At a glance
Merck & Company Inc is worth $366.03B, about 20 times its fiscal 2025 earnings. Revenue grew 1.3% to $65.01B in fiscal 2025, with 28.1% kept as profit; over 5 years it has grown 9.4% a year. It pays a 2.29% dividend yield, raised every year for at least 9 years, and returned $45.66B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +77.6% over the past year with dividends reinvested and +14.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 19.3% in the 2020 crash (S&P 500: 33.7%) and 10.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 1 month after the lows.
The business in plain English
Merck is a global drugmaker that sells prescription medicines, vaccines and animal health products. Its Pharmaceutical segment brought in $58.1 billion, or 89.4% of total sales of $65.0 billion, in fiscal 2025 (the year ended December 31, 2025). It sells medicines mainly to drug wholesalers, retailers, hospitals, governments and managed care groups such as pharmacy benefit managers, which run drug plans for insurers and employers. Vaccines go mainly to doctors, wholesalers and governments.
One product dominates. Keytruda, a cancer drug that helps the immune system attack tumors, made up almost half of company sales together with its under-the-skin version, Keytruda Qlex. It is approved for many cancers, including lung, skin, breast and bladder. Other large products include the Gardasil vaccines against HPV, the diabetes pills Januvia and Janumet, and newer drugs such as Winrevair for high blood pressure in the lungs. Merck also takes a share of profits from the cancer drugs Lynparza and Lenvima through partnerships.
The Animal Health segment, 9.8% of sales, sells medicines, vaccines and digital tracking tools for livestock and pets to vets, farmers and pet owners. By region, the United States produced 55.9% of fiscal 2025 sales and Europe, the Middle East and Africa 22.4%. China was 3%, after a sharp drop in Gardasil sales there.
Price history
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MRK +77.6% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Pharmaceutical segment | $58.14B | 89.4% |
| Animal Health | $6.35B | 9.8% |
By geography
| United States | $36.36B | 55.9% |
| Europe, Middle East and Africa | $14.58B | 22.4% |
| Latin America | $3.41B | 5.2% |
| Asia Pacific (other than Japan and China) | $2.98B | 4.6% |
| Other | $2.88B | 4.4% |
| Japan | $2.71B | 4.2% |
| China | $1.94B | 3% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $16.61B, up 5.1% from a year earlier, and net income was $-1.33B (-130.2%).
- For fiscal 2025, revenue was $65.01B (+1.3% year over year; +9.4% a year from FY2020 to FY2025) with a 28.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.4% good |
|---|---|
| Free cash flow margin | 19% good |
| Return on equity (FY2025) | 34.7% good |
| Return on assets (FY2025) | 13.3% good |
| Net cash (cash minus debt) | $-45.54B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $41.52B | $7.07B | $5.82B |
| FY2021 | $48.70B | $13.05B | $8.67B |
| FY2022 | $59.28B | $14.52B | $14.71B |
| FY2023 | $60.12B | $365.0M | $9.14B |
| FY2024 | $64.17B | $17.12B | $18.10B |
| FY2025 | $65.01B | $18.25B | $12.36B |
Valuation snapshot
| Market value | $366.03B |
|---|---|
| P/E ratio | 20.4 |
| Dividend yield | 2.29% |
Rank among 1514 US companies
Market value at each year end
Merck & Company’s market value went from $154.58B at the end of 2016 to $366.03B on Nov 2, 2026, about 2.4 times as much; since the end of 2025 it is up 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $366.03B | +40.1% |
| 2025 | $261.26B | +3.8% |
| 2024 | $251.65B | -8.9% |
| 2023 | $276.26B | -1.8% |
| 2022 | $281.30B | +45.3% |
| 2021 | $193.59B | -1.8% |
| 2020 | $197.10B | -10.6% |
| 2019 | $220.53B | +16.5% |
| 2018 | $189.23B | +29.6% |
| 2017 | $146.00B | -5.6% |
| 2016 | $154.58B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MRK price data to Nov 2, 2026 | +43.9% | +77.6% | +16.5% | +14.2% | +13.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +43.9% |
| 2025 | +9.8% |
| 2024 | -6.3% |
| 2023 | +1.0% |
| 2022 | +49.4% |
| 2021 | +1.9% |
| 2020 | -7.2% |
| 2019 | +22.3% |
| 2018 | +40.0% |
| 2017 | -1.5% |
| 2016 | +15.1% |
| 2015 | -3.9% |
| 2014 | +16.9% |
| 2013 | +26.8% |
| 2012 | +13.1% |
| 2011 | +9.5% |
| 2010 | +2.9% |
| 2009 | +26.7% |
| 2008 | -45.3% |
| 2007 | +37.4% |
| 2006 | +42.5% |
| 2005 | +3.8% |
| 2004 | -27.9% |
| 2003 | -11.7% |
| 2002 | -1.4% |
| 2001 | -36.0% |
| 2000 | +41.7% |
| 1999 | -7.5% |
| 1998 | +41.2% |
| 1997 | +35.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 58.2% over that stretch · deepest drop along the way 63.3%, back to its old high 49.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 18.4% over that stretch · deepest drop along the way 19.3%, back to its old high 0.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 20.6% over that stretch · deepest drop along the way 10.8%, back to its old high 1.1 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 17 sales ($30.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 12, 2026 | Jennifer Zachary EVP, General Counsel | sell | $10.7M |
| Aug 5, 2026 | David Michael Williams EVP,Chief Info&Digital Officer | sell | $4.5M |
| Aug 10, 2026 | Richard R. DeLuca EVP&Pres, Merck Animal Heallth | sell | $2.7M |
| Aug 6, 2026 | Chirfi Guindo EVP, Access, Policy & Comms | sell | $2.0M |
| Aug 5, 2026 | David Michael Williams EVP,Chief Info&Digital Officer | sell | $1.7M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.53% | Mar 31, 2026 |
ETFs with the most weight in MRK
| FTXH First Trust Nasdaq Pharmaceuticals ETF | 7.38% |
| DJD Invesco Dow Jones Industrial Average Dividend ETF | 5.74% |
| PJP Invesco Pharmaceuticals ETF | 4.99% |
| THNR Amplify Weight Loss Drug & Treatment ETF | 4.82% |
| PPH VanEck Pharmaceutical ETF | 4.78% |
| TINT ProShares Smart Materials ETF | 4.51% |
| IHE iShares U.S. Pharmaceuticals ETF | 4.5% |
| DOGG FT Vest DJIA Dogs 10 Target Income ETF | 4.47% |
What could go wrong
- Heavy reliance on Keytruda. Keytruda and Keytruda Qlex made up almost half of fiscal 2025 sales. Merck says key products drive much of its profit and cash flow, so anything that hurts Keytruda's market could hit results hard.
