Merck Slashes 2026 EPS Guidance by Nearly 50% on Terns Charges
MRK sits 66% above its 52-week low of $77.58.
Summary
Merck cut its 2026 adjusted EPS guidance to $2.66-$2.76 from $5.04-$5.16, a nearly 50% reduction driven by $2.43 per share in charges tied to the Terns acquisition. The company simultaneously raised its full-year revenue outlook to $66.3B-$67.3B, reflecting strong underlying demand, and reported Q2 revenue of $16.61B, beating estimates. The stock edged higher, suggesting the market had already priced in the acquisition-related charges. This follows the earlier Reuters report on the Q2 beat, but the magnitude of the EPS cut is a stark new detail. Keytruda sales grew 5% to $8.37B, and new launches like Winrevair surged 75%, providing some offset. The guidance cut is severe, but the revenue raise and pipeline momentum may cushion the blow.
At the time of this announcement, MRK was trading at $128.71 on NYSE in the Life Sciences sector, with a market capitalization of approximately $317.9B. The 52-week trading range was $77.58 to $135.05. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.