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

Merck & Co., Inc. (NYSE:MRK) shares traded up 2.2% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $118.46 and last traded at $115.8650. 25,596,909 shares were traded during mid-day 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 business had revenue of $16.40 billion for the quarter, compared to analysts’ expectations of $16.19 billion. During the same period last year, the business earned $1.72 EPS. The business’s revenue was up 5.0% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Merck & Co., Inc. Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Monday, March 16th will be given a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Monday, March 16th. Merck & Co., Inc.’s dividend payout ratio is presently 44.91%.

Merck & Co., Inc. News Roundup

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

• Positive Sentiment: Q4 results beat consensus — Merck reported stronger-than-expected Q4 revenue and EPS, driven in large part by continued demand for cancer immunotherapy Keytruda; the quarter and earnings transcript highlight solid near-term operating momentum. Merck Q4 2025 Earnings Call Transcript
• Positive Sentiment: Pipeline and strategic investments emphasized — Management reiterated investment in oncology and a broad pipeline, and said it will pursue acquisitions and R&D to offset upcoming product challenges, which supports longer-term growth hopes. Business Wire — Q4 Results & Pipeline
• Neutral Sentiment: 2026 guidance provided — Merck set FY‑2026 adjusted EPS of $5.00–$5.15 and revenue of $65.5B–$67.0B, giving investors concrete targets to model, even though those ranges were lighter than some street forecasts. MarketWatch — 2026 Outlook
• Neutral Sentiment: Index/fund positioning discussion — Commentary on Merck’s standing in S&P/sector funds may affect passive flows but is not an immediate earnings driver. Kalkine Media — S&P Fund Positioning
• Negative Sentiment: Guidance missed Wall Street’s expectations — The FY‑2026 revenue and EPS ranges were below analysts’ consensus, prompting concern about near-term growth and triggering an initial sell-off. Reuters — 2026 Sales Forecast Below Estimates
• Negative Sentiment: Patent cliffs and generic competition risk — Management warned that patent expirations (notably Januvia) and other losses of exclusivity will pressure 2026 sales more than some analysts expected, raising near-term downside risk to revenue and margins. WSJ — Patent Losses and Slower Earnings Growth

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MRK. Deutsche Bank Aktiengesellschaft increased their price target 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. Citigroup boosted their price target on shares of Merck & Co., Inc. from $110.00 to $115.00 and gave the stock a “neutral” rating in a report on Tuesday, January 27th. Weiss Ratings restated a “hold (c)” rating on shares of Merck & Co., Inc. in a report on Monday, December 29th. Zacks Research downgraded Merck & Co., Inc. from a “hold” rating to a “strong sell” rating in a research note on Friday, January 9th. Finally, Wall Street Zen upgraded Merck & Co., Inc. from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Eight research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Merck & Co., Inc. currently has an average rating of “Hold” and a consensus price target of $114.53.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Ethic Inc. lifted its holdings in shares of Merck & Co., Inc. by 9.3% in the fourth quarter. Ethic Inc. now owns 318,145 shares of the company’s stock worth $33,488,000 after buying an additional 27,079 shares in the last quarter. Ballentine Partners LLC increased its holdings in Merck & Co., Inc. by 6.3% during the 4th quarter. Ballentine Partners LLC now owns 48,171 shares of the company’s stock worth $5,070,000 after acquiring an additional 2,875 shares during the period. Cheviot Value Management LLC lifted its stake in Merck & Co., Inc. by 2.7% in the 4th quarter. Cheviot Value Management LLC now owns 169,736 shares of the company’s stock worth $18,145,000 after purchasing an additional 4,424 shares in the last quarter. Buck Wealth Strategies LLC boosted its holdings in Merck & Co., Inc. by 5.0% in the 4th quarter. Buck Wealth Strategies LLC now owns 135,392 shares of the company’s stock valued at $14,251,000 after purchasing an additional 6,431 shares during the period. Finally, Lighthouse Financial Services Inc. ADV purchased a new position in shares of Merck & Co., Inc. during the 4th quarter valued at $1,024,000. Institutional investors own 76.07% of the company’s stock.

Merck & Co., Inc. Price Performance

The stock has a market capitalization of $287.58 billion, a PE ratio of 15.31, a price-to-earnings-growth ratio of 1.55 and a beta of 0.28. The business’s 50-day moving average price is $105.46 and its 200 day moving average price is $92.23. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.66.

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.