Strong Earnings Report: Merck reported third-quarter earnings and revenue exceeding estimates, driven by a 10% increase in sales of its cancer immunotherapy Keytruda, which generated over $8 billion in revenue for the first time.
Revised Profit Outlook: The company narrowed its full-year profit outlook, now expecting adjusted earnings of $8.93 to $8.98 per share, influenced by lower tariff costs and an amended deal with AstraZeneca.
Challenges with Gardasil: Sales of the HPV vaccine Gardasil fell 24% to $1.75 billion due to decreased demand in China, where shipments have been halted until at least the end of 2025.
Overall Revenue Growth: Merck's total revenue for the quarter reached $17.28 billion, a 4% increase year-over-year, with its pharmaceutical unit contributing $15.61 billion, reflecting strong demand across various drug categories.
Wall Street analysts forecast MRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRK is 119.53 USD with a low forecast of 95.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast MRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRK is 119.53 USD with a low forecast of 95.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 109.180
Low
95.00
Averages
119.53
High
139.00
Current: 109.180
Low
95.00
Averages
119.53
High
139.00
TD Cowen
Steve Scala
Hold
maintain
$100 -> $120
2026-01-20
New
Reason
TD Cowen
Steve Scala
Price Target
$100 -> $120
AI Analysis
2026-01-20
New
maintain
Hold
Reason
TD Cowen analyst Steve Scala raised the firm's price target on Merck to $120 from $100 and keeps a Hold rating on the shares. The firm said Merck is a great company, but barring bolstering of growth outlook, they think it is unlikely to be a top pharma stock.
BofA
Underperform
maintain
$24 -> $27
2026-01-20
New
Reason
BofA
Price Target
$24 -> $27
2026-01-20
New
maintain
Underperform
Reason
BofA raised the firm's price target on Moderna (MRNA) to $27 from $24 and keeps an Underperform rating on the shares. The company released five-year data for intismeran in combo with Merck's (MRK) Keytruda in high-risk melanoma patients, the analyst tells investors in a research note. While there is upside risk into the firm still notes historical limitations of pembro combos, logistical challenges, and a higher bar for success, adding that the higher price target comes on higher peak sales expectations for intismeran in adjuvant melanoma.
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Wolfe Research
Alexandria Hammond
Peer Perform -> Outperform
upgrade
$135
2026-01-08
Reason
Wolfe Research
Alexandria Hammond
Price Target
$135
2026-01-08
upgrade
Peer Perform -> Outperform
Reason
As previously reported, Wolfe Research analyst Alexandria Hammond upgraded Merck to Outperform from Peer Perform with a $135 price target. After modeling in Merck's late-stage pipeline assets, accounting for label expansion opportunities, and factoring in prescriber feedback, the firm view the five-year revenue bridge as "attractive" and would argue the stock is "poised for a breakout" following accretive M&A and ahead of an attractive catalyst path.
Wolfe Research
Peer Perform -> Outperform
upgrade
$135
2026-01-08
Reason
Wolfe Research
Price Target
$135
2026-01-08
upgrade
Peer Perform -> Outperform
Reason
Wolfe Research upgraded Merck to Outperform from Peer Perform with a $135 price target.
About MRK
Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Company sells its human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. It sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. Its Animal Health segment discovers, develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species. Its products include KEYTRUDA (pembrolizumab) injection, for intravenous use; WELIREG (belzutifan) tablets, for oral use; Ohtuvayre (ensifentrine) and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
