Merck & Co Inc

merck.com

What Do They Do?

Sells prescription medicines and vaccines to health care organizations, and veterinary medicines, vaccines and services to veterinarians, animal producers and pet owners.

How Do They Make Money?

Customers pay for medicines, vaccines and animal-health products when the goods are delivered; some animal-health services are paid over the service contract.

revenue

Segment	Share	Revenue	How money arrives
Pharmaceutical segment Sold outright	89% FY2022: 88%		Sold outright
Animal Health Mix	9.8% FY2022: 9.4%		Mix

Who Are Their Customers?

Merck sells human medicines mainly to wholesalers, retailers, hospitals, government agencies and health plans, and vaccines to physicians, wholesalers, distributors and government entities. Animal-health buyers include veterinarians, distributors, producers, farmers and pet owners.

Do Revenues Turn Into Profits?

Yes. It kept 28 cents of every revenue dollar as net income in FY2025 and turned 19 cents into free cash flow.

Operating income, FY2025

34% of revenue

▲ +9% vs FY2024 ($20.2B, 32%)

Net income, FY2025

28% of revenue

▲ +7% vs FY2024 ($17.1B, 27%)

Free cash flow, FY2025

19% of revenue

▼ −32% vs FY2024 ($18.1B, 28%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +5%; vs $15.8B in Q2 FY2025
Net income: ▼ Now a loss; vs $4.4B in Q2 FY2025

Pharmaceutical share of revenue vs 88.9% in Q2 FY2025

Aug 4, 2026 Raises sales outlook Updated expected worldwide sales to $66.3 billion to $67.3 billion, from $65.8 billion to $67.0 billion.

Growing. Revenue grew 33% in 4 years, from $48.7B in FY2021 to $65B in FY2025, about 7% a year.

Subcutaneous cancer treatment The latest report says Merck launched Keytruda Qlex, a subcutaneous combination containing pembrolizumab; the older report describes Keytruda as an intravenous therapy.

Revenue over time

Pharmaceutical segment Animal Health

$100B$50B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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