| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 114.2x | 17.8x | Bottom tier | |
Growth | 41 | 4.6% | 7.1% | Around median | |
Quality | 81 | 5.6% | 4.5% | Top tier | |
Safety | 62 | 3.3x | 2.6x | Around median | |
Capital Return | 37 | 2.33% | 2.12% | Bottom tier | |
Momentum | 94 | 55.1% | 2.9% | Top tier | |
Sentiment | 72 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Merck & Co., Inc. develops and markets medicines and vaccines, deriving the largest portion of its business presented in fiscal Q2 2026 from oncology, alongside vaccines and infectious diseases, cardiovascular, metabolic and respiratory diseases, and animal health. The KEYTRUDA franchise remains the core revenue driver; the KEYTRUDA and KEYTRUDA QLEX family generated sales of $8.4 billion, while newer products such as WINREVAIR, OHTUVAYRE, CAPVAXIVE, and WELIREG helped broaden the growth mix.
In fiscal Q2 2026, revenue reached $16.6 billion, up 5% or 4% excluding currency effects, while gross profit according to EDGAR data was approximately $12.2 billion, equivalent to a calculated gross margin of about 73.5%. The KEYTRUDA family accounted for approximately 51% of company revenue, and KEYTRUDA QLEX alone generated sales of $463 million, while animal health recorded growth of 5%, driven by 6% growth in livestock products and 5% growth in companion animal products.
EDGAR data recorded a net loss of $1.3 billion and negative earnings per share of $0.54 in fiscal Q2 2026, while non-GAAP results showed a loss of $0.13 per share. Profitability was affected by the $5.7 billion Terns Pharmaceuticals acquisition charge, or $2.31 per share, and by an increase in operating expenses to $12.6 billion, while non-GAAP gross margin declined 1.1 percentage points to 81.1% due to higher inventory provisions.
The average analyst price target is $154.93 with a Buy consensus, while the target range extends from $105 to $180, a wide spread reflecting differing estimates of pipeline value and regulatory risks. The average target is near the upper end of the 52-week range of $156.92, while Morgan Stanley's $179 target exceeds it following the cancer vaccine results; by contrast, the low target of $105 highlights the impact of fiscal Q2 2026 losses, Medicare pressures, and revenue dependence on KEYTRUDA.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
The KEYTRUDA and KEYTRUDA QLEX family generated sales of $8.4 billion in fiscal Q2 2026, up 4%, and accounted for approximately 51% of Merck's revenue. KEYTRUDA QLEX alone generated sales of $463 million, with adoption improving after a permanent reimbursement code was established in April 2026. Growth came from use in earlier-stage cancers, breast and cervical cancers, and the combination with Padcev in urothelial cancer. By contrast, management expects KEYTRUDA growth in the United States to moderate as several indications approach peak penetration.
The companies announced on August 19, 2026, the phase 3 success of personalized mRNA-based therapy with KEYTRUDA in patients with high-risk melanoma. The combination met the primary endpoint of extending recurrence-free survival compared with KEYTRUDA treatment alone. The results prompted Morgan Stanley on August 20, 2026, to upgrade the stock to Overweight and set a price target of $179. The clinical results remain an important catalyst, but the information provided does not include regulatory approval or sales for this therapy.
Automated analysis for informational purposes only — not investment advice.
They show growing contributions, but these remain much smaller than KEYTRUDA's $8.4 billion in sales in fiscal Q2 2026. WINREVAIR generated sales of $588 million, up 75%, WELIREG approximately $271 million, up 67%, and CAPVAXIVE approximately $184 million, up 40%. OHTUVAYRE sales reached approximately $204 million, while the company began launching IDVYNSO and LIPFENDRA received U.S. Food and Drug Administration approval. Diversification is therefore progressing operationally, but revenue concentration in KEYTRUDA remains high.
EDGAR data showed a net loss of $1.3 billion and negative earnings per share of $0.54 in fiscal Q2 2026. The results included a $5.7 billion charge related to the acquisition of Terns Pharmaceuticals, equivalent to an impact of $2.31 per share within non-GAAP results. The acquisition added MK-4208, a therapy in development for certain patients with chronic myeloid leukemia. Operating expenses also rose to $12.6 billion due to the transaction and investment in launches and the research pipeline.
Merck expects fiscal 2026 revenue of between $66.3 billion and $67.3 billion, representing growth of between 2% and 4%, including a positive currency effect of approximately one percentage point. It expects non-GAAP earnings per share of between $2.66 and $2.76, with a midpoint of $2.71. The guidance assumes a gross margin of approximately 81% and operating expenses of between $42 billion and $42.7 billion. The figures include the upfront Terns charge of $2.31 per share and approximately $0.12 per share for the development of MK-4208 and transaction financing.
On August 25, 2026, a federal court dismissed Merck's lawsuit against the Medicare drug price negotiation program, with high excise taxes applying to noncompliant manufacturers. Clinically, the tulisokibart study in systemic sclerosis-associated interstitial lung disease did not meet its primary endpoint, despite the success of the phase 3 ulcerative colitis study. LIPFENDRA demonstrated reductions of up to 60% in low-density lipoprotein cholesterol but does not yet have cardiovascular outcomes data. The company expects its cardiovascular outcomes study to read out in 2029.
