Zacks Research Issues Pessimistic Estimate for MRK Earnings

Merck & Co., Inc. (NYSE:MRK) – Analysts at Zacks Research reduced their Q1 2026 EPS estimates for shares of Merck & Co., Inc. in a research note issued to investors on Tuesday, April 1st. Zacks Research analyst S. Ganoria now expects that the company will post earnings of $2.29 per share for the quarter, down from their prior 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 posted its quarterly earnings data on Tuesday, February 4th. The company reported $1.72 earnings per share for the quarter, missing the consensus estimate of $1.85 by ($0.13). Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The business had revenue of $15.62 billion for the quarter, compared to analyst estimates of $15.51 billion. During the same period in the prior year, the firm posted $0.03 EPS. Merck & Co., Inc.’s revenue for the quarter was up 6.8% on a year-over-year basis.

A number of other brokerages have also issued reports on MRK. HSBC raised shares of Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 target price on the stock in a research report on Wednesday, December 4th. TD Cowen downgraded shares of Merck & Co., Inc. from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $121.00 to $100.00 in a report on Monday, February 10th. Truist Financial reiterated a “hold” rating and issued a $110.00 target price (down previously from $130.00) on shares of Merck & Co., Inc. in a research note on Wednesday, January 8th. Bank of America decreased their target price on Merck & Co., Inc. from $118.00 to $112.00 and set a “buy” rating on the stock in a research report on Wednesday, February 5th. Finally, Deutsche Bank Aktiengesellschaft cut Merck & Co., Inc. from a “buy” rating to a “hold” rating and cut their price target for the company from $128.00 to $105.00 in a report on Tuesday, February 18th. Eleven investment analysts have rated the stock with a hold rating, nine have issued a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $117.12.

Merck & Co., Inc. Stock Performance

Shares of NYSE MRK opened at $87.08 on Wednesday. Merck & Co., Inc. has a 12 month low of $81.04 and a 12 month high of $134.63. The company has a market cap of $219.95 billion, a P/E ratio of 12.94, a P/E/G ratio of 0.77 and a beta of 0.35. The business’s 50 day moving average is $91.57 and its two-hundred day moving average is $99.62. The company has a quick ratio of 1.15, a current ratio of 1.36 and a debt-to-equity ratio of 0.79.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Merck & Co., Inc. during the fourth quarter worth approximately $3,479,799,000. Bank of New York Mellon Corp lifted its holdings in Merck & Co., Inc. by 29.7% during the 4th quarter. Bank of New York Mellon Corp now owns 24,213,537 shares of the company’s stock worth $2,408,763,000 after buying an additional 5,550,824 shares in the last quarter. Wellington Management Group LLP boosted its position in Merck & Co., Inc. by 6.5% in the 4th quarter. Wellington Management Group LLP now owns 80,742,030 shares of the company’s stock valued at $8,032,217,000 after buying an additional 4,932,647 shares during the last quarter. Northern Trust Corp increased its stake in shares of Merck & Co., Inc. by 16.8% in the 4th quarter. Northern Trust Corp now owns 31,377,107 shares of the company’s stock valued at $3,121,395,000 after buying an additional 4,511,742 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of Merck & Co., Inc. by 63.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company’s stock worth $1,151,642,000 after acquiring an additional 4,480,007 shares during the last quarter. Institutional investors and hedge funds own 76.07% of the company’s stock.

Insiders Place Their Bets

In related news, insider Cristal N. Downing sold 2,361 shares of the stock in a transaction that occurred on Thursday, February 6th. The stock was sold at an average price of $88.76, for a total transaction of $209,562.36. Following the sale, the insider now directly owns 7,085 shares in the company, valued at $628,864.60. This represents a 24.99 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Inge G. Thulin purchased 2,833 shares of the company’s stock in a transaction that occurred on Thursday, February 6th. The shares were acquired at an average cost of $88.25 per share, with a total value of $250,012.25. Following the completion of the acquisition, the director now directly owns 2,933 shares in the company, valued at approximately $258,837.25. This represents a 2,833.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.09% of the company’s stock.

Merck & Co., Inc. Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Shareholders 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 yield of 3.72%. Merck & Co., Inc.’s dividend payout ratio (DPR) is presently 48.14%.

Merck & Co., Inc. declared that its board has initiated a stock repurchase plan on Tuesday, January 28th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

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.