Merck & Co., Inc. (NYSE:MRK) Stock Price Up 2.2% After Earnings Beat

Merck & Co., Inc. (NYSE:MRK)’s stock price traded up 2.2% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $120.39 and last traded at $118.35. 21,897,695 shares changed hands during mid-day trading, an increase of 58% from the average session volume of 13,830,246 shares. The stock had previously closed at $115.84.

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

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 7th. Shareholders of record on Monday, March 16th will be given a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Monday, March 16th. Merck & Co., Inc.’s dividend payout ratio is 46.70%.

More Merck & Co., Inc. News

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

• Positive Sentiment: Merck reported Q4 results that beat estimates (EPS $2.04 vs. ~$2.01; revenue $16.4B vs. ~$16.2B), showing solid sales growth and margin strength — a primary short-term bullish catalyst. Merck Trading Higher on Better-Than-Expected Earnings
• Positive Sentiment: Scotiabank raised its target on MRK, citing continued execution across the business — supports analyst-driven buying. Scotiabank Lifts Merck Target
• Positive Sentiment: Wells Fargo bumped its target to $135 and kept an overweight stance (largest upside among recent upgrades), giving a meaningful analyst tailwind for the stock. Wells Fargo Raises Merck Target
• Positive Sentiment: High-profile endorsement: Jim Cramer flagged MRK as one of his favorite pharma stocks, which can spur retail interest and intraday buying momentum. Jim Cramer on Merck
• Neutral Sentiment: Citi and Cantor Fitzgerald nudged targets to ~$120 but maintained neutral ratings — modest upside only, so limited incremental impact on momentum. Analyst Target Changes via Benzinga
• Negative Sentiment: Management struck a cautious tone on 2026 outlook despite the beat; the guidance language and conservative near-term commentary could cap upside until clarity on growth drivers. Merck Beats Estimates but Cautious on 2026

Wall Street Analysts Forecast Growth

MRK has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Merck & Co., Inc. in a report on Monday, December 29th. Scotiabank boosted their price target on Merck & Co., Inc. from $105.00 to $120.00 and gave the stock a “sector outperform” rating in a research report on Thursday, December 4th. Bank of America upped their price objective on Merck & Co., Inc. from $105.00 to $120.00 and gave the company a “buy” rating in a research note on Monday, December 15th. Morgan Stanley lifted their target price on Merck & Co., Inc. from $100.00 to $102.00 and gave the stock an “equal weight” rating in a research note on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on Merck & Co., Inc. from $110.00 to $111.00 and gave the company a “hold” rating in a research note on Tuesday, November 18th. Eight research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $117.87.

Institutional Trading of Merck & Co., Inc.

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of Merck & Co., Inc. by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 254,322,763 shares of the company’s stock valued at $26,770,014,000 after acquiring an additional 2,185,853 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Merck & Co., Inc. by 9.4% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 53,865,466 shares of the company’s stock valued at $4,263,991,000 after purchasing an additional 4,636,183 shares during the period. DLD Asset Management LP boosted its holdings in Merck & Co., Inc. by 30.1% in the 3rd quarter. DLD Asset Management LP now owns 47,500,000 shares of the company’s stock valued at $3,986,675,000 after purchasing an additional 11,000,000 shares during the period. Norges Bank acquired a new position in shares of Merck & Co., Inc. during the 2nd quarter worth approximately $2,858,570,000. Finally, Franklin Resources Inc. increased its holdings in shares of Merck & Co., Inc. by 23.5% during the second quarter. Franklin Resources Inc. now owns 27,032,601 shares of the company’s stock worth $2,139,901,000 after purchasing an additional 5,135,748 shares during the period. 76.07% of the stock is currently owned by institutional investors.

Merck & Co., Inc. Trading Up 1.1%

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 capitalization of $296.90 billion, a price-to-earnings ratio of 16.43, a P/E/G ratio of 2.00 and a beta of 0.28. The business’s 50-day moving average price is $106.23 and its two-hundred day moving average price is $92.85.

Merck & Co., Inc. Company Profile

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.