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.
Keytruda sales reached $8.60 billion for the quarter, above the $7.73 billion analysts expected, according to StreetAccount. Qlex contributed $830 million, the highest quarterly total since its 2025 launch. Analysts had expected $649 million.
Merck now expects 2026 adjusted earnings of $2.77 to $2.82 per share, up from $2.66 to $2.76. The new range includes a one-time charge of $400 million, or 12 cents per share, tied to its licensing agreement with the Chinese cancer drugmaker SciBrunch. The company 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.
Merck reported net income of $5.07 billion, or $2.04 per share, compared with $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% to $18.09 billion.
Other products also beat estimates. Winrevair, which treats a rare, deadly lung condition, brought in $694 million, up 93% from a year earlier and above the $645 million analysts expected. Gardasil generated about $2 billion, above the $1.76 billion expected, due to higher U.S. demand. Animal health sales of $1.68 billion came in slightly below estimates.
According to the report, Merck has been pursuing a series of deals to offset generic competition for Keytruda after key patents begin expiring in 2028. The company is positioning Qlex, an under-the-skin injection, as a central part of that effort by moving patients from the original intravenous version.