AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

See which workplaces made this year's list.

2025_GPTW_BiotechnologyPharmaceuticals_Large_Merck_US1__685d500b023fa8a02634231b_1

Employees say:&nbsp;"Senior leadership at Merck is committed to establishing a healthy work environment, and many mid-level managers set a positive example. I believe most Merck employees genuinely strive to make a meaningful impact, both within the work environment and in patient care. A good example is the various mentorship programs I have attended. Despite mentoring me being outside of their job responsibilities and not accounted for in their annual performance reviews, all my mentors have done their best to support me and provide constructive feedback."

Best Large Workplaces in Biotechnology and Pharmaceuticals

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Fortune Global 500

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 145,000 U.S. employees.

Best Workplaces_New York_Large_2025-Merck_US1__67fd6364bb07cc513ab900de_2

Employees say:"Merck is outstanding at seeing the employee as a "whole person," as a valuable resource to the company and its patients. Over the past several years, I have seen how the company has put concerted effort into ensuring that employees take time away, care for themselves, care for their families, etc. To get the best out of employees, the employees need to BE at their best. And I certainly appreciate how Merck has pivoted and built that flexibility into the rhythms, and now expectations, of employment. It truly is a great place to work. Thank you!"

35 Best Large Workplaces in New York

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The top companies on our list have one thing in common: Staff largely trust leadership to see them as well-rounded people and reward them for a job well done.

Employees say: "I feel this company really invests in their people. I started out 25 years ago on a temporary assignment that was to last four days. As long as you have the drive and determination, your career at this company can make an impact and can grow significantly. They provide many tools and opportunities, but it is up to the employee to leverage them. I have a disabled husband who I have to take care of financially and physically, and this company has always been flexible and supportive, which allows me to maintain a great work-life balance and still efficiently get work done. They also support innovation, and I feel new ideas are encouraged and I have seen impact of change initiatives, by either myself, or that my team have brought up."

Fortune 100 Best Companies to Work For

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

Employees say:"This is more than a company, it is a huge family! Each person, regardless of their role, education, or experience is treated equally importantly. Since our first national meeting, I have repeatedly been acknowledged and never felt unimportant. This work environment is exceptional and each of us strives to work harder and more efficient as we feel appreciated and supported."

Best Large Workplaces for Parents

GPTW_Parents_Large_2024-Merck_US1__20240918135500_1.jpg

Employees say:"Merck is outstanding at seeing the employee as a "whole person," as a valuable resource to the company and its patients. Over the past several years, I have seen how the Company has put concerted effort into ensuring that employees take time away, care for themselves, care for their families, etc. To get the best out of employees, the employees need to BE at their best. And I certainly appreciate how Merck has pivoted and built that flexibility into the rhythms. It truly is a great place to work. "

GPTW BioPharma Large 2024-Merck

Employees say:"The culture of support for the Employee Business Resource Groups creates a physical environment of care, community, and collaboration that fosters trust in both the EBRG teams as well as in the DE&amp;I journey within the greater company culture."

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are insurance and managed care, medical products and facilities, pharmacy services, and pharmaceutical companies.

Fortune Sector Leaders: Health Care

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 140,000 U.S. employees.

GPTW-2024-New-York-Large-Merck

Employees say:"The main thing that drives me is the sense of ethics and always putting patients first, and not profits. This makes me proud to work here and confident that everyone at the company is driven by the same north."

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-Merck

New Jersey–based pharmaceutical company Merck climbed 36 spots from No. 98 on last year’s Best Companies list, with about 75% of the company’s employees worldwide undergoing a pay equity study as of 2021, which grew to 90% in 2022. That 2022 study, by the way, showed that Merck had achieved over 99% pay equity for both women and men and white and non-white employees in the U.S. &nbsp;Merck’s diversity programs have worked to address gender pay disparities and representation of women in the workplace. The company’s board of directors has more gender diversity than the industry norm, consisting of 46% female representation, while women make up 33% of Merck’s executives. Merck’s Women’s Leadership Program and Emerging Women’s Leadership program provide professional development training for women employees.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-Merck

