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Merck Reports Q1 Loss From Cidara Charge as Sales Beat and 2026 Outlook Rises

A one-time deal cost turned a strong sales quarter into a loss.

Overview

  • Merck, which reported results Thursday, logged $16.3 billion in revenue, up 5%, and an adjusted loss of $1.28 per share after a $3.62 charge tied to its Cidara acquisition.
  • Sales beat Wall Street estimates on strong demand for Keytruda, which rose 12% to about $8 billion helped by uptake of a new injectable version.
  • New lung drug Winrevair generated $525 million, up 88%, while the animal health unit grew 13% to roughly $1.8 billion.
  • Legacy products weakened, with diabetes drug Januvia down 28% to $574 million and HPV vaccine Gardasil down 19% to $1.07 billion due to softer demand in China, Japan, and U.S. public purchasing.
  • Merck narrowed its 2026 forecast to $65.8–$67.0 billion in sales and $5.04–$5.16 in earnings per share, and said a planned Terns deal will add a $2.35 one-time charge that is not in the outlook.