MRKNYSEPharmaceutical PreparationsFiscal year ends December 31
Merck & Co., Inc.
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 7, 2026
$143.63−2.32 (-1.59%)
Close on Oct 19, 2026
- Market cap
- $354.77B
- P/E (TTM)
- 114.9
- Dividend yield
- 2.28%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
74.8%+7.6 pts over 5 years
Net margin
28.1%+11.1 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +1.3% | +3.1% | +9.4% | +5.1% | |
| Gross profit | -0.7% | +5.1% | +11.8% | +7.1% | |
| Net income | +6.6% | +7.9% | +20.9% | +15.2% | |
| EPS, diluted | +8.0% | +8.4% | +21.2% | +16.7% | |
| Free cash flow | -31.7% | -5.6% | +31.1% | +0.9% | |
| Dividend per share | +5.1% | +5.4% | +5.8% | +6.1% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 9.2% | 27.6% | 36.9% | |
| Return on assets | 4.0% | 8.0% | 14.4% | |
| Current ratio | 1.78 | 1.02 | 1.54 | |
| Debt to equity | 0.62 | 1.26 | 0.94 | |
| Inventory turnover | 2.9× | 2.4× | 2.6× | |
| Capex to revenue | 4.1% | 10.7% | 6.3% | |
| Diluted shares | 2.79B | 2.54B | 2.51B |
Where the cash went
Fiscal 2021 to 2025, five years combined
Merck generated $83.16B from operations and spent $65.84B on capital expenditure, dividends and share buybacks. 31% of that went back into the business.
Generated
$83.16B
Used
$65.84B
Capital expenditure$20.18B31%Dividends$37.08B56%Share buybacks$8.58B13%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin28.1%
×Asset turnover0.51×
×Equity multiplier2.57×
=Return on equity, FY202536.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 28.1% | 0.51× | 2.57× | 36.9% |
| FY2024 | 26.7% | 0.57× | 2.67× | 40.8% |
| FY2023 | 0.6% | 0.56× | 2.58× | 0.9% |
| FY2022 | 24.5% | 0.55× | 2.55× | 34.5% |
| FY2021 | 26.8% | 0.49× | 3.11× | 41.1% |
| FY2020 | 17.0% | 0.47× | 3.44× | 27.6% |
| FY2019 | 25.2% | 0.47× | 3.18× | 37.4% |
| FY2018 | 14.7% | 0.50× | 2.79× | 20.4% |
| FY2017 | 6.0% | 0.44× | 2.46× | 6.4% |
| FY2016 | 9.8% | 0.40× | 2.32× | 9.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
4of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$18.25B
- Cash generatingOperating cash flow above zero$16.47B
- Return on assets improvedROA up on the prior year16.0% → 15.6%
- Earnings backed by cashOperating cash flow above net income$16.47B vs $18.25B
- Less leverageLong-term debt to assets fell29.4% → 34.2%
- Better liquidityCurrent ratio rose1.36 → 1.54
- No dilutionShare count did not rise2.54B → 2.51B
- Gross margin improvedGross margin up on the prior year76.32% → 74.80%
- More efficientAsset turnover rose0.60 → 0.56