Merck reported a 7% increase in adjusted first-quarter profit, driven by a decrease in operating costs, which helped offset a 2% decline in revenue.
The decline in sales was primarily attributed to the temporary suspension of Gardasil vaccine shipments in China in January due to decreased demand.
The company reported adjusted quarterly earnings of $5.61 billion, or $2.22 per share, exceeding analysts’ expectations of $2.14, according to LSEG data. Global sales fell 2% to $15.5 billion, slightly above analysts’ estimate of $15.3 billion. Adjusted for currency effects, sales actually increased by 1%. Gardasil sales fell 41% to $1.3 billion, in line with estimates. Merck’s flagship cancer immunotherapy, Keytruda, rose 4% to $7.2 billion, slightly below the expected $7.4 billion. Winrevair, a lung disease treatment launched last year, generated $280 million in sales. Animal health products, on the other hand, increased by 5% to $1.6 billion. Looking ahead, Merck maintained its 2025 revenue forecast in the range of $64.1 to $65.6 billion, while slightly lowering its earnings expectation to the range of $8.82–$8.97 per share, citing a $200 million cost related to current tariffs and a licensing fee related to Hengrui Pharma.
