\n| \n 2026\u00a0<\/b><\/p>\n<\/td>\n | \n 2025\u00a0<\/b><\/p>\n<\/td>\n | \n Change\u00a0<\/b><\/p>\n<\/td>\n | \n Change Ex-\u00a0
\n
Exchange\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSales<\/p>\n<\/td>\n | \n \n$18,085\u00a0<\/p>\n<\/td>\n | \n \n$17,276\u00a0<\/p>\n<\/td>\n | \n \n5%\u00a0<\/p>\n<\/td>\n | \n \n4%\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGAAP net income2<\/sup><\/p>\n<\/td>\n| \n \n5,065\u00a0<\/p>\n<\/td>\n | \n \n5,785\u00a0<\/p>\n<\/td>\n | \n \n-12%\u00a0<\/p>\n<\/td>\n | \n \n-14%\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-GAAP net income that excludes certain items2,3*<\/sup><\/p>\n<\/td>\n| \n \n6,159\u00a0<\/p>\n<\/td>\n | \n \n6,448\u00a0<\/p>\n<\/td>\n | \n \n-4%\u00a0<\/p>\n<\/td>\n | \n \n-5%\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGAAP EPS<\/p>\n<\/td>\n | \n \n2.04\u00a0<\/p>\n<\/td>\n | \n \n2.32\u00a0<\/p>\n<\/td>\n | \n \n-12%\u00a0<\/p>\n<\/td>\n | \n \n-13%\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-GAAP EPS that excludes certain items3*<\/sup><\/p>\n<\/td>\n| \n \n2.49\u00a0<\/p>\n<\/td>\n | \n \n2.58\u00a0<\/p>\n<\/td>\n | \n \n-3%\u00a0<\/p>\n<\/td>\n | \n \n-5%\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n*Refer to table on page 7.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFor the third quarter of 2026, Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) assuming dilution was $2.04 and non-GAAP EPS was $2.49. Both GAAP and non-GAAP EPS in the third quarter of 2026 include a one-time charge of $0.12 per share related to a global license agreement with SciBrunch Therapeutics Co., Ltd. (SciBrunch). Both GAAP and non-GAAP EPS in the third quarter of 2025 include a charge of $0.10 per share for a milestone payment to LaNova Medicines Ltd. (LaNova, acquired by Sino Biopharmaceutical Limited) associated with the technology transfer for MK-2010.<\/p>\n \nNon-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in the third quarter of 2025 also excludes tax expense relating to audit reserve adjustments.<\/p>\n \nYear-to-date results can be found in the attached tables.<\/p>\n Third-Quarter Sales Performance
\n
<\/span><\/b>The following table reflects sales of the Company\u2019s top products and significant performance drivers.<\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Third Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n$ in millions<\/p>\n<\/td>\n | \n 2026\u00a0<\/b><\/p>\n<\/td>\n | \n 2025\u00a0<\/b><\/p>\n<\/td>\n | \n Change\u00a0<\/b><\/p>\n<\/td>\n | \n Change Ex-\u00a0
\n
Exchange\u00a0<\/b><\/p>\n<\/td>\n | \n Commentary<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nTotal Sales<\/p>\n<\/td>\n | \n \n$18,085\u00a0<\/p>\n<\/td>\n | \n \n$17,276\u00a0<\/p>\n<\/td>\n | \n \n5%\u00a0<\/p>\n<\/td>\n | \n \n4%\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPharmaceutical<\/p>\n<\/td>\n | \n \n16,268\u00a0<\/p>\n<\/td>\n | \n \n15,611\u00a0<\/p>\n<\/td>\n | \n \n4%\u00a0<\/p>\n<\/td>\n | \n \n4%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily driven by growth in KEYTRUDA\/KEYTRUDA QLEX, WINREVAIR, GARDASIL\/GARDASIL 9, WELIREG, ENFLONSIA and the inclusion of OHTUVAYRE sales. Growth benefited from the timing of purchases by approximately $550 million. Growth was partially offset by declines in BRIDION, JANUVIA\/JANUMET and LAGEVRIO, as well as lower alliance revenue related to Koselugo.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nKEYTRUDA\/
\n
KEYTRUDA QLEX<\/p>\n<\/td>\n | \n \n8,601\u00a0<\/p>\n<\/td>\n | \n \n8,147\u00a0<\/p>\n<\/td>\n | \n \n6%\u00a0<\/p>\n<\/td>\n | \n \n6%\u00a0<\/p>\n<\/td>\n | \n \nGrowth primarily driven by strong global uptake in earlier-stage indications including triple-negative breast cancer, cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Timing of wholesaler purchases unfavorably affected sales in the U.S. but was largely offset by a benefit from increased inventory in the channel. Sales of KEYTRUDA QLEX were $830 million.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGARDASIL\/
\n