While Merck’s business focus revolves around using science to save lives and improve physical health, the company has made the mental health of its employees a priority as well. 
<ul> 
 	<li>Roughly 4,000 managers have been trained on how to connect their workers with well-being resources and educated on how to respond with compassion toward someone who may be struggling.</li> 
 	<li>Roughly 100 workers have completed Mental Health First Aid training and are available to help colleagues access mental health information and resources. It’s a grassroots project to reduce the stigma and raise awareness of mental health issues.</li> 
 	<li>Lyra, launched in 2021, ensures both employees and their families have quick access to high-quality evidence-based mental health care.</li> 
 	<li>Employees are provided with a membership to relaxation app Calm, as well as a flex day, time off to volunteer, and a generous parental leave program.</li> 
 	<li>“Merck shows that we are people, not just employees, with lives outside of work and honors that and promotes balancing work/home life,” said one worker.</li> 
</ul>

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly 100,000 U.S. employees.

GPTW-New-York-2023-Merck_1000976-5

Employees say: 
 
"The organization operates with integrity on all levels. Merck is mission-driven and highly principled. Management genuinely cares about employees as individuals—promotes work-life balance and health and wellness, and celebrates diversity. My management listens and follows up on issues brought to their attention and consistently works to remove barriers in processes to help support me and my colleagues in my department to be successful in our jobs."

GPTW 2023 best workplaces pharma LARGE

Employees say: 
 
"The people who work here are amazing and inspiring—people push me to better myself and remind me of what is important and why we do what we do!"

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-069-Merck

The pharmaceutical firm that makes commonly used drugs, including HPV vaccine Gardasil, has held strong in its 69th year on the Fortune 500 list. 
<ul> 
 	<li>Merck surpassed expectations in 2022, bringing in $59.3 billion in revenue and $14.5 billion in profit.</li> 
 	<li>In April 2023, Merck announced plans to acquire Prometheus Biosciences for $10.8 billion. It is one of a few deals of its kind, but analysts say it could signal the beginning of a period of intense M&amp;A for biotech companies.</li> 
 	<li>Merck, along with Moderna, is making progress toward a cancer vaccine for melanoma patients. The immunotherapy drug Keytruda, Merck’s top seller, is part of the vaccine and was a strong growth driver.</li> 
 	<li>Sales of the COVID oral antiviral drug Lagevrio reported robust sales in 2022, but the company expects a significant slowdown in 2023.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC 2022 41 Merck

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

The companies on this year's list stand out for celebrating innovation, promoting cooperation, and more.

GPTW New York Large 2022-Merck

Employees say: 
 
“The number of available opportunities/modalities for personal and professional development is truly astounding. Additionally, employees have the opportunity to participate in secondments (away from their hired position) of up to 6 months to work in and learn about another functional area/role. To me, this really emphasizes our company's investment in the PERSON.” 
 
Read the Great Place to Work review .

Great-Places-to-Work-in-Biotechnology-Large-2022-Merck_1000976-3

Employees say: 
 
“The company work culture is very inclusive and compassionate. Everyone is very caring and makes new people feel welcome. It's also very easy to move around departments and working groups. They put a great focus on professional development and networking for everyone.”

Fortune's annual list dedicated to the idea that business is uniquely suited to address society’s biggest challenges.

CTW.1122.Merck Gardasil

Merck’s Gardasil is a potent vaccine against HPV, a sexually transmitted disease that can cause cervical cancer. But until recently, cost and production constraints limited its reach. Merck has now committed more than $1 billion to expand capacity, with a focus on underserved countries. Merck more than doubled global supply of Gardasil between 2017 and 2020 and is on track to do so again by 2023.

Change the World

This year’s Fortune 500 marks the 68th running of the list.

