Q2 EPS Forecast for Merck & Co., Inc. Reduced by Analyst

Merck & Co., Inc. (NYSE:MRK) – Research analysts at Zacks Research decreased their Q2 2025 EPS estimates for Merck & Co., Inc. in a research note issued on Wednesday, February 26th. Zacks Research analyst S. Ganoria now anticipates that the company will post earnings per share of $2.19 for the quarter, down from their previous estimate of $2.42. The consensus estimate for Merck & Co., Inc.’s current full-year earnings is $9.01 per share. Zacks Research also issued estimates for Merck & Co., Inc.’s Q4 2025 earnings at $2.17 EPS, Q2 2026 earnings at $2.30 EPS, Q3 2026 earnings at $2.64 EPS and Q4 2026 earnings at $2.35 EPS.

Merck & Co., Inc. (NYSE:MRK) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.72 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.13). The company had revenue of $15.62 billion for the quarter, compared to the consensus estimate of $15.51 billion. Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The business’s revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.03 earnings per share.

Several other brokerages also recently commented on MRK. Citigroup reduced their price target on shares of Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, February 5th. Guggenheim lowered their price target on Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, February 12th. TD Cowen downgraded Merck & Co., Inc. from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $121.00 to $100.00 in a research note on Monday, February 10th. Wolfe Research began coverage on Merck & Co., Inc. in a report on Friday, November 15th. They issued a “peer perform” rating on the stock. Finally, BMO Capital Markets dropped their price objective on shares of Merck & Co., Inc. from $105.00 to $96.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 5th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, nine have given a buy rating and three have assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $116.39.

Merck & Co., Inc. Price Performance

MRK stock opened at $90.58 on Friday. Merck & Co., Inc. has a one year low of $81.04 and a one year high of $134.63. The firm has a 50-day moving average of $94.75 and a two-hundred day moving average of $103.59. The firm has a market capitalization of $229.13 billion, a PE ratio of 13.46, a P/E/G ratio of 0.77 and a beta of 0.38. The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79.

Merck & Co., Inc. declared that its Board of Directors has authorized a stock repurchase program on Tuesday, January 28th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to purchase up to 4.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its shares are undervalued.

Merck & Co., Inc. Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be paid a $0.81 dividend. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 dividend on an annualized basis and a yield of 3.58%. Merck & Co., Inc.’s payout ratio is presently 48.14%.

Insiders Place Their Bets

In related news, insider Cristal N. Downing sold 2,361 shares of the company’s stock in a transaction dated Thursday, February 6th. The stock was sold at an average price of $88.76, for a total value of $209,562.36. Following the completion of the sale, the insider now owns 7,085 shares in the company, valued at approximately $628,864.60. This represents a 24.99 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Inge G. Thulin bought 2,833 shares of the firm’s stock in a transaction dated Thursday, February 6th. The shares were bought at an average price of $88.25 per share, with a total value of $250,012.25. Following the completion of the transaction, the director now directly owns 2,933 shares in the company, valued at approximately $258,837.25. This trade represents a 2,833.00 % increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.09% of the company’s stock.

Institutional Trading of Merck & Co., Inc.

Several hedge funds have recently added to or reduced their stakes in MRK. Norges Bank acquired a new position in shares of Merck & Co., Inc. in the 4th quarter valued at approximately $3,479,799,000. Bank of New York Mellon Corp raised its holdings in shares of Merck & Co., Inc. by 29.7% during the fourth quarter. Bank of New York Mellon Corp now owns 24,213,537 shares of the company’s stock worth $2,408,763,000 after acquiring an additional 5,550,824 shares during the period. Wellington Management Group LLP boosted its stake in Merck & Co., Inc. by 6.5% in the 4th quarter. Wellington Management Group LLP now owns 80,742,030 shares of the company’s stock worth $8,032,217,000 after purchasing an additional 4,932,647 shares during the period. Northern Trust Corp raised its stake in shares of Merck & Co., Inc. by 16.8% in the 4th quarter. Northern Trust Corp now owns 31,377,107 shares of the company’s stock valued at $3,121,395,000 after purchasing an additional 4,511,742 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Merck & Co., Inc. by 63.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company’s stock valued at $1,151,642,000 after purchasing an additional 4,480,007 shares in the last quarter. Institutional investors and hedge funds own 76.07% of the company’s stock.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.