Erste Group Bank Issues Negative Estimate for MRK Earnings

Merck & Co., Inc. (NYSE:MRK) – Equities researchers at Erste Group Bank lowered their FY2026 earnings per share estimates for shares of Merck & Co., Inc. in a research report issued on Wednesday, February 18th. Erste Group Bank analyst H. Engel now anticipates that the company will post earnings per share of $5.13 for the year, down from their prior estimate of $5.14. The consensus estimate for Merck & Co., Inc.’s current full-year earnings is $9.01 per share. Erste Group Bank also issued estimates for Merck & Co., Inc.’s FY2027 earnings at $9.76 EPS.

Merck & Co., Inc. (NYSE:MRK) last issued its earnings results on Tuesday, February 3rd. The company reported $2.04 EPS for the quarter, beating analysts’ consensus estimates of $2.01 by $0.03. The business had revenue of $16.40 billion during the quarter, compared to analyst estimates of $16.19 billion. Merck & Co., Inc. had a return on equity of 45.22% and a net margin of 28.08%.Merck & Co., Inc.’s revenue was up 5.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.72 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 5.000-5.150 EPS.

Several other analysts have also weighed in on MRK. The Goldman Sachs Group lifted their target price on shares of Merck & Co., Inc. from $92.00 to $120.00 and gave the company a “buy” rating in a research report on Tuesday, December 2nd. Guggenheim raised their price target on shares of Merck & Co., Inc. from $122.00 to $140.00 and gave the stock a “buy” rating in a research note on Friday, February 6th. Morgan Stanley upped their price objective on Merck & Co., Inc. from $100.00 to $102.00 and gave the company an “equal weight” rating in a research note on Friday, December 12th. Scotiabank increased their target price on Merck & Co., Inc. from $105.00 to $120.00 and gave the stock a “sector outperform” rating in a report on Thursday, December 4th. Finally, Wells Fargo & Company raised their target price on Merck & Co., Inc. from $125.00 to $135.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 4th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $124.80.

Merck & Co., Inc. Trading Up 0.2%

Shares of Merck & Co., Inc. stock opened at $124.11 on Monday. Merck & Co., Inc. has a 52-week low of $73.31 and a 52-week high of $124.84. The firm has a market capitalization of $308.03 billion, a PE ratio of 17.05, a price-to-earnings-growth ratio of 2.40 and a beta of 0.28. 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’s fifty day moving average price is $111.65 and its two-hundred day moving average price is $96.63.

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

A number of hedge funds have recently added to or reduced their stakes in MRK. SG Trading Solutions LLC bought a new position in shares of Merck & Co., Inc. in the fourth quarter worth about $4,776,000. Beaird Harris Wealth Management LLC increased its holdings in shares of Merck & Co., Inc. by 35.9% in the fourth quarter. Beaird Harris Wealth Management LLC now owns 832 shares of the company’s stock valued at $88,000 after purchasing an additional 220 shares in the last quarter. Monetary Solutions Ltd bought a new position in Merck & Co., Inc. in the 4th quarter worth approximately $216,000. Phillip James Consulting Co. bought a new position in Merck & Co., Inc. in the 4th quarter worth approximately $85,000. Finally, Kera Capital Partners Inc. lifted its holdings in Merck & Co., Inc. by 9.1% during the 4th quarter. Kera Capital Partners Inc. now owns 19,258 shares of the company’s stock worth $2,124,000 after buying an additional 1,604 shares in the last quarter. Institutional investors own 76.07% of the company’s stock.

Insider Buying and Selling at Merck & Co., Inc.

In related news, insider Johannes Jacobus Oosthuizen sold 15,000 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $121.87, for a total transaction of $1,828,050.00. Following the completion of the sale, the insider directly owned 21,197 shares of the company’s stock, valued at $2,583,278.39. This trade represents a 41.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jennifer Zachary sold 121,573 shares of the business’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $119.15, for a total value of $14,485,422.95. Following the completion of the transaction, the executive vice president directly owned 68,916 shares in the company, valued at approximately $8,211,341.40. This represents a 63.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 320,176 shares of company stock worth $38,281,735 over the last 90 days. Company insiders own 0.09% of the company’s stock.

Merck & Co., Inc. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 7th. Investors 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 dividend on an annualized basis and a yield of 2.7%. Merck & Co., Inc.’s dividend payout ratio is 46.70%.

Key Merck & Co., Inc. News

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

• Positive Sentiment: Positive Phase 3 SMART trial results for ENFLONSIA (clesrovimab) in infants/children under 2 — expands the potential market for Merck’s RSV product and strengthens near-term growth prospects. Merck (MRK) Announces Positive Phase 3 SMART Trial Results for ENFLONSIA (Clesrovimab)
• Positive Sentiment: New Keytruda approvals/formulations (including subcutaneous option and additional indications) broaden dosing options and indications, supporting replacement revenue as competition increases. Merck RSV And KEYTRUDA Updates Refocus Attention On Valuation And Growth
• Positive Sentiment: Merck hit an annual high inside the Russell 1000 — technical/market-strength signal that complements fundamental newsflow. Merck (NYSE:MRK) Hits Annual High in Russell 1000
• Neutral Sentiment: Merck will present at the TD Cowen 46th Annual Health Care Conference — standard investor outreach that may provide management clarity but is not an immediate earnings driver. Merck to Participate in the TD Cowen 46th Annual Health Care Conference
• Neutral Sentiment: Analyst coverage and peer-comparison pieces show Merck is a relative outperformer but Wall Street remains cautiously optimistic — supports valuation but suggests limited near-term multiple expansion without more upside news. How Is Merck & Co.’s Stock Performance Compared to Other Healthcare Stocks?
• Negative Sentiment: Keytruda patent expiry (approaching 2028) is pushing Merck to split its human-health business and create a standalone cancer unit — a defensive move that signals meaningful future revenue pressure from biosimilars/generic competition. Market reaction has been muted, but the patent cliff remains the primary long-term risk to MRK’s top-line. Merck to create separate cancer business to offset Keytruda patent loss, WSJ reports

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.