F500-2022-071-Merck

Pharmaceutical company Merck fell six spots on the list in its first year with CEO Robert Davis at the helm. But that modest slide masks a successful year in which profits jumped 85%, to $13 billion. Excluding revenue from Organon, the women’s health company whose spinoff was completed in June 2021, Merck’s sales overall increased 17%, including a 20% gain for the company’s hallmark cancer drug Keytruda and a 44% increase in sales for HPV vaccine Gardasil. Merck also registered nearly $1 billion in sales for molnupiravir, an oral antiviral treatment for COVID that received emergency use authorization from the FDA in December 2021.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-37-Merck

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100 Best companies-100-Merck

New to our list this year, this 130-year-old pharma giant has long devoted itself to the mission: “Save and improve lives.” Though Merck shelved its own vaccine development, President Biden announced in March that the company would help produce J&amp;J’s one-shot COVID vaccine. <a href="https://fortune.com/longform/fortune-500-black-ceos-business-history/">When current CEO Ken Frazier departs</a> at the end of June, CFO Robert Davis will take the reins. Employees say that during a difficult year, it meant a lot that Merck managed to increase benefits to employees. That included the addition of “LifeCare” specialists who can provide help in hiring a nanny or search for virtual tutors to support e-learning.The company has “stepped up,” notes an employee.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-232-Merck

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Merck spent much of 2020 developing and testing two COVID-19 vaccine candidates but abandoned the projects in January. The company said in March that it would support the manufacturing and supply of Johnson &amp; Johnson’s COVID-19 vaccine instead. Merck’s worldwide sales increased 2% to $48 billion last year, led by a 30% increase in revenue ($14.4 billion) from its flagship cancer drug Keytruda. Despite the sales growth, Merck saw a 28% decrease in net income in 2020 compared with the prior year. And the numbers in 2021 aren’t exactly flashing green—at least so far: First-quarter sales were flat, and profit declined because of the continuing effects of the pandemic as well as increased competitive pressures for key Merck products. One more challenge for the venerable drugmaker: In June, longtime CEO Ken Frazier steps down after a stellar decade-long run leading the company. He will hand the reins to CFO Robert Davis.&quot;}" data-sheets-userformat="{&quot;2&quot;:14721,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}">Merck spent much of 2020 developing and testing two COVID-19 vaccine candidates but abandoned the projects in January. The company said in March that it would support the manufacturing and supply of Johnson &amp; Johnson’s COVID-19 vaccine instead. Merck’s worldwide sales increased 2% to $48 billion last year, led by a 30% increase in revenue ($14.4 billion) from its flagship cancer drug Keytruda. Despite the sales growth, Merck saw a 28% decrease in net income in 2020 compared with the prior year. And the numbers in 2021 aren’t exactly flashing green—at least so far: First-quarter sales were flat, and profit declined because of the continuing effects of the pandemic as well as increased competitive pressures for key Merck products. One more challenge for the venerable drugmaker: In June, longtime CEO Ken Frazier steps down after a stellar decade-long run leading the company. He will hand the reins to CFO Robert Davis.

These companies foster supportive cultures, where employees find opportunities for growth with help from their colleagues.

Best Large Workplaces New York 2021-Merck

Employees say: 
 
“Sense of approachability to direct management and genuine concern they show for both work and family life. The encouragement to learn and develop talents and abilities is a consistent focus.”

The best U.S. biotechnology and pharmaceutical companies, as ranked by their employees in the past year.

Best Workplaces Biotech Pharma 2021-Merck & Co

Employees say:  
 
“Benefits increased this year in response to the pandemic and I feel incredibly supported - child care, elder care, mental health support and more.” 
 
Read Great Place to Work review .

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-65-Merck

We surveyed tens of thousands of employees to create this list of millennials’ favorite workplaces.

Best Large Workplaces Millennials 2021-Merck

Employees say: 
 
“I appreciate the co-learning attitude within this company. Even though I might be younger and newer, I have the ability to make an impact and have a voice within the group.”

