Merck & Co. and Eli Lilly reported third-quarter results on Thursday, with both beating Wall Street estimates but diverging on forward profit guidance. Merck shares rose about 3% to $145.40 in premarket trading, while Eli Lilly stock has climbed more than 50% from its year-to-date low.
Merck posted adjusted earnings of $2.49 per share on $18.1 billion in sales, surpassing forecasts of $2.09 and roughly $17.3 billion. Revenue grew about 5% year over year, or 4% on a constant-currency basis. Pharmaceuticals generated $16.2 billion, animal health added $1.7 billion, and Keytruda brought in $8.6 billion, including $830 million from subcutaneous Keytruda QLex. Winrevair sales nearly doubled to $694 million, while Gardasil grew 14% excluding currency to about $2 billion.
Merck raised its full-year revenue outlook for the third time this year to $66.8 billion–$67.3 billion, from $66.3 billion–$67.3 billion, and lifted adjusted EPS guidance to $2.77–$2.82 from $2.66–$2.76. The outlook includes a 12-cent one-time charge tied to a license deal with Shanghai’s SciBrunch. Investors remain focused on the 2028 Keytruda patent expiration, with Januvia already showing a 39% sales decline after losing protection in May. Goldman Sachs analyst Asad Haider said attention is on next year, when Merck has signaled softer results, and pointed to late 2026 and early 2027 clinical updates as catalysts. Moderna shares were up about 3% on Thursday.
Eli Lilly reported sales of $24.4 billion and adjusted EPS of $7.48, beating expectations. Management raised full-year revenue guidance by $5.5 billion to $91 billion, but trimmed the adjusted profit outlook to about $35.50 per share at the midpoint, citing acquisition-related research charges. Sales volumes rose 53%, offsetting a 15% decline in realized prices, and adjusted gross margin improved year over year. Mounjaro and Zepbound accounted for roughly two-thirds of revenue. The oral obesity pill Foundayo generated $184 million, below expectations, and the quarter included about $900 million in milestone and rebate adjustments.
