Merck & Co., Inc. (NYSE:MRK) Stock Price Up 2.2% After Better-Than-Expected Earnings

Merck & Co., Inc. (NYSE:MRK) shares rose 2.2% on Wednesday following a better than expected earnings announcement. The company traded as high as $120.39 and last traded at $118.35. Approximately 21,897,695 shares traded hands during trading, an increase of 58% from the average daily volume of 13,830,246 shares. The stock had previously closed at $115.84.

The company reported $2.04 earnings per share for the quarter, topping analysts’ consensus estimates of $2.01 by $0.03. Merck & Co., Inc. had a net margin of 29.63% and a return on equity of 44.54%. The company had revenue of $16.40 billion for the quarter, compared to analysts’ expectations of $16.19 billion. During the same period in the prior year, the company earned $1.72 earnings per share. The firm’s revenue was up 5.0% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Merck & Co., Inc. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 7th. Investors of record on Monday, March 16th will be issued a $0.85 dividend. The ex-dividend date of this dividend is Monday, March 16th. This represents a $3.40 annualized dividend and a dividend yield of 2.9%. Merck & Co., Inc.’s dividend payout ratio (DPR) is 44.91%.

Key Headlines Impacting Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Q4 results beat expectations — Merck reported stronger-than-expected Q4 revenue and EPS (EPS about $2.04), led by continued Keytruda strength; that beat provides near-term earnings credibility. Read More.
• Positive Sentiment: Wells Fargo raised its price target to $135 and kept an overweight rating — a sizable upgrade that signals analyst confidence and supports upside thesis. Read More.
• Neutral Sentiment: Citigroup and Cantor Fitzgerald nudged price targets to $120 but maintained “neutral” ratings — small upgrades that offer limited incremental bullishness given the unchanged ratings and modest upside. Read More.
• Negative Sentiment: 2026 guidance disappointed — Merck set FY?2026 EPS of $5.00–$5.15 and revenue $65.5B–$67.0B, below Street estimates (consensus ~ $5.86 EPS / ~$67.5–67.6B revenue), which drove near?term downside pressure. Read More.
• Negative Sentiment: Patent expirations and higher spending flagged — Management highlighted looming generic competition (e.g., Januvia) and increased M&A/investment plans that may slow earnings growth, weighing on medium?term visibility. Read More.
• Neutral Sentiment: Investor resources and call transcripts available — Earnings call transcripts and coverage summarize management tone (beat but cautious) and are useful for drilling into product?level drivers and pipeline commentary. Read More.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Citigroup boosted their price target on shares of Merck & Co., Inc. from $115.00 to $120.00 and gave the company a “neutral” rating in a report on Wednesday. Scotiabank boosted their target price on shares of Merck & Co., Inc. from $105.00 to $120.00 and gave the company a “sector outperform” rating in a research note on Thursday, December 4th. The Goldman Sachs Group raised their price target on shares of Merck & Co., Inc. from $92.00 to $120.00 and gave the company a “buy” rating in a research note on Tuesday, December 2nd. Deutsche Bank Aktiengesellschaft lifted their price target on Merck & Co., Inc. from $110.00 to $111.00 and gave the company a “hold” rating in a report on Tuesday, November 18th. Finally, Wolfe Research raised Merck & Co., Inc. from a “peer perform” rating to an “outperform” rating and set a $135.00 price objective for the company in a report on Thursday, January 8th. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Merck & Co., Inc. presently has an average rating of “Hold” and an average target price of $117.87.

Institutional Trading of Merck & Co., Inc.

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Merck & Co., Inc. by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 254,322,763 shares of the company’s stock valued at $26,770,014,000 after purchasing an additional 2,185,853 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in shares of Merck & Co., Inc. by 9.4% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 53,865,466 shares of the company’s stock worth $4,263,991,000 after purchasing an additional 4,636,183 shares in the last quarter. DLD Asset Management LP lifted its stake in Merck & Co., Inc. by 30.1% during the third quarter. DLD Asset Management LP now owns 47,500,000 shares of the company’s stock valued at $3,986,675,000 after purchasing an additional 11,000,000 shares during the last quarter. Norges Bank bought a new stake in Merck & Co., Inc. during the second quarter worth approximately $2,858,570,000. Finally, Franklin Resources Inc. boosted its holdings in Merck & Co., Inc. by 23.5% during the second quarter. Franklin Resources Inc. now owns 27,032,601 shares of the company’s stock worth $2,139,901,000 after buying an additional 5,135,748 shares in the last quarter. Institutional investors own 76.07% of the company’s stock.

Merck & Co., Inc. Stock Performance

The stock has a market cap of $293.75 billion, a price-to-earnings ratio of 15.63, a price-to-earnings-growth ratio of 1.60 and a beta of 0.28. The company’s 50-day simple moving average is $105.66 and its 200-day simple moving average is $92.48. The company has a quick ratio of 1.44, a current ratio of 1.66 and a debt-to-equity ratio of 0.77.

About Merck & Co., Inc.

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.