Merck reported third-quarter earnings that surpassed Wall Street expectations, boosting its adjusted profit forecast as its cancer immunotherapy drug Keytruda, including the newer injectable variant called Qlex, posted impressive sales growth. The company now anticipates adjusted earnings between $2.77 and $2.82 per share, up from its prior range of $2.66 to $2.76. This updated guidance incorporates a one-time $400 million charge tied to a licensing agreement with Chinese drugmaker SciBrunch. Additionally, Merck tightened its 2026 revenue outlook to between $66.8 billion and $67.3 billion.

Keytruda remains a critical driver for Merck, generating $8.60 billion in revenue in the quarter, well above analysts’ expectations of $7.73 billion. Notably, the new Qlex injectable form of Keytruda earned $830 million, marking the highest quarterly sales since its 2025 launch and exceeding forecasts of $649 million. Merck is strategically focusing on transitioning patients from the original intravenous version to Qlex, which is a more convenient under-the-skin injection aimed at sustaining blockbuster sales beyond Keytruda’s patent expiration in 2028.

Beyond Keytruda, Merck's newer products also showed strong performance. Winrevair, a treatment for a rare lung disease, nearly doubled its sales year-over-year to $694 million, surpassing analyst estimates. The Gardasil vaccine, which targets HPV-related cancers, generated around $2 billion in sales driven by increased demand in the U.S., easily outpacing the expected $1.76 billion. Merck’s animal health division posted $1.68 billion in quarterly sales, slightly below analyst predictions.

Overall, Merck’s third-quarter revenue reached $18.09 billion, up 5% from a year earlier and beating the forecast of $17.31 billion. The company’s adjusted earnings per share came in at $2.49, surpassing estimates of $2.08. Although net income fell from $5.79 billion a year ago to $5.07 billion this quarter, excluding acquisition and restructuring costs helped boost per-share earnings. Merck’s continued focus on innovation and strategic new drug introductions fuels optimism about sustaining strong growth in a competitive pharmaceutical landscape.