Merck $MRK ( ▲ 2.6% ) delivered a solid quarter to close out 2025, topping Wall Street’s expectations on both earnings and revenue. But the good vibes faded fast after the drugmaker’s full-year 2026 guidance landed below what analysts were hoping to see.
In other words, the past looked strong, the future looked a bit more cautious.
Quarterly Results Get a Shot of Strength
For Q4, Merck posted adjusted earnings per share of $2.04, beating estimates of $2.01. Revenue came in at $16.4 billion, ahead of the $16.02 billion analysts had penciled in.
That is a clean beat on both the top and bottom lines, showing the company’s current portfolio is still delivering steady performance despite ongoing pricing and competitive pressures in the pharma world.
Guidance Brings Everyone Back to Earth
The bigger story was the outlook. For 2026, Merck expects adjusted earnings per share between $5.00 and $5.15, below the $5.27 analysts were expecting. Revenue guidance of $65.5 billion to $67.0 billion also fell short, with the midpoint under the $67.4 billion consensus.
When a healthcare giant like Merck $MRK lowers the tone on forward expectations, investors tend to focus less on what just happened and more on what might slow down next. The result is a classic earnings split decision: strong quarter, softer road ahead.