Merck reported third-quarter revenue of $18.1 billion, up 5% year over year and above the $17.3 billion consensus, as Keytruda, its newer subcutaneous formulation Keytruda Qlex, Gardasil and Winrevair all beat expectations. Keytruda franchise sales reached $8.6 billion, with Keytruda Qlex contributing $830 million versus forecasts of $649 million, while Gardasil rose 14% to nearly $2 billion and Winrevair jumped 93% to $694 million.

Why It Matters To Oncology

• Keytruda remains the commercial engine for Merck's oncology business, and the stronger-than-expected uptake of the SC formulation suggests a potentially important lifecycle-management tool ahead of Keytruda's loss of exclusivity starting in 2028.

• Management also pointed to pipeline confidence beyond Keytruda, including MK-2010, the TROP2 ADC sacituzumab tirumotecan, and the personalized cancer vaccine intismeran autogene.

• At ESMO, Merck said sacituzumab tirumotecan cut risk of death by 32% in advanced or recurrent endometrial cancer in the Phase III TroFuse-005 trial, supporting broader oncology upside.

The Financials

• Q3 revenue: $18.1 billion, up 5% year over year, versus Wall Street expectations of $17.3 billion.

• Keytruda franchise: $8.6 billion, up 6%, above estimates of $7.7 billion; Keytruda Qlex: $830 million, above forecasts of $649 million.

• Gardasil: just under $2 billion, up 14%, topping estimates of $1.8 billion; Winrevair: $694 million, up 93%, above forecasts of $645 million.

• About $550 million of growth reflected earlier-than-expected purchasing, including a CDC Gardasil procurement; CFO Caroline Litchfield said roughly $200 million tied to Keytruda should unwind fully in Q4.

• Net income fell 12% to $5.1 billion, reflecting a $400 million charge tied to SciBrunch Therapeutics and a $300 million milestone payment to LaNova Medicines.

• Merck raised full-year revenue guidance to $66.8 billion-$67.3 billion and EPS guidance to $2.77-$2.82.

What They're Saying

• CEO Robert Davis said recent performance increases his confidence that Merck can exceed its prior mid-2030s goal of $70 billion in annual sales.

• Davis said upside could come from assets not fully baked into prior forecasts, including the $6.7 billion Terns Pharmaceuticals acquisition and the PD-1/VEGF bispecific MK-2010 licensed from LaNova.

• He also said intismeran autogene now appears to have a stronger targeted product profile and better commercial potential than originally expected.

What's Next

• Clinicians and oncology investors will be watching whether Keytruda Qlex can sustain momentum as Merck prepares for the franchise's 2028 patent cliff.

• Pipeline readouts and study starts across MK-2010 combinations, sacituzumab tirumotecan, and intismeran autogene will be central to the company's post-Keytruda growth story.

• Near term, Q4 results should clarify how much of the Q3 boost reverses after the pull-forward in purchasing, especially the roughly $200 million tied to Keytruda.

Reference: Merck & Co., Inc., Rahway, N.J., USA Announces Third-Quarter 2026 Financial Results; Highlights Multiple Milestones Advancing Broad, Diverse Pipeline