Merck, Pfizer Lift Full-Year Sales Outlooks Following Second-Quarter Beats
Merck (MRK) and Pfizer (PFE) raised their respective full-year sales outlooks on Tuesday, as both pharmaceutical giants logged better-than-expected sales for the second quarter.For 2026, Merck now expects revenue of $66.3 billion and $67.3 billion, compared with its prior guidance of $65.8 billion to $67.0 billion and the FactSet-polled consensus of $66.86 billion. The company cut its full-year adjusted earnings estimate to a range of $2.66 and $2.76, from $5.04 to $5.16, to account for charges of $2.43 per share for the acquisition of Terns Pharmaceuticals (TERN). Analysts expect non-GAAP EPS of $2.79.For the June quarter, Merck's sales rose 5% year over year to $16.61 billion, topping the consensus of $16.37 billion. The company swung to a second-quarter non-GAAP loss $0.13 per share due to the Terns acquisition charge, from EPS of $2.13 a year earlier, while analysts expected a loss of $0.27.In May, the company announced completion of the acquisition of Terns and flagged the one-time charge."We delivered growth in the quarter led by continued strength in oncology and animal health, along with increasing contributions from our diverse and compelling new products across an array of therapeutic areas," Merck Chief Financial Officer Caroline Litchfield said at an earnings call, according to a FactSet transcript.Pfizer narrowed its full-year revenue outlook to between $60.5 billion to $62.5 billion from the previous range of $59.5 billion to $62.5 billion, reflecting a $500 million increase at the midpoint. The company maintained its adjusted EPS guidance of $2.80 to $3. At midpoint the estimates are both below the consensus forecasts of $61.77 billion and $2.94, respectively.Pfizer's second-quarter sales grew 3% year over year to $15.03 billion, while analysts projected $14.4 billion. Adjusted EPS fell to $0.77 from $0.78 a year earlier but exceeded the Street's $0.68 forecast."Our launched and acquired products performed well, our obesity program is advancing with meaningful momentum and our oncology portfolio remains a source of strength," Pfizer CEO Albert Bourla said in a statement.Last week, AbbVie (ABBV) lowered its full-year earnings guidance to account for the expected dilution from its planned acquisition of Apogee Therapeutics (APGE), despite reporting stronger-than-expected second-quarter results.Last month, Johnson & Johnson (JNJ) raised its full-year outlook after reporting better-than-expected second-quarter results, driven by growth in its innovative medicine and medical device businesses. Bristol-Myers Squibb (BMY) also raised its full-year guidance after reporting second-quarter results.Merck shares of were advancing by 0.3% in Tuesday morning trade, with the stock up 22% so far this year. Pfizer was down 0.4% intraday and is up about 0.1% since the start of the year.Price: $128.40, Change: $+0.63, Percent Change: +0.49%
