Merck Q2 Revenue Tops Estimates, Acquisition Charges Drive Adjusted Loss and EPS Guidance Cut

Merck & Co. (MRK) reported second-quarter 2026 revenue of $16.61 billion, up 5.1% year over year and above the $16.37 billion analysts expected . On an adjusted basis the company posted a loss of $0.13 per share, narrower than the $0.27 per-share loss Wall Street had modeled, so the reported "beat" reflects a smaller-than-feared loss rather than a return to profit .

The adjusted loss stems from one-time charges tied to two recently closed acquisitions: a $2.31-per-share charge related to Terns Pharmaceuticals, whose lead asset is an oral CML oncology candidate, and a $3.62-per-share charge related to Cidara Therapeutics, maker of a long-acting antiviral for influenza prevention . Stripping out those deal costs, underlying commercial performance was stronger than the headline loss suggests.

Alongside the print, Merck cut its full-year 2026 adjusted EPS guidance to $2.660-$2.760, down from a prior $5.04-$5.16 range, a reduction of nearly 50% driven by the same acquisition charges . At the same time, the company raised its FY2026 revenue outlook to $66.3-$67.3 billion from $65.8-$67.0 billion, above the roughly $66.8 billion analyst consensus .

The divergence between a slashed profit outlook and a raised revenue outlook suggests Merck views the Terns and Cidara charges as non-recurring, not a sign of weakening demand. Investors may want to track how quickly the acquired pipelines progress, since the near-term earnings drag will need to be offset by future contributions to justify the deal costs.

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