Merck & Co., Inc. (MRK) Stock: Q3 Profit Jumps 83% as Oncology and Animal Health Drive Growth

TLDR

• Merck’s Q3 profit rose to $5.78 billion, up from $3.16 billion a year ago.
• Adjusted EPS of $2.58 topped Wall Street’s estimate of $2.35.
• Total sales increased 4% to $17.3 billion, driven by KEYTRUDA and animal health products.
• KEYTRUDA sales grew 10% to $8.1 billion, while Gardasil declined 24%.
• Merck reaffirmed 2025 guidance, projecting up to $65 billion in annual revenue.

Merck & Co., Inc. (NYSE: MRK) closed at $86.58 on October 29, 2025, before releasing its third-quarter results that surpassed analysts’ expectations.

Merck & Co., Inc., MRK

The pharmaceutical company reported significant profit growth and reaffirmed its full-year outlook, highlighting strong sales in oncology and animal health divisions.

Robust Third-Quarter Results

Merck reported a net income of $5.785 billion, or $2.32 per share, compared to $3.157 billion, or $1.24 per share, in the same period last year. On an adjusted basis, the company earned $6.448 billion or $2.58 per share, topping consensus estimates of $2.35 per share.

Revenue grew 3.7% year-over-year to $17.276 billion, up from $16.657 billion in Q3 2024. Excluding foreign exchange impacts, sales rose 3%. This solid performance was driven by key franchises, despite weaker vaccine sales.

Key Product Performance

The company’s flagship cancer treatment, KEYTRUDA, generated $8.1 billion in sales, marking a 10% rise. Excluding currency effects, the growth stood at 8%. WINREVAIR reported $360 million in revenue, soaring 141% year-over-year, while CAPVAXIVE brought in $244 million.

In contrast, Gardasil/Gardasil 9 vaccine sales declined 24% to $1.7 billion, primarily due to changing market dynamics. However, Merck’s Animal Health division offset some of this weakness, recording $1.6 billion in sales, a 9% increase from the prior year.

Pipeline Milestones and Strategic Moves

During the quarter, Merck achieved key milestones, including FDA approval of KEYTRUDA QLEX for subcutaneous use across all solid tumor indications. The company also presented new research across over 20 cancer types at the ESMO Congress 2025, including positive survival data from pivotal trials.

Merck completed its acquisition of Verona Pharma, gaining access to OHTUVAYRE, a first-in-class treatment for COPD. It also announced positive topline results from the Phase 3 CORALreef Lipids trial for treating adults with hypercholesterolemia.

Outlook for 2025

Merck reaffirmed its full-year 2025 guidance, expecting worldwide sales between $64.5 billion and $65.0 billion and adjusted EPS between $8.93 and $8.98. CEO Robert M. Davis emphasized the company’s continued focus on innovation, pipeline investments, and strategic acquisitions to sustain long-term growth.

Conclusion

Merck’s Q3 2025 performance underscored its strength in oncology and animal health, offsetting declines in vaccine sales. With consistent execution on strategic goals and a robust late-stage pipeline, the company appears well-positioned for future growth and value creation for shareholders.

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