FirmAtlas
Company handbook · MRK · Prepared by FirmAtlas · firmatlas.app · printed 2026-10-17
MRK · CIK 310158 · LATEST FILING: 10-Q JUN '26 · FILED AUG 7, 2026
Merck & Co., Inc.
$145.95
+0.76 (+0.52%)
Close, Oct 16, 2026 · 52-week $82–157
Last fiscal year
Merck & Co., Inc. reported revenue of $65.0B for the year ended Dec 31, 2025 (FY25), up 1.3% from FY24. Net income was $18.3B, operating cash flow $16.5B and free cash flow $12.4B. Source: 10-K filed Feb 24, 2026.
Market cap
$365.9B
P/E
115.3
EV/EBITDA
15.9x
P/B
8.7
Div yield
2.33%
ROIC
24.5%
Revenue 1Y
1.3%/yr
EPS 1Y
8.0%/yr
Shares 1Y
−1%
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Median
Daily closes, split-adjusted · ratios at each fiscal year end
Company
CEORobert M. Davis
HQRahway, NJ
AuditorPricewaterhouseCoopers LLP
Employees75,000
Year endsDecember
Revenue by segment · FY25
Pharmaceuticalsegment90%
Animal Healthsegment10%
Compounded growth & averages
10Y
5Y
3Y
TTM
Share price
8.9%
13.3%
11.9%
73.9%
Upgrade to see 10 years
Share price: yearly compound rate of the traded close; the last column is the past year.
Where the cash went · FY24–FY25
$39.9B deployed
Capex
$7.5B
18.7%
Acquisitions
$10.0B
25.1%
Dividends
$16.0B
40.1%
Buybacks
$6.4B
16.0%
Operating cash flow over the period: $37.9B. Total debt changed by +$12.1B. R&D of $33.7B is already inside operating costs.
Growth engines
How much of the profit growth came from new investment, and how much from running the business better.
Upgrade to see 10 years
Financials
Last 2 years · Upgrade to see 10 years · USD millions · each year opens its 10-K · change vs previous year
Last 4 quarters · USD millions · quarter-end month shown · change vs same quarter a year earlier
TTM = the last four quarters, to Jun '26. Balance-sheet rows show that latest quarter. “—” where the quarters do not add up to the annual figures. No TTM for cash: our quarterly rows do not hold short-term investments yet, and annual cash includes them.
Income
Revenue
64,168
65,011+1.3%
66,569
YoY
+1.3%
Gross profit
48,975
48,629−0.7%
48,573
Gross margin
76.3%
74.8%−1.5 pp
—
Operating income
20,221
22,107+9.3%
—
Operating margin
31.5%
34.0%+2.5 pp
—
EBITDA
22,325
25,152+12.7%
—
EBITDA margin
34.8%
38.7%+3.9 pp
—
Interest expense
1,271
1,357+6.8%
—
Interest coverage
17.56x
18.54x+0.97x
—
Net income
17,117
18,254+6.6%
3,173
YoY
+6.6%
Net margin
26.7%
28.1%+1.4 pp
—
EPS (diluted, $)
6.74
7.28+8.0%
1.24
YoY
+8.0%
Balance sheet
Total assets
117,106
136,866+16.9%
129,802
Cash & short-term investments
13,765
14,690+6.7%
—
Accounts receivable
10,278
11,775+14.6%
—
Inventory
6,109
6,658+9.0%
—
Net PP&E
23,779
25,316+6.5%
—
Other assets
63,175
78,427+24.1%
—
Total liabilities
70,793
84,260+19.0%
87,869
Accounts payable
4,079
4,404+8.0%
—
Total debt
36,962
49,050+32.7%
51,081
Other liabilities
29,752
30,806+3.5%
—
Shareholders’ equity
46,313
52,606+13.6%
41,933
Total liabilities = total assets − shareholders’ equity, so it includes minority interest where a company has one.
