Zacks Research Cuts Earnings Estimates for Merck & Co., Inc.

Merck & Co., Inc. (NYSE:MRK) – Stock analysts at Zacks Research decreased their Q1 2026 EPS estimates for Merck & Co., Inc. in a report released on Tuesday, April 1st. Zacks Research analyst S. Ganoria now expects that the company will post earnings per share of $2.29 for the quarter, down from their previous forecast of $2.30. 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 Q2 2026 earnings at $2.29 EPS, Q3 2026 earnings at $2.63 EPS, FY2026 earnings at $9.55 EPS, Q1 2027 earnings at $2.45 EPS and FY2027 earnings at $10.26 EPS.

Merck & Co., Inc. (NYSE:MRK) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 net margin of 26.67% and a return on equity of 45.35%. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.03 earnings per share.

A number of other equities analysts have also weighed in on the company. Citigroup decreased their target price on Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, February 5th. Truist Financial reaffirmed a “hold” rating and issued a $110.00 target price (down from $130.00) on shares of Merck & Co., Inc. in a research note on Wednesday, January 8th. TD Securities cut shares of Merck & Co., Inc. from a “buy” rating to a “hold” rating and cut their price target for the stock from $121.00 to $100.00 in a research note on Monday, February 10th. Guggenheim lowered their price objective on shares of Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday, February 12th. Finally, TD Cowen lowered shares of Merck & Co., Inc. from a “buy” rating to a “hold” rating and cut their target price for the stock from $121.00 to $100.00 in a research report on Monday, February 10th. Eleven analysts have rated the stock with a hold rating, nine have assigned a buy rating and three have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $117.12.

Merck & Co., Inc. Stock Performance

Merck & Co., Inc. stock opened at $86.32 on Wednesday. The firm has a market capitalization of $218.05 billion, a PE ratio of 12.83, a price-to-earnings-growth ratio of 0.77 and a beta of 0.40. Merck & Co., Inc. has a 1-year low of $81.04 and a 1-year high of $134.63. The firm’s 50 day simple moving average is $91.18 and its 200 day simple moving average is $99.44. 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. announced that its board has authorized a stock repurchase program on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Merck & Co., Inc. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 7th. Stockholders of record on Monday, March 17th will be given 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 dividend yield of 3.75%. Merck & Co., Inc.’s dividend payout ratio is currently 48.14%.

Insider Activity

In related news, insider Cristal N. Downing sold 2,361 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The shares were sold at an average price of $88.76, for a total value of $209,562.36. Following the sale, the insider now owns 7,085 shares in the company, valued at $628,864.60. The trade was a 24.99 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Inge G. Thulin acquired 2,833 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The shares were bought at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the completion of the transaction, the director now 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. Insiders own 0.09% of the company’s stock.

Institutional Trading of Merck & Co., Inc.

Large investors have recently bought and sold shares of the company. Principal Financial Group Inc. grew its position in shares of Merck & Co., Inc. by 8.9% in the 3rd quarter. Principal Financial Group Inc. now owns 6,355,950 shares of the company’s stock worth $721,782,000 after buying an additional 518,270 shares during the period. Edgestream Partners L.P. grew its holdings in Merck & Co., Inc. by 115.3% in the third quarter. Edgestream Partners L.P. now owns 20,996 shares of the company’s stock worth $2,384,000 after purchasing an additional 11,246 shares during the period. Concentric Capital Strategies LP increased its stake in shares of Merck & Co., Inc. by 70.8% during the third quarter. Concentric Capital Strategies LP now owns 13,123 shares of the company’s stock valued at $1,490,000 after purchasing an additional 5,439 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Merck & Co., Inc. by 50.7% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,926,675 shares of the company’s stock valued at $218,793,000 after purchasing an additional 647,882 shares in the last quarter. Finally, Itau Unibanco Holding S.A. lifted its holdings in shares of Merck & Co., Inc. by 63.3% during the third quarter. Itau Unibanco Holding S.A. now owns 511 shares of the company’s stock valued at $58,000 after purchasing an additional 198 shares during the last quarter. 76.07% of the stock is owned by institutional investors.

Merck & Co., Inc. Company Profile

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.