Earnings call briefThird-quarter 2026

Merck says 2027 will be a year of investment with moderate revenue growth

Merck said more than $2 billion of generic and loss-of-exclusivity headwinds in 2027 will partly offset growth from new launches and animal health.

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On its third-quarter call, Chief Financial Officer Caroline Litchfield said Merck expects 2027 to be a year of investment behind its pipeline and launches, with moderate top-line growth. Merck expects underlying operating expenses to increase at a mid to high single digit rate.

The company said gross margin will rise as a Keytruda royalty rolls off.

Quotes from the call

“...in 2027, we expect moderate top line growth, and that is as a result of the strong contributions we expect from our new product launches, as well as animal health, that will be partially offset by more than $2 billion of headwinds...”

Caroline Litchfield, Chief Financial Officer

Key facts from the call

Expected 2027 revenue outlook
Moderate top-line growth
Expected 2027 generic and loss-of-exclusivity headwinds
More than $2 billion
Expected 2027 underlying operating expense growth
Mid to high single digit rate

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Source: Merck's third-quarter 2026 earnings call, October 29, 2026.

Written by GetSignal with AI from the company's earnings call.

Not investment advice.

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