Cash flow statement · as filed
Cash from operations
21,468
16,472−23.3%
19,967
Net income
17,133
18,263+6.6%
—
Depreciation & amortization
2,104
3,045+44.7%
—
Stock-based compensation
761
820+7.8%
—
Working capital & other
1,470
(5,656)−484.8%
—
Cash from investing
(7,734)
(13,741)n/m
—
Capex
(3,372)
(4,112)n/m
—
Acquisitions
0
(10,042)n/m
—
Investments bought
(519)
(1,207)n/m
—
Other investing
(3,843)
1,620n/m
—
Cash from financing
(7,032)
(1,922)n/m
—
Debt raised
3,599
13,880+285.7%
—
Debt repaid
(1,290)
(2,503)n/m
—
Dividends
(7,840)
(8,176)n/m
—
Buybacks
(1,306)
(5,084)n/m
—
Shares issued
177
92−48.0%
—
Other financing
(372)
(131)n/m
—
Net change in cash
6,409
1,372−78.6%
—
Free cash flow (OCF − capex)
18,096
12,360−31.7%
16,063
Where the cash went
Operating cash flow
21,468
16,472−23.3%
19,967
Reinvested in the business
3,372
14,154+319.8%
—
% of operating cash flow
15.7%
85.9%
Capex
3,372
4,112+21.9%
3,904
Acquisitions
0
10,042n/m
—
R&D (memo, already in costs)
17,938
15,789−12.0%
—
Free cash flow
18,096
12,360−31.7%
16,063
YoY
−31.7%
Returned to shareholders
9,146
13,260+45.0%
—
% of free cash flow
50.5%
107.3%
Dividends
7,840
8,176+4.3%
—
Buybacks
1,306
5,084+289.3%
—
Change in total debt
—
12,088
—
Cash left over
—
1,146
—
FCF conversion (FCF ÷ net income)
105.7%
67.7%−38.0 pp
—
Owner earnings
—
15,466
—
Owner earnings margin
—
23.8%
—
Buyback yield
0.5%
1.9%+1.4 pp
—
Returns & ratios
ROIC (all capital)
25.0%
24.5%−0.5 pp
—
ROIC (operating)
48.2%
50.8%+2.7 pp
—
Net debt / EBITDA
1.04x
1.37x+0.33x
—
Debt / equity
0.80x
0.93x+0.13x
—
Cash conversion cycle (days)
107
116+9 d
—
ROE
37.0%
34.7%−2.3 pp
—
ROA
14.6%
13.3%−1.3 pp
—
ROCE
22.8%
20.4%−2.4 pp
—
NOPAT
17,378
19,165+10.3%
—
Invested capital (operating)
36,087
39,345+9.0%
—
Invested capital (all)
69,510
86,966+25.1%
—
Reinvestment rate
—
17.0%
—
Debtor days
58
66+8 d
—
Inventory days
147
148+2 d
—
Days payable
98
98+0 d
—
Income
Sep '25
Dec '25
Mar '26
Jun '26
Revenue
17,276
16,400
16,286
16,607
vs year-ago quarter
Gross profit
13,421
10,849
12,091
12,212
Gross margin
77.7%
66.2%
74.2%
73.5%
Net income
5,785
2,963
(4,240)
(1,335)
vs year-ago quarter
Net margin
33.5%
18.1%
−26.0%
−8.0%
EPS (diluted, $)
2.32
1.18
−1.72
−0.54
vs year-ago quarter
Balance sheet
Sep '25
Dec '25
Mar '26
Jun '26
Total assets
129,546
136,866
128,685
129,802
Cash & equivalents
18,260
14,690
5,398
6,891
Total debt
39,969
49,050
46,673
51,081
Shareholders’ equity
51,850
52,606
45,878
41,933
Cash flow
Sep '25
Dec '25
Mar '26
Jun '26
Operating cash flow
7,822
2,857
3,918
5,370
Capex
987
1,033
991
893
Free cash flow
6,835
1,824
2,927
4,477
vs year-ago quarter