Earnings Call
Apr 30, 2026
Q1 FY2026
EPS Estimate
-1.47
EPS Actual
-1.28
Post-Earnings Close
$109.18
Earnings Reaction
-1.6%
Merck's first quarter 2026 results were shaped by a $9 billion onetime in-process R&D charge tied to the acquisition of Cidara Therapeutics, which drove a reported non-GAAP EPS loss of $1.28, a figure that obscures what was otherwise a solid operational quarter. Stripping out the $3.62 per share Cidara impact, the underlying business performed well: total revenues reached $16.3 billion, up 5% year-over-year (3% ex-FX), with KEYTRUDA and the broader oncology franchise continuing to carry the load. The KEYTRUDA family, now including the recently launched subcutaneous formulation KEYTRUDA QLEX, generated $8 billion in sales, up 8% ex-FX, with management flagging approximately $250 million in U.S. timing benefits from wholesaler purchases that will create a corresponding third-quarter headwind. KEYTRUDA QLEX contributed $128 million in its first full quarter of commercial availability, and the receipt of a permanent J-code on April 1 should meaningfully improve reimbursement dynamics going forward.
Report generated on May 4, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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