Merck beats quarterly estimates, raises outlook as injectable Keytruda gains

Merck beat third-quarter earnings expectations and raised its full-year profit forecast on Thursday, October 29, as its cancer immunotherapy Keytruda delivered stronger-than-expected sales. The newer under-the-skin formulation, Keytruda Qlex, contributed $830 million, underscoring its growing role within the company’s largest drug franchise.

Quarterly revenue reached $18.1 billion, compared with analysts’ average forecast of $17.3 billion, according to LSEG figures reported by Reuters. Adjusted earnings of $2.49 a share exceeded expectations of $2.08, while shares rose nearly 3% in premarket trading.

Combined Keytruda and Keytruda Qlex sales increased 6% to $8.6 billion, above the $8 billion analysts had anticipated. Merck attributed growth partly to uptake in earlier-stage cancers, including breast, cervical, head and neck, and bladder cancer, alongside demand in metastatic disease.

The injectable formulation’s sales increased from $463 million in the second quarter, according to Merck’s financial releases. That progression makes Qlex an increasingly significant contributor, though the combined franchise figures remain important for assessing whether the newer version is expanding total revenue rather than simply shifting sales between formulations.

Merck also cautioned that purchasing timing helped the quarter, benefiting pharmaceutical growth by approximately $550 million. That distinction matters when interpreting the earnings beat: orders brought forward can strengthen one reporting period without representing an equivalent increase in underlying patient demand.

Gardasil and Gardasil 9 generated nearly $2 billion in sales, up 14%. Merck attributed the increase primarily to favorable U.S. public-sector purchasing patterns and higher net pricing, providing another source of growth beyond its oncology business.

The latest results follow an acquisition-heavy first half that affected Merck’s reported earnings. In its second-quarter release, the company disclosed a $2.31-a-share charge for acquiring Terns Pharmaceuticals, while its annual forecast also incorporated a separate charge associated with Cidara Therapeutics. Those costs help explain why quarterly adjusted earnings and the full-year profit forecast differ so sharply.

Merck now expects annual adjusted earnings of $2.77 to $2.82 a share, compared with its previous range of $2.66 to $2.76. It also lifted the lower end of its revenue forecast to $66.8 billion from $66.3 billion, leaving the upper end unchanged at $67.3 billion.

The company’s next scheduled opportunity to explain those assumptions is its earnings webcast at 9 a.m. Eastern time on Thursday. Its published investor calendar lists the fourth-quarter earnings call for February 2, 2027, when the next quarterly update will provide a clearer view of whether Qlex’s momentum and the broader sales gains have continued.