Revenue Growth Remains Solid
MRK grew total revenue to $16.29B in Q1 FY2026, up 4.9% from $15.53B in Q1 FY2025, indicating continued underlying business momentum despite the headline net loss.
Merck & Co., Inc. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: MRK reported Q1 FY2026 revenue of $16.3B (+4.9% YoY), but swung to a net loss of -$4.24B driven by a massive $12.6B R&D expense surge (+247.7% YoY), likely reflecting a large in-process R&D charge from an acquisition, while operating cash flow improved significantly to $3.9B.
Drawn from management commentary in the Q1 2026 10-Q:
MRK grew total revenue to $16.29B in Q1 FY2026, up 4.9% from $15.53B in Q1 FY2025, indicating continued underlying business momentum despite the headline net loss.
R&D expense surged to $12.59B (+247.7% YoY from $3.62B), almost certainly reflecting a large in-process R&D (IPR&D) charge associated with a business acquisition or licensing deal, which caused the company to report a net loss of -$4.24B versus net income of $5.08B in the prior-year period.
Cost of revenue rose 22.7% YoY to $4.20B versus $3.42B, outpacing revenue growth of 4.9% and compressing gross profitability, suggesting product mix shifts or higher manufacturing/royalty costs.
Revenue
$16.29B
++4.87% YoY
EPS (Basic)
$-1.72
-185.57% YoY
Add MRK to your watchlist to get the AI analysis in your inbox within minutes of the 10-Q filing.