Merck beats earnings estimates but misses revenue, maintains 2025 outlook despite analyst downgrades.

Merck & Co. (MRK) reported second-quarter earnings of $2.13 per share, exceeding estimates by $0.10, though revenue of $15.81 billion slightly missed expectations. The company maintained strong profitability with a 41.05% return on equity and 25.79% net margin, projecting full-year 2025 EPS of $8.87–8.97, while analysts forecast $9.01. Institutional investors including Davidson Trust Co., Fairman Group LLC, and TD Asset Management reduced their stakes in the quarter. The stock, trading at $84.82 with a market cap of $211.86 billion and a P/E ratio of 13.07, has a consensus "Hold" rating and a $105.00 average price target. Several firms adjusted their outlooks, with Wells Fargo lowering its price target to $90 and Morgan Stanley to $98, while Cantor Fitzgerald cut its FY2026 EPS forecast to $9.41.