Merck on Thursday topped third-quarter estimates and hiked its adjusted profit outlook, as its immunotherapy Keytruda, including a newer injectable form of the drug, showed stronger-than-expected sales. 

The pharmaceutical giant now expects adjusted earnings to be between $2.77 and $2.82 per share. That adjusted profit outlook is up from a previous range of $2.66 to $2.76 per share. The guidance now includes a one-time charge of $400 million, or 12 cents per share, related to its licensing agreement with the Chinese cancer drugmaker SciBrunch.

Merck also narrowed the low end of its 2026 revenue guidance, now expecting sales between $66.8 billion and $67.3 billion. That compares to a previous outlook of $66.3 billion to $67.3 billion. 

The company has been on a deal spree as it races to offset generic competition for Keytruda after key patents begin expiring in 2028.

Merck is also positioning the new form of the drug, Keytruda Qlex, as a cornerstone of its growth strategy. The goal is to transition patients from the original intravenous version to Qlex, considered a more convenient under-the-skin injection. This strategy allows the company to defend its market share and sustain Keytruda’s blockbuster sales beyond the original version’s loss of exclusivity.

Keytruda raked in $8.60 billion in sales for the quarter, beating the $7.73 billion that analysts were expecting, according to StreetAccount. That includes $830 million in sales for Qlex – the highest seen in a quarter since it launched in 2025. 

Analysts were expecting $649 million in sales, StreetAccount estimates said. The blowout quarter for the shot suggests it could soon eventually be a multibillion-dollar product annually.

Here’s what Merck reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $2.49 adjusted vs. $2.08 expected
• Revenue: $18.09 billion vs. $17.31 billion expected

The company posted a net income of $5.07 billion, or $2.04 per share, for the quarter. That compares with net income of $5.79 billion, or $2.32 per share, for the year-earlier period. 

Excluding acquisition and restructuring costs, Merck posted earnings of $2.49 per share for the third quarter.

Merck raked in $18.09 billion in revenue for the quarter, up 5% from the same period a year earlier.

Beyond Keytruda, Merck’s newer products also showed strong growth. 

Winrevair, which is used to treat a rare, deadly lung condition, generated $694 million in sales for the quarter, up 93% from the same period a year earlier. Analysts were expecting sales of $645 million. 

Meanwhile, the Gardasil vaccine, which prevents cancers from HPV, a very common sexually transmitted infection, drew about $2 billion in sales due to higher demand in the U.S. That tops the $1.76 billion in sales that analysts were expecting. 

That strong revenue comes after Merck last year grappled with elevated Gardasil inventory and weak demand for the vaccine in China. 

Meanwhile, Merck’s animal health business posted $1.68 billion in sales for the third quarter, which came in slightly below analysts’ estimates.