Merck & Co., Inc. (MRK) Q4 2025 Results Conference Call: A Detailed Analysis
On February 4, 2025, Merck & Co., Inc. (MRK) held its Q4 2025 sales and earnings conference call. The call was led by Peter Dannenbaum, Senior Vice President of Investor Relations, and featured presentations from Rob Davis, Chairman and CEO; Caroline Litchfield, Chief Financial Officer; and Dr. Dean Li, President of Merck Research Labs. Umer Raffat from Evercore ISI, Terence Flynn from Morgan Stanley, Luisa Hector from Berenberg, Mohit Bansal from Wells Fargo, Daina Graybosch from Leerink Partners, Geoff Meacham from Citi, Chris Schott from JPMorgan, Tim Anderson from Bank of America, Akash Tewari from Jefferies, Trung Huynh from UBS, and Vamil Divan from Guggenheim participated in the call as conference call participants.
Financial Performance
During the call, the company reported a 6% increase in Q4 revenues to $13.8 billion, surpassing analysts’ expectations of $13.5 billion. Merck’s pharmaceutical segment led the growth, with sales up 7% to $12.2 billion. The company’s animal health business also posted strong growth, with revenues up 5% to $1.6 billion. The company’s net income for the quarter came in at $2.8 billion, or $1.13 per share, compared to $2.5 billion, or $0.98 per share, in the same period last year.
Business Highlights
Merck announced several business highlights during the call. The company’s oncology business had a strong quarter, with sales of Keytruda, its PD-1 inhibitor, up 23% to $3.6 billion. Merck also reported strong sales of its COVID-19 vaccine, with $3.5 billion in sales during the quarter. The company’s animal health business also had a strong quarter, with sales up 5% to $1.6 billion, driven by growth in both vaccines and pharmaceuticals.
Pipeline and R&D
Dr. Dean Li provided an update on Merck’s pipeline and R&D efforts. The company has several promising candidates in various stages of development, including a potential new treatment for Alzheimer’s disease and a new cancer immunotherapy. Merck also announced plans to invest $4.5 billion in R&D in 2026, up from $4.3 billion in 2025.
Impact on Individuals
The strong financial performance and promising pipeline of Merck’s pharmaceutical business could lead to continued growth and innovation in the healthcare industry. Merck’s oncology business, in particular, is poised for significant growth with the continued success of Keytruda. This could lead to improved treatment options and outcomes for cancer patients. Additionally, the development of a potential new treatment for Alzheimer’s disease could have a significant impact on the lives of millions of people affected by the disease.
Impact on the World
The strong financial performance and promising pipeline of Merck’s pharmaceutical business could also have a positive impact on the global economy. The continued growth of the healthcare industry could lead to job creation and economic growth. Additionally, the development of new treatments for diseases such as cancer and Alzheimer’s could lead to improved quality of life and productivity for individuals, as well as reduced healthcare costs in the long term.
Conclusion
Merck & Co., Inc.’s strong financial performance in Q4 2025, driven by the success of its pharmaceutical business, is a positive sign for the healthcare industry and the global economy. The continued growth of Merck’s oncology business, driven by the success of Keytruda, and the promising pipeline of new treatments and vaccines could lead to improved treatment options and outcomes for individuals and reduced healthcare costs in the long term. As Merck invests in R&D, the potential for new treatments and innovations in the healthcare industry is exciting.
- Merck reported a 6% increase in Q4 revenues to $13.8 billion, surpassing analysts’ expectations
- The pharmaceutical segment led the growth, with sales up 7% to $12.2 billion
- Net income for the quarter came in at $2.8 billion, or $1.13 per share
- Keytruda sales up 23% to $3.6 billion
- Strong sales of COVID-19 vaccine, with $3.5 billion in sales during the quarter
- Animal health business sales up 5% to $1.6 billion
- Merck plans to invest $4.5 billion in R&D in 2026
- Strong financial performance could lead to continued growth and innovation in the healthcare industry
- Continued growth of Merck’s oncology business could lead to improved treatment options and outcomes for cancer patients
- Development of potential new treatments and vaccines could lead to reduced healthcare costs in the long term
