Merck Stock Surges Despite Stable Revenue Growth
Over the past twelve months, Merck (MRK) saw its stock price rise by about 87%, climbing from $79 to around $147. However, this growth was not reflected in changes to revenue or profitability. While trailing twelve-month revenues reached $66.6 billion—up 4.6% and consistent with the three-year trend—the company's operating margin dropped significantly to 10.5%, well below its historical average of 22.4%. This decline is largely attributed to a one-time charge from acquiring Terns Pharmaceuticals for MK-4208, which cost $5.7 billion. Investor optimism appears driven by Merck's advancing pipeline and recent FDA approvals such as LIPFENDRA, the first oral PCSK9 inhibitor that showed significant cholesterol reduction in trials. Positive Phase III results from sac-TMT and tulisokibart also contributed to investor confidence. Despite a slight revenue growth slowdown for 2026, Merck's stock outperformed peers like Johnson & Johnson (JNJ) and Pfizer (PFE), which returned 56% and 23%, respectively. The market is paying not just for current performance but also future potential as evidenced by the company’s guidance. The next major event on September 21, 2026, will be an FDA decision regarding a label update for WINREVAIR from the HYPERION study.
Topics: FDA approval pipeline progress revenue growth stock performance