100 Best Large Workplaces for Millennials

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-Featured Image-Logo-2020

The pharma giant had a banner year in 2019, climbing 29 slots on the Global 500. Revenue rose almost 11%, to $46.8 billion, while profits leaped 58%, to $9.8 billion. Blockbuster cancer drug Keytruda, as well as an expanded line of animal medicines, have helped power Merck’s growth—though its share price has not seen as much of a lift as some competitors'. In the race to find a vaccine for COVID-19, Merck has adopted a slow pace compared to others in the industry. Rather than tout the company’s progress, CEO Kenneth Frazier has instead criticized industry “hype” and has warned that the process for developing an effective vaccine could take years

This year's Fortune 500 marks the 66th running of the list.

F500-2020-069-Merck

The pharma giant had a banner year in 2019, climbing seven slots on the Fortune 500. Revenue rose almost 11%, to $46.8 billion, while profits leaped 58%, to $9.8 billion. Blockbuster cancer drug Keytruda, as well as an expanded line of animal medicines, have helped power Merck’s growth—though its share price has not seen as much of a lift as some competitors'. More recently, Merck has been notably quiet in medical chatter about the novel coronavirus. But executives on a late April earnings call announced that the company has teams scanning its portfolio of antiviral candidates and vaccine assets for potential treatments.

As we face unprecedented collective challenges, cooperation has become a business superpower.

53.CTW20.Merck

Merck has doubled down on “impact” investing—taking stakes in smaller companies that aim to generate a measurable social good. Its portfolio currently commits about $39 million to entities working on projects including diagnostics, drug and vaccine R&amp;D, and health infrastructure. It’s a future play with present benefits: Merck estimates more than 9 million people benefited from its impact portfolio in 2019.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Change The World

Impact Segment

Sector

Best Workplaces For Parents

Founded

Sites

Industry Vertical

Best Companies

Rank last year

Years on list

U.S. employees

U.S. job openings

Year founded

Benefits

Subsidized childcare

Compressed work weeks

Option to work remotely

Minimum requirement in-office attendance (days per week)

Mental health coverage

Free mental health sessions (per year)

Free backup childcare time off (days)

Maximum $ amount covered for fertility services

Fully paid maternal leave (days)

Fully paid paternal leave (days)

Fully paid adoptive leave (days)

Maternal leave in addition to regular time off (days)

Paid days off for volunteering

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Best Workplaces In New York

Best Workplaces In Biopharma

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

New Jersey–based Merck was founded in 1891 as the American affiliate of a German parent. Today, as a stand-alone company, it is one of the world’s biggest pharmas by revenue. It has produced numerous blockbuster medications, including the cancer treatment branded as Keytruda, which was the world’s bestselling drug in 2023, earning Merck $25 billion that year. Other high-profile medications have included diabetes treatments and anti-HIV drugs. Merck produces vaccines and has a large animal medicine business as well as a services segment whose offerings include analytics and clinical services.

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Merck (U.S.) (MRK): Company Profile, Stock Price, News, Rankings

legacy

Merck (U.S.)

merck (u.s.)

Thank you for standing by. Welcome to the Merck & Co., Inc., Rahway, New Jersey, USA, Q4 sales and earnings conference call. At this time, all participants are in a listen-only mode until the question-and-answer session of today's conference. At that time, if you'd like to ask a question, you may press star one on your phone and record your name at the prompt. This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to Mr. Peter Dannenbaum, Senior Vice President, Investor Relations. Sir, you may begin.

Thank you, Shirley, and good morning, everyone. Welcome to the Q4 2025 conference call for Merck & Co., Inc., Rahway, New Jersey, USA. Speaking on today's call will be Rob Davis, Chairman and Chief Executive Officer, Caroline Litchfield, Chief Financial Officer, and Dr. Dean Li, President of Research Labs. Before we get started, I'd like to point out that we have items in our GAAP results, such as acquisition-related charges, restructuring costs, and certain other items that we have excluded from our non-GAAP results. There is a reconciliation in our press release. I will also remind you that some of the statements that we make today may be considered forward-looking statements within the meaning of the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Such statements are made based on the current beliefs of our company's management and are subject to significant risks and uncertainties. If our underlying assumptions prove inaccurate or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Our SEC filings, including Item 1A in the 2024 10-K, identify certain risk factors and cautionary statements that could cause the company's actual results to differ materially from those projected in any of our forward-looking statements made this morning. Merck & Company Incorporated, Rahway, New Jersey, USA, undertakes no obligation to publicly update any forward-looking statements. During today's call, a slide presentation will accompany our speakers' prepared remarks. These slides, along with the earnings release, today's prepared remarks, and our SEC filings, are all posted to the investor relations section of our company's website. With that, I'd like to turn the call to Rob.

