$MRK

Merck & Co. Inc.

CIK:0000310158|SEC Filings

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Sales	$ 16,607	$ 15,806	$ 32,893	$ 31,335
Costs, Expenses and Other
Cost of sales	4,395	3,557	8,590	6,976
Selling, general and administrative	2,904	2,649	5,604	5,202
Research and development	9,741	4,048	22,333	7,669
Restructuring costs	151	560	346	629
Other (income) expense, net	99	(7)	237	(43)
Total Costs, Expenses and Other	17,290	10,807	37,110	20,433
(Loss) Income Before Taxes	(683)	4,999	(4,217)	10,902
Income Tax Provision	654	571	1,363	1,388
Net (Loss) Income	(1,337)	4,428	(5,580)	9,514
Less: Net (Loss) Income Attributable to Noncontrolling Interests	(2)	1	(5)	8
Net (Loss) Income Attributable to Merck & Co., Inc.	$ (1,335)	$ 4,427	$ (5,575)	$ 9,506
Basic (Loss) Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ (0.54)	$ 1.76	$ (2.26)	$ 3.78
(Loss) Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ (0.54)	$ 1.76	$ (2.26)	$ 3.77

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net (loss) income	$ (5,580)	$ 9,514
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization	1,915	1,198
Depreciation	1,180	1,020
Income from investments in equity securities, net	(411)	(189)
Charges for research and development asset acquisitions	13,811	0
Deferred income taxes	(859)	(634)
Share-based compensation	483	411
Other	(61)	444
Net changes in assets and liabilities	(1,190)	(5,971)
Net Cash Provided by Operating Activities	9,288	5,793
Cash Flows from Investing Activities
Capital expenditures	(1,884)	(2,092)
Purchases of securities and other investments	(522)	(1,207)
Proceeds from sales of securities and other investments	1,303	1,057
Acquisition of Cidara Therapeutics, Inc., net of cash acquired	(8,779)	0
Acquisition of Terns Pharmaceuticals, Inc., net of cash acquired	(5,842)	0
Other	(88)	(15)
Net Cash Used in Investing Activities	(15,812)	(2,257)
Cash Flows from Financing Activities
Proceeds from term loan	6,000	0
Payments on term loan	(6,000)	0
Proceeds from issuance of debt	5,956	0
Payments on debt	(1,145)	(2,500)
Dividends paid to stockholders	(4,249)	(4,127)
Purchases of treasury stock	(1,631)	(2,509)
Proceeds from exercise of stock options	200	31
Other	(350)	(206)
Net Cash Used in Financing Activities	(1,219)	(9,311)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(56)	530
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(7,799)	(5,245)
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes restricted cash of $125 and $76 at January 1, 2026 and 2025, respectively, included in Other current assets)	14,690	13,318
Cash, Cash Equivalents and Restricted Cash at End of Period (includes restricted cash of $42 and $66 at June 30, 2026 and 2025, respectively, included in Other current assets)	$ 6,891	$ 8,073

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 6,849	$ 14,565
Short-term investments	292	0
Accounts receivable (net of allowance for doubtful accounts of $108 in 2026 and $97 in 2025)	12,564	11,775
Inventories (excludes inventories of $6,381 in 2026 and $5,681 in 2025 classified in Other assets - see Note 6)	6,207	6,658
Other current assets	10,767	10,518
Total current assets	36,679	43,516
Investments	1,222	956
Property, Plant and Equipment, at cost, net of accumulated depreciation of $22,729 in 2026 and $21,914 in 2025	25,737	25,316
Goodwill	21,582	21,579
Other Intangibles, Net	24,978	26,681
Other Assets	19,604	18,818
Total Assets	129,802	136,866
Current Liabilities
Loans payable and current portion of long-term debt	2,825	2,589
Trade accounts payable	3,827	4,404
Accrued and other current liabilities	14,725	14,468
Income taxes payable	4,224	4,726
Dividends payable	2,130	2,140
Total current liabilities	27,731	28,327
Long-Term Debt	51,081	46,750
Deferred Income Taxes	1,433	1,439
Other Noncurrent Liabilities	7,573	7,688
Merck & Co., Inc. Stockholders’ Equity
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2026 and 2025	1,788	1,788
Other paid-in capital	44,950	45,029
Retained earnings	63,269	73,075
Accumulated other comprehensive loss	(3,942)	(4,287)
Stockholders' equity before deduction for treasury stock	106,065	115,605
Less treasury stock, at cost: 1,108,460,187 shares in 2026 and 1,102,476,756 shares in 2025	64,132	62,999
Total Merck & Co., Inc. stockholders’ equity	41,933	52,606
Noncontrolling Interests	51	56
Total equity	41,984	52,662
Liabilities and Equity	$ 129,802	$ 136,866