Merck & Company, Inc. · NYSE:MRK
Merck & — Q3 2026 Earnings Presentation
28 slides from Merck &'s earnings presentation, Oct 29, 2026
Slide 1: Third-Quarter 2026 Sales and Earnings
Third-Quarter 2026 Sales and Earnings Merck & Co., Inc., Rahway, N.J., USA October 29, 2026
Slide 2: Agenda
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer Agenda Agenda Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories Question
Slide 3: Forward-looking statement of Merck & Co., Inc.
Forward-looking statement of Merck & Co., Inc., Rahway, N.J., USA This presentation of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These state
Slide 4: Strategy and Business Update
Strategy and Business Update Robert M. Davis Chairman and Chief Executive Officer 4
Slide 5: Q3 Worldwide Sales $18.1B and clinical and regulatory progress
Achieved significant clinical and regulatory progress, including: Q3 Worldwide Sales $18.1B Oncology • Presented positive pivotal data at ESMO from multiple novel candidates and broad oncology portfolio, including sacituzumab tirumotecan and intismeran autogene1 +5% nominal Ophthalmology +4% ex-exch
Slide 6: Broadening pipeline with >20 current and future growth drivers
Successfully executing on strategy to broaden and diversify pipeline with >20 current and future potential growth drivers Approved Future potential growth drivers1 Oncology Infectious Disease sacituzumab tirumotecan calderasib islatravir / lenacapavir3 TROP2 ADC KRAS G12C inhibitor NRTI / capsid inh
Slide 7: Financial Results and Outlook
Financial Results and Outlook Caroline Litchfield Executive Vice President and Chief Financial Officer 7
Slide 8: Q3 growth across human and animal health
Q3 growth across human and animal health with increasing contributions from new products $2.2B Human Health $16.3B +4% growth WORLDWIDE SALES1 +4% ex-exchange $0.8B $18.1B +5% nominal Animal Health +4% ex-exchange $1.7B +4% growth 3Q25 Launch product revenue2 3Q26 +3% ex-exchange OHTUVAYRE sales rep
Slide 9: Oncology: KEYTRUDA continues to benefit patients and drive growth
Oncology: KEYTRUDA continues to benefit patients and drive growth KEYTRUDA family1 sales of $8.6B increased 6% driven by strong uptake in earlier-stage cancers and continued robust demand from metastatic indications $8.6B ‒ Growth driven by usage in tumors $8.1B +6% predominantly affecting women, in
Slide 10: Oncology: Continued impact across broad portfolio
Oncology: Continued impact for patients across broad portfolio $307M WELIREG sales of $307M grew 58% driven by continued higher demand in the U.S. and launch +58% $196M uptake in international markets $139M +41% +157% Lynparza1 alliance revenue of $352M decreased 7% primarily due to lower net pricin
Slide 11: Vaccines & Infectious Diseases: Impacting lives globally
Vaccines & Infectious Diseases: Impacting lives globally $2.3B GARDASIL sales of $2.0B grew 14% driven by a $2.0B -10% $1.7B significant CDC purchase and higher price in the +14% U.S. -25% CAPVAXIVE1 sales of $263M grew 7% driven by ongoing launches in certain international markets 3Q24 3Q25 3Q26 an
Slide 12: Cardiometabolic & Respiratory: Driving growth with ongoing launches
Cardiometabolic & Respiratory: Driving growth and continuing to benefit patients with successful ongoing launches WINREVAIR sales of $694M grew 94% driven by continued growth in new patient starts and total $694M prescriptions, as well as a benefit from channel inventory +94% ‒ In the U.S., ~1,600 n
Slide 13: Animal Health: Solid growth driven by companion animal and livestock
Animal Health: Solid growth driven by companion animal and livestock Animal Health sales increased 3% to $1.7B ‒ Companion Animal sales grew 6% driven by new Animal Health product launches ‒ Livestock sales grew 2% driven by higher demand for poultry products $1.7B $1.6B +3% +7% $1.5B +11%1 3Q24 3Q2
Slide 14: Q3 2026 non-GAAP financial results summary
Q3 2026 non-GAAP financial results summary1 $ in billions, except EPS amounts Change Q3 2026 Q3 2025 Change Ex-FX Sales $18.1 $17.3 +5% +4% Non-GAAP Gross 81.4% 81.9% -0.5pts -0.6 pts Margin Non-GAAP Operating $7.4 $6.6 12% 12% Expenses2 Non-GAAP Tax Rate 10.9% 13.4% -2.5pts N/A Non-GAAP EPS2,3 $2.4
Slide 15: Updated 2026 financial outlook
