2.2%

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.66 and a quick ratio of 1.44. The stock has a market cap of $287.58 billion, a price-to-earnings ratio of 15.31, a price-to-earnings-growth ratio of 1.60 and a beta of 0.28. The firm’s 50-day moving average is $105.66 and its 200 day moving average is $92.48.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.