Thanks, Peter. Good morning, and thank you for joining today's call. Our company's purpose, to save and improve lives, guides everything we do. In 2025, we advanced key programs across all phases of development, furthering our mission to deliver transformative medicines and vaccines that will improve health outcomes for patients around the world. I'm very proud of the significant progress we are making. As we look ahead, we'll remain intently focused on bringing forward breakthrough science and innovation, which is the foundation for creating sustainable long-term value for both patients and shareholders. The transformation of our portfolio is well underway, and momentum is building as we continue to execute on our strategy. In 2025, our business benefited from successful new product launches, the advancement of important clinical programs, and the expansion of our respiratory and infectious disease portfolios through the acquisitions of Verona Pharma and Cidara Therapeutics.

As a result of this progress, we now have line of sight to over $70 billion of potential commercial opportunity by the mid-2030s, $20 billion more than just a year ago and more than double consensus 2028 peak Keytruda revenue of $35 billion. While we still have more to do, this meaningful progress further bolsters my already high confidence in our ability to deliver sustainable growth post the Keytruda LOE period. Now, turning to our results and initial outlook for 2026. Growth in 2025 reflects demand for our innovative portfolio, including for Keytruda, which continues to benefit more patients with cancer globally, increasing contributions from new launches in cardiometabolic and respiratory, as well as vaccines, and strong performance of animal health.

We're well-positioned to achieve commercial success across key products in 2026, while we make important investments behind our new product launches and expanded pipeline, which Caroline will speak to momentarily. Our research colleagues continue to achieve remarkable progress across our broad and deep pipeline. Focusing on a few key events from the Q4, in cardiometabolic and respiratory, at AHA, we presented phase III results for Enlicitide that underscore the practice-changing potential of an oral PCSK9 inhibitor. Cardiovascular disease is the leading cause of death globally, and we look forward to bringing a potential new option to help address the CV epidemic. For Winrevair, we announced phase II top-line findings from the Cadence trial that are supportive of its continued development in a different type of pulmonary hypertension.

Building on recent momentum in HIV, we shared positive top-line results for Islatravir in combination with Doravirine for treatment-naive adults living with HIV. Finally, we're pleased that both Enlicitide and SAC-TMT, our investigational Trop-2-directed antibody-drug conjugate, were granted Commissioner's National Priority Vouchers by the FDA, which may expedite review of these important investigational candidates after applications are filed. We recently completed the acquisition of Cidara, which complements our portfolio and builds on our long legacy in combating infectious diseases. MK-1406, formerly CD388, is a potentially first-in-class, long-acting antiviral candidate designed to help prevent influenza infection in individuals at higher risk of developing serious complications. There is a substantial unmet need for influenza prevention in a large at-risk population, and phase II results were very promising.

We believe MK-1406 has greater than $5 billion in revenue potential and can be a meaningful driver of growth later this decade and through the next. We're excited to welcome the Cidara team to our company and look forward to advancing this novel preventative antiviral agent. Today, our business is anchored by an important set of commercial products that address critical unmet needs. We're also executing on the transformation of our portfolio, with initial launches from over 20 potential new growth drivers that have the promise to advance the practice of medicine and change patient lives. 10 of these programs could be substantially clinically de-risked over the next two years and represent the majority of our $70 billion of non-risk adjusted commercial opportunity by the mid-2030s.