Updated 2026 financial outlook Prior Guidance Updated Guidance Key Assumptions • Assumes ~1 percentage point positive impact from FX Revenue $66.3B to $67.3B $66.8B to $67.3B • Now implies +3% to +4% nominal (+2% to +3% ex-FX) Non-GAAP ~81.0% ~81.0% Gross Margin Rate Non-GAAP • Now includes one-time
Slide 16: Key modeling considerations
Key modeling considerations U.S. Purchase Timing BRIDION • 3Q26 benefitted from ~$550M of favorable • Experiencing competition from multiple generics purchase timing • Expect KEYTRUDA and WINREVAIR benefit to Operating Expense fully unwind in 4Q26, and majority of vaccines • Anticipate underlying op
Slide 17: Remain committed to balanced capital allocation strategy
Remain committed to balanced capital allocation strategy 3Q Spend ($ in billions)1 Capital allocation order of priority $4.0 Augmented our pipeline with value-enhancing business development while investing $2.1 in our pipeline and business as well as returning cash to shareholders $1.0 $0.7 $0.7 Aft
Slide 18: Research Update
Research Update Dr. Dean Y. Li Executive Vice President and President, Research Laboratories 18
Slide 19: Meaningful progress across innovative oncology pipeline and portfolio
Meaningful progress across innovative oncology pipeline and portfolio ESMO data highlights Recent regulatory milestones • TroFuse-005: sac-TMT the first and only TROP2 ADC to • Subcutaneous pembrolizumab and improve OS and PFS in certain patients with advanced berahyaluronidase alfa approved by endo
Slide 20: Expanding impact of WINREVAIR in pulmonary hypertension
Expanding impact of WINREVAIR in pulmonary hypertension WINREVAIR Pulmonary hypertension development program • FDA approved update to U.S. label incorporating positive results from Phase 3 HYPERION study in WHO Group 1 WHO Group 2 PAH CpCPH-HFpEF adults on background therapy newly diagnosed1 with PA
Slide 21: Progressing late-stage immunology and ophthalmology pipeline
Progressing late-stage immunology and ophthalmology pipeline Tulisokibart Remigromig • Presented promising Phase 2b results in adults with • Positive Phase 3 BRUNELLO presented at AAO moderate to severe hidradenitis suppurativa, with − Both doses (0.5mg and 0.8mg) of remigromig safety profile compar
Slide 22: Significant late-stage pipeline milestones expected over next twelve months
Significant late-stage pipeline milestones expected over next twelve months Immunology Infectious Disease Tulisokibart Efitazanamavir alpha (MK-1406) • PCD in August for Phase 3 ATLAS-UC trial • PCD in June for Phase 3 ANCHOR trial in prevention of influenza • Phase 2 data in additional indications
Slide 23: Q&A
Q&A Robert M. Davis Caroline Litchfield Dr. Dean Y. Li Chairman and Chief Executive Vice President Executive Vice President Executive Officer and Chief Financial Officer and President, Merck Research Laboratories Jannie Oosthuizen Brian Foard Peter Dannenbaum Executive Vice President Executive Vice
Slide 24: Appendix
Appendix 24
Slide 25: Q3 2026 GAAP financial results summary
Q3 2026 GAAP financial results summary $ in billions, except EPS amounts Q3 2026 Q3 2025 Change Change Ex-FX Sales $18.1 $17.3 +5% +4% Operating Expenses $7.4 $6.9 +8% +8% (SG&A and R&D)1,2 Tax Rate 8.9% 14.2% -5.3 pts N/A GAAP EPS1,2 $2.04 $2.32 -12% -13% 1. Q3 2026 GAAP results include a charge of
Slide 26: Executing upon balanced capital allocation strategy
Executing Capital allocation: upon balanced Trailingcapital twelveallocation months strategy Over the past 12 months1 $30 Capital allocation order of priority $25 $27.4 Well-positioned balance sheet with $20 capacity to fund additional value- Billions $15 enhancing business development opportunities
Slide 27: Broad and innovative pipeline to address significant unmet medical needs
Broad and innovative pipeline to address significant unmet medical needs Phase 2 Phase Phase 3 3 Under regulatory review Oncology Cardiometabolic & Oncology Immunology Oncology MK-1022 (patritumab Respiratory MK-1022 (patritumab KEYTRUDA (MK-3475) MK-7240 (tulisokibart) KEYTRUDA (MK-3475) deruxtecan
Slide 28: Acronyms
Acronyms AAO = American Academy of Ophthalmology FZD4 = Frizzled-4 PCD = Primary completion date AASLD = American Association for the Study of Liver HCC = Hepatocellular carcinoma PD-1/PD-L1 = Programmed cell death protein- Diseases 1/Programmed cell death ligand-1 HIV-1 = Human Immunodeficiency Vir