- Sales drop fast when patents expire. When a drug loses market exclusivity, cheaper generics or biosimilars (copies of drugs made from living cells) arrive. Merck says sales then usually fall fast and sharply. Rivals may also challenge its patents.
- Gardasil slump in China. Gardasil sales in China fell significantly in fiscal 2025, dragging down Merck's whole China business. In its annual report filed February 24, 2026, Merck said it did not expect those sales to materially increase in 2026.
- New drugs may not replace old ones. Developing drugs is slow, costly and uncertain. If Merck's own research or acquisitions do not yield successful new products, it may not replace sales lost when older drugs lose patent protection.
- Pressure on drug prices. Public and private buyers keep pushing prices down, and US health care faces growing regulation and political action. With 55.9% of fiscal 2025 sales from the United States, US policy changes carry extra weight.
- Vaccine and biologic manufacturing problems. Merck warns it may face difficulties and delays making some products, including vaccines. Vaccines and biologics (drugs made from living cells) are complex to produce, and supply problems could cost sales.
Recent events
- Quarterly results released
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Other company announcement
- Quarterly results released
- Quarterly results released
- Other company announcement
- Quarterly results released
For income and retirement investors
Merck has increased its dividend at least 9 years in a row through 2025. Dividends per share rose from $2.48 in 2020 to $3.28 in 2025, or 5.8% a year. They kept rising in 2023, when earnings fell to $0.14 a share. In 2025, dividends used 44.8% of earnings and 66.1% of free cash flow (cash from operations minus capital spending). Buybacks totaled $8.6 billion from 2021 through 2025, including $5.1 billion in 2025. The share count fell 2.3% from October 2021 to July 2026. The yield was 2.4% as of October 27, 2026.
In the 2008 financial crisis the shares fell 63.3% and did not recover until April 2013. In the 2020 COVID crash they fell 19.3% but recovered within a month. From the market's January 2022 peak to its October low, they gained 20.6%. Over the three years to October 27, 2026, the deepest drop was 43.5%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Merck make money?
Merck makes most of its money selling prescription medicines and vaccines. Its Pharmaceutical segment brought in $58.1 billion, or 89.4% of total sales of $65.0 billion, in fiscal 2025. The cancer drug Keytruda was the biggest seller by far. The Animal Health segment, which sells medicines, vaccines and tracking tools for livestock and pets, made up 9.8%. Merck also earns a share of profits from partner drugs Lynparza and Lenvima. Net income was $18.3 billion that year.
How much does Merck depend on Keytruda?
Heavily. Keytruda and its under-the-skin version, Keytruda Qlex, made up almost half of Merck's $65.0 billion in fiscal 2025 sales, and their sales grew from fiscal 2024. Keytruda helps the immune system attack cancer and is approved for many tumor types. Merck's annual report warns that key products generate much of its profit and cash flow, and that drugs losing market exclusivity typically see a significant and rapid drop in sales. How fast newer products such as Winrevair and Capvaxive grow is worth watching.
Does Merck raise its dividend every year?
Yes. Merck raised its regular dividend per share in every fiscal year from 2016 through 2025, at least 9 increases in a row. It paid $3.28 per share in fiscal 2025, up from $2.48 in fiscal 2020, or about 5.8% growth a year. The dividend used 44.8% of fiscal 2025 earnings and 66.1% of free cash flow, the cash left after running and investing in the business. The dividend yield was 2.4% as of October 27, 2026. Past increases are no guarantee.
Why did Merck's Gardasil sales fall?
Merck's annual report points to China. The report, filed February 24, 2026, says Gardasil and Gardasil 9 sales in China were significantly lower in fiscal 2025 and that Merck did not expect them to materially increase in 2026. As a result, its China business declined significantly and made up just 3% of fiscal 2025 sales. Gardasil vaccines help prevent certain cancers and diseases caused by human papillomavirus (HPV). Even so, Gardasil was still Merck's second-largest product line in fiscal 2025.
How has Merck stock performed?
Strongly over the latest year, with deep drops along the way. As of October 27, 2026, Merck stock returned 65.9% over 1 year, an average of 15.2% a year over 5 years and 12.7% a year over 10 years. It fell as much as 43.5% from peak to low during the prior 3 years. In the 2008 financial crisis it dropped 63.3% and took about 49.5 months to recover. Past returns do not predict future results.