Merck and Pfizer beat Q2 estimates, raise revenue guidance

Merck and Pfizer both reported second-quarter earnings results that exceeded analyst estimates on Tuesday, with each company adjusting its full-year financial guidance upward.

Merck beat second-quarter estimates and raised its 2026 revenue outlook to between $66.3 billion and higher, citing strong growth from a slate of new products. The pharmaceutical company is racing to offset generic competition for several drugs, including Type 2 diabetes medications Januvia and Janumet, which face generic competition later this year, and blockbuster immunotherapy Keytruda, which faces patent expiration in 2028.

However, Merck cut its profit guidance due to a charge tied to its acquisition of biotech company Terns Pharmaceuticals. The company has been on an acquisition spree as it seeks to replace revenue lost to generic competition and patent expirations.

Pfizer reported second-quarter results that topped estimates and raised the low end of its full-year revenue guidance. The company cited an expected $1.5 billion bump in sales from its non-Covid products, including the drug Eliquis. Pfizer is now expecting full-year revenue to total between $60.5 billion and $62.5 billion, compared to a previous outlook.

Pfizer also revised its full-year revenue expectation for its Covid products downward. The company now anticipates its Covid vaccine and antiviral pill Paxlovid will generate $4 billion in sales, down from around $5 billion previously.

Additionally, Pfizer announced $2.5 billion in additional savings from two separate cost-cutting programs. These savings are expected to be achieved starting in 2027 and continuing through 2029.