Our long-term outlook is further bolstered by the strong growth we expect in our animal health business, by the many early-phase programs that will enter phase II in the near term, and through additional potential science-led, disciplined and value-enhancing business development. We're entering a particularly robust period of first-time phase III data readouts from novel candidates. In 2026, these include Islatravir, combined with Lenacapavir, potentially the first once-weekly oral treatment regimen for people living with HIV. MK-3000, potentially the first new mechanism of action in 2 decades for patients with certain retinal diseases. And Tulisokibart, where we expect to see phase III results in ulcerative colitis, as well as phase II data in other autoimmune diseases. There is an even richer array of expected readouts in 2027, including phase III results for sac-TMT, which we believe is a differentiated Trop-2 ADC.

For I-DXd, our B7-H3 antibody-drug conjugate being studied in small cell lung cancer and other tumor types, for MK-1406, as well as for a number of other important programs. In summary, we're successfully executing multiple product launches, making significant clinical advancements and augmenting our pipeline with strategic business development. We're also making the necessary investments that will sustain our success over the long term. Our progress and momentum positions us to continue delivering on our purpose for patients and create durable value for shareholders. I want to recognize and thank our global teams for their commitment. While there is more to do, the actions taken, the progress we've made, and our continued disciplined execution provide me with strong confidence that we're well-positioned for our next chapter of success. With that, I'll turn the call over to Caroline.

Thank you, Rob. Good morning. As Rob noted, in 2025, we made meaningful progress in benefiting patients and customers around the world with our portfolio of innovative medicines and vaccines. Our business delivered growth, driven by continued strength in oncology and animal health, as well as increasing contributions from new product launches. These results demonstrate the enduring strength of our business and give us confidence in our outlook as we enter a period with many new launches. Our commercial and operational execution enable us to invest in discovering, developing and launching the next generation of innovations, which will drive long-term value for patients, customers and shareholders. Now turning to our Q4 results. Total company revenues were $16.4 billion, an increase of 5%, or 4%, excluding the impact of foreign exchange. The following revenue comments will be on an ex-exchange basis.

In oncology, sales of the Keytruda family of products, which includes Keytruda and Keytruda QLEX, increased 5% to $8.4 billion, with global growth driven by robust uptake in earlier stage cancers and strong demand from metastatic indications. Utilization in tumors that primarily affect women, including breast, cervical, and endometrial cancers, continues to be a key contributor to growth. In addition, we saw increased use of Keytruda in combination with Padcev in locally advanced or metastatic urothelial cancer. In the US, growth was negatively impacted by approximately $200 million due to the timing of purchases. We are pleased with the positive provider feedback following the recent launch of Keytruda QLEX. As expected, sales in the quarter were $35 million.

We look forward to having a greater impact on patients and healthcare systems following implementation of a permanent J-code in the U.S., which we continue to expect to occur in the beginning of April. Our broader oncology portfolio achieved another quarter of strong growth. Notably, Welireg sales increased 37% to $220 million, predominantly driven by increased use in certain patients with previously treated advanced renal cell carcinoma in the U.S., as well as continued uptake from ongoing launches in certain international markets. We look forward to potentially reaching more patients with renal cell carcinoma following positive data from the LITESPARK-011 and LITESPARK-022 studies. In vaccines, Gardasil sales were $1 billion, a decrease of 35%, driven by lower demand in China and Japan. Other international markets grew 8%, benefiting from the timing of purchases.

In the U.S., sales grew 7%, largely due to price. In pneumococcal, the Capvaxive launch continues to progress well, with sales of $279 million, driven by demand from both retail pharmacies and non-retail customers, including uptake from increased seasonal immunization activity in the U.S. In RSV, Enflonsia sales were $21 million. Initial uptake has been constrained by a lower than expected infant immunization rate, coupled with high levels of total RSV monoclonal antibody inventory in the market. In cardiometabolic and respiratory, Winrevair continues to have a positive impact for patients with pulmonary arterial hypertension. Global sales were $467 million, a reflection of the continued strong demand for this important treatment. In the U.S., more than 1,500 new patients received a prescription, and over 27,000 total prescriptions were dispensed.

