Merck & Co., Inc. (NYSE:MRK) Trading 2.2% Higher on Better-Than-Expected Earnings

Shares of Merck & Co., Inc. (NYSE:MRK) rose 2.2% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $118.46 and last traded at $115.8650. Approximately 25,596,909 shares were traded during trading, an increase of 90% from the average daily volume of 13,455,099 shares. The stock had previously closed at $113.37.

The company reported $2.04 EPS for the quarter, topping analysts’ consensus estimates of $2.01 by $0.03. The company had revenue of $16.40 billion for the quarter, compared to the consensus estimate of $16.19 billion. Merck & Co., Inc. had a return on equity of 45.22% and a net margin of 28.08%.The company’s quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.72 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Merck & Co., Inc. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 7th. Stockholders of record on Monday, March 16th will be given a dividend of $0.85 per share. The ex-dividend date 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%.

Trending Headlines about Merck & Co., Inc.

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

• Positive Sentiment: Q4 results beat expectations — Merck reported $2.04 EPS and $16.4B revenue, driven by strong Keytruda demand and growth in newer products; the beat underpins confidence in current cash flows. Business Wire: Q4 results
• Positive Sentiment: Large analyst upgrade: Wells Fargo raised its price target to $135 and moved to “overweight” (~14% upside vs. current levels), which likely helped buying interest today. TickerReport: Wells Fargo upgrade
• Positive Sentiment: High-profile endorsement: Jim Cramer flagged Merck as a favorite pharmaceutical name and spoke positively about its ability to “spread out the wealth,” providing retail-visible support. MSN: Jim Cramer on Merck
• Neutral Sentiment: Other price-target bumps but still “neutral” ratings — Cantor Fitzgerald and Citigroup raised targets to $120 but kept neutral stances (small upside), which offers modest support but no conviction change. Benzinga: PT raises
• Neutral Sentiment: Earnings call / transcripts available — management emphasized Keytruda strength and pipeline progress; transcripts provide detail for investors modeling product-by-product risk/reward. Seeking Alpha: Q4 call transcript
• Negative Sentiment: Cautious 2026 outlook pressured sentiment — management guided FY26 adjusted EPS to $5.00–$5.15 (consensus ~5.86) and revenue to $65.5B–$67.0B (below Street), which sparked earlier selling and trims near-term growth expectations. Reuters: 2026 guidance & patent concerns
• Negative Sentiment: Patent expirations and generics risk — Januvia and other drugs face loss of exclusivity this year, and management flagged that impact; investors should model increased generic pressure into FY26 estimates. CNBC: generics & guidance
• Negative Sentiment: Near-term growth slowdown expected as Merck invests and pursues acquisitions — coverage notes management expects slower earnings growth as it spends on deals and navigates pipeline inflection points. WSJ: slower growth & acquisitions

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. TD Cowen increased their target price on shares of Merck & Co., Inc. from $100.00 to $120.00 and gave the company a “hold” rating in a research note on Tuesday, January 20th. Citigroup raised their price objective on Merck & Co., Inc. from $115.00 to $120.00 and gave the stock a “neutral” rating in a research note on Wednesday. Morgan Stanley boosted their target price on Merck & Co., Inc. from $100.00 to $102.00 and gave the stock an “equal weight” rating in a research report on Friday, December 12th. Cantor Fitzgerald upped their target price on Merck & Co., Inc. from $116.00 to $120.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, BMO Capital Markets raised Merck & Co., Inc. from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $82.00 to $130.00 in a research note on Thursday, December 18th. Eight equities 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 stock. Based on data from MarketBeat.com, Merck & Co., Inc. has a consensus rating of “Hold” and a consensus target price of $117.87.

Institutional Investors Weigh In On Merck & Co., Inc.

Institutional investors have recently bought and sold shares of the business. Darwin Wealth Management LLC grew its position in Merck & Co., Inc. by 237.4% during the third quarter. Darwin Wealth Management LLC now owns 307 shares of the company’s stock valued at $26,000 after purchasing an additional 216 shares in the last quarter. Kilter Group LLC bought a new stake in shares of Merck & Co., Inc. in the 2nd quarter valued at approximately $27,000. Bare Financial Services Inc increased its stake in shares of Merck & Co., Inc. by 51.9% during the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the company’s stock worth $29,000 after purchasing an additional 125 shares during the last quarter. Barnes Dennig Private Wealth Management LLC increased its position in Merck & Co., Inc. by 302.3% during the third quarter. Barnes Dennig Private Wealth Management LLC now owns 354 shares of the company’s stock worth $30,000 after buying an additional 266 shares during the last quarter. Finally, Evolution Wealth Management Inc. acquired a new position in shares of Merck & Co., Inc. during the 2nd quarter valued at about $31,000. 76.07% of the stock is currently owned by institutional investors and hedge funds.

Merck & Co., Inc. Stock Performance

The firm has a fifty day simple moving average of $105.93 and a 200 day simple moving average of $92.66. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.66 and a quick ratio of 1.44. The company has a market cap of $293.75 billion, a price-to-earnings ratio of 16.26, a P/E/G ratio of 1.63 and a beta of 0.28.

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.