Merck hikes revenue outlook as new drug sales grow, but cuts profit guidance due to deal charges

The exterior view of the entrance to Merck headquarters in Rahway, New Jersey, on Feb. 5, 2024.Spencer Platt | Getty ImagesMerck on Tuesday beat second-quarter estimates and hiked its revenue outlook, as a slate of new products showed strong growth. But the pharmaceutical giant cut its profit guidance due to a charge tied to its acquisition of biotech company Terns Pharmaceuticals. Merck now anticipates its 2026 revenue will come in between $66.3 billion and $67.3 billion, up from a previous guidance of $65.8 billion and $67 billion. The company also expects adjusted earnings to be between $2.66 and $2.76 per share, which now includes a one-time charge of $5.7 billion, or $2.31 per share, related to the Terns deal. It also includes a $9 billion, or $3.62 per share, charge related to Merck's acquisition of Cidara Therapeutics in January. That adjusted profit outlook is down from a previous range of $5.04 to $5.16 per share. Merck has been on a buying spree as it races to offset generic competition for a few drugs, including Type 2 diabetes medications Januvia and Janumet later this year, and blockbuster immunotherapy Keytruda in 2028. The company is also betting on a newer drugs to ...