We also saw an increase in the proportion of patients whose background therapies do not include prostacyclin. Outside the U.S., we continue to progress with securing approvals and reimbursement. We are excited to build upon the successful U.S. launch of Ohtuvayre, a maintenance treatment for adults with COPD, with a novel mechanism of action. In the quarter, sales were $178 million, reflecting revenues following the acquisition of Verona on October the seventh. We delivered strong growth in new patient starts and total patients treated. We also saw physicians prescribe Ohtuvayre to more of their patients and an increase in the total number of prescribing physicians. As a reminder, we expect seasonality in the early part of the year as Medicare deductibles are reset. We are making investments to maximize the ongoing launch in the U.S. and look forward to benefiting more adult patients with COPD.

Our animal health business delivered another quarter of strong growth, with sales increasing 6%. Livestock sales grew 9%, driven by higher demand across all species. Companion animal sales were flat, as growth from new product launches was offset by a reduction in vet visits. I will now walk you through the remainder of our P&L, and my comments will be on a non-GAAP basis. Gross margin was 79.7%, a decrease of 1.1 percentage points due to higher inventory reserves, partially offset by favorable product mix. Operating expenses decreased to $6.8 billion. A charge of $150 million related to an agreement with Dr. Falk Pharma to acquire sole global rights to MK-8690 was lower than the $700 million in business development charges a year ago.

Excluding these charges, operating expenses were flat, reflecting an increase in investment in support of our innovative pipeline and key growth drivers, offset by the benefits of our multi-year optimization initiative. Other expense was $226 million. Our tax rate was 15.4%. Taken together, earnings per share were $2.04. Now turning to our 2026 non-GAAP guidance. We expect revenue to be between $65.5 billion and $67 billion, representing growth of 1%-3%, including a positive impact from foreign exchange of approximately one percentage point using mid-January rates. Our gross margin assumption is approximately 82%. Operating expenses are assumed to be between $35.9 billion and $36.9 billion, which includes a one-time charge of approximately $9 billion related to the acquisition of Cidara.

As a reminder, our guidance does not assume additional significant potential business development transactions. Other expense of approximately $1.3 billion includes financing costs for Cidara and Verona. We assume a full-year tax rate between 23.5% and 24.5%, which reflects the non-tax-deductible one-time charge for Cidara. We assume approximately 2.48 billion shares outstanding. Taken together, we expect EPS of $5-$5.15, with a midpoint of $5.08, including a positive impact from foreign exchange of approximately $0.10 using mid-January rates. Excluding approximately $3.65 per share related to the upfront charge for the acquisition of Cidara, as well as $0.30 per share of ongoing costs to advance MK-1406 and finance the transaction, our midpoint would be $9.03.

As you consider your models, there are a few items to keep in mind. We expect to deliver growth in 2026, driven by increasing contributions from our new launches, as well as continued strength in oncology and animal health, despite a headwind of approximately $2.5 billion from generic competition, IRA price setting, and the restructured agreement for Koselugo. Generic competition primarily impacts the Januvia family of products, Bridion, and Dificid. We also expect significantly lower sales of Lagevrio due to continued soft demand. Now turning to capital allocation, where our strategy remains unchanged. We will prioritize investments in our business to drive near and long-term growth, including new product launches and our robust pipeline. We remain committed to the dividend, with the goal of increasing it over time. Business development remains a high priority. We are well-positioned to pursue additional transactions when science and value align.

Our guidance assumes approximately $3 billion of share repurchases, and we remain committed to not having excess cash build on the balance sheet. To conclude, we enter 2026 with confidence in the outlook for our business, driven by global demand for our innovative medicines and vaccines, including the exciting progress of our many launches and upcoming clinical milestones from our promising pipeline. We maintain our long-standing commitment to bringing forward medically significant innovations that will enable us to deliver value to patients, customers, and shareholders well into the future. With that, I'd now like to turn the call over to Dean.

Merck (U.S.) (MRK) Q4 2025 Earnings Call Transcript

Company Participants