# Beta Finch Podcast Script: Merck Q1 2026 Earnings
**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into Merck's Q1 2026 results, and wow - there's a lot to unpack here.
**JORDAN:** That's right, Alex. And before we jump in, I need to share our standard disclaimer. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.
**ALEX:** Thanks, Jordan. Now, let's talk about the headline numbers. Merck reported revenue of $16.3 billion for Q1, which represents 5% growth year-over-year, or 3% excluding foreign exchange impacts. But here's the kicker - they actually posted a loss of $1.28 per share.
**JORDAN:** Right, and that loss is entirely due to a massive one-time charge. Merck took a $9 billion hit related to their acquisition of Cidara Therapeutics. Without that charge, they would have been profitable. In fact, they raised their full-year guidance, which tells you management feels pretty good about the underlying business.
**ALEX:** Exactly. They bumped up their revenue guidance to between $65.8 billion and $67 billion for the full year, and raised their EPS guidance to $5.04 to $5.16. But Jordan, let's talk about what's really driving this growth - because it's not just KEYTRUDA anymore.
**JORDAN:** That's the big story here, Alex. Yes, KEYTRUDA sales were still strong at $8 billion, up 8%, but what caught my attention was how diversified their growth drivers are becoming. WINREVAIR, their pulmonary arterial hypertension drug, hit $525 million in sales. That's a relatively new product showing real traction.
**ALEX:** And then there's WELIREG, their oral HIF-2-alpha inhibitor, which saw 43% growth to $199 million. Management highlighted they have over 20 new products launching with what they called "blockbuster potential." CEO Rob Davis mentioned a potential commercial opportunity of over $70 billion by the mid-2030s from these new growth drivers alone.
**JORDAN:** Those are big numbers, Alex. But let's talk about some challenges too. GARDASIL sales dropped 22% to $1.1 billion, mainly due to lower demand in China and Japan. And their new RSV prevention drug ENFLONSIA had minimal sales in Q1, though that was expected due to seasonality.
**ALEX:** True, but management seemed confident about the RSV product ramping up in the second half of the year. What really stood out to me from the call was their focus on AI and partnerships. They announced a multi-year deal with Google Cloud for AI capabilities, plus expanded collaborations with Tempus AI and the Mayo Clinic.
**JORDAN:** That's a smart move, especially in drug development where AI could potentially accelerate research timelines. Speaking of their pipeline, they had some interesting updates. The FDA approved their HIV drug IDVYNSO, and they're expecting several priority reviews in the coming months for cancer treatments.
**ALEX:** The pipeline discussion was fascinating. Dr. Dean Li, their research chief, mentioned they have 17 Phase III studies ongoing for their antibody-drug conjugate sac-TMT, with 13 of those in "first mover" indications. That could be huge if those trials are successful.
**JORDAN:** And let's not forget the Terns Pharmaceutical acquisition they're working on. They're paying about $5.8 billion for TERN-701, a chronic myeloid leukemia drug candidate. Management thinks it has "multibillion-dollar commercial potential."
**ALEX:** During the Q&A, analysts were clearly focused on the pipeline readouts coming this year. There was a lot of discussion about their ophthalmology programs and cancer combination therapies. One thing that struck me was how confident management sounded about their diversification strategy.
**JORDAN:** Absolutely. CFO Caroline Litchfield mentioned
This episode includes AI-generated content.
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May 8 20269 mins