GARDASIL 9<\/p>\n<\/td>\n | \n \n1,995\u00a0<\/p>\n<\/td>\n | \n \n1,749\u00a0<\/p>\n<\/td>\n | \n \n14%\u00a0<\/p>\n<\/td>\n | \n \n14%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily due to higher sales in the U.S. reflecting favorable public-sector purchasing patterns and higher net pricing.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPROQUAD, M-M-R II and VARIVAX<\/p>\n<\/td>\n | \n \n730\u00a0<\/p>\n<\/td>\n | \n \n684\u00a0<\/p>\n<\/td>\n | \n \n7%\u00a0<\/p>\n<\/td>\n | \n \n7%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily due to higher demand in certain European markets.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWINREVAIR<\/p>\n<\/td>\n | \n \n694\u00a0<\/p>\n<\/td>\n | \n \n360\u00a0<\/p>\n<\/td>\n | \n \n93%\u00a0<\/p>\n<\/td>\n | \n \n94%\u00a0<\/p>\n<\/td>\n | \n \nGrowth primarily reflects higher demand and favorable wholesaler and specialty pharmacy purchasing patterns in the U.S., as well as launch uptake in certain international markets, particularly in Europe and Japan.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nJANUVIA\/JANUMET<\/p>\n<\/td>\n | \n \n380\u00a0<\/p>\n<\/td>\n | \n \n624\u00a0<\/p>\n<\/td>\n | \n \n-39%\u00a0<\/p>\n<\/td>\n | \n \n-39%\u00a0<\/p>\n<\/td>\n | \n \nDecline primarily driven by lower demand due to generic competition following loss of market exclusivity in the U.S.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLynparza*<\/p>\n<\/td>\n | \n \n352\u00a0<\/p>\n<\/td>\n | \n \n379\u00a0<\/p>\n<\/td>\n | \n \n-7%\u00a0<\/p>\n<\/td>\n | \n \n-7%\u00a0<\/p>\n<\/td>\n | \n \nDecline primarily due to lower net pricing in the U.S. and lower demand and pricing in China.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPREVYMIS<\/p>\n<\/td>\n | \n \n347\u00a0<\/p>\n<\/td>\n | \n \n266\u00a0<\/p>\n<\/td>\n | \n \n30%\u00a0<\/p>\n<\/td>\n | \n \n31%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily due to higher demand globally.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWELIREG<\/p>\n<\/td>\n | \n \n307\u00a0<\/p>\n<\/td>\n | \n \n196\u00a0<\/p>\n<\/td>\n | \n \n56%\u00a0<\/p>\n<\/td>\n | \n \n58%\u00a0<\/p>\n<\/td>\n | \n \nGrowth primarily driven by higher demand in the U.S. and continued launch uptake in international markets, particularly in Japan.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLenvima*<\/p>\n<\/td>\n | \n \n287\u00a0<\/p>\n<\/td>\n | \n \n258\u00a0<\/p>\n<\/td>\n | \n \n11%\u00a0<\/p>\n<\/td>\n | \n \n11%\u00a0<\/p>\n<\/td>\n | \n \nGrowth primarily due to higher demand in the U.S.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCAPVAXIVE<\/p>\n<\/td>\n | \n \n263\u00a0<\/p>\n<\/td>\n | \n \n244\u00a0<\/p>\n<\/td>\n | \n \n8%\u00a0<\/p>\n<\/td>\n | \n \n7%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, partially offset by lower sales in the U.S. reflecting lower adult pneumococcal vaccination rates and lower net pricing.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nENFLONSIA<\/p>\n<\/td>\n | \n \n187\u00a0<\/p>\n<\/td>\n | \n \n79\u00a0<\/p>\n<\/td>\n | \n \n138%\u00a0<\/p>\n<\/td>\n | \n \n136%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily driven by seasonal demand and associated inventory build in the U.S. and certain international markets.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOHTUVAYRE<\/p>\n<\/td>\n | \n \n184\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \nProduct obtained as part of the Company’s October 2025 acquisition of Verona Pharma plc.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBRIDION<\/p>\n<\/td>\n | \n \n144\u00a0<\/p>\n<\/td>\n | \n \n439\u00a0<\/p>\n<\/td>\n | \n \n-67%\u00a0<\/p>\n<\/td>\n | \n \n-67%\u00a0<\/p>\n<\/td>\n | \n \nDecline primarily driven by lower demand in the U.S. due to generic competition following loss of market exclusivity.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLAGEVRIO<\/p>\n<\/td>\n | \n \n17\u00a0<\/p>\n<\/td>\n | \n \n138\u00a0<\/p>\n<\/td>\n | \n \n-88%\u00a0<\/p>\n<\/td>\n | \n \n-88%\u00a0<\/p>\n<\/td>\n | \n \nDecline largely due to lower demand in Japan.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAnimal Health<\/p>\n<\/td>\n | \n \n1,676\u00a0<\/p>\n<\/td>\n | \n \n1,615\u00a0<\/p>\n<\/td>\n | \n \n4%\u00a0<\/p>\n<\/td>\n | \n \n3%\u00a0<\/p>\n<\/td>\n | \n \nGrowth attributable to both Livestock and Companion Animal product portfolios.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLivestock<\/p>\n<\/td>\n | \n \n1,048\u00a0<\/p>\n<\/td>\n | \n \n1,023\u00a0<\/p>\n<\/td>\n | \n \n2%\u00a0<\/p>\n<\/td>\n | \n \n2%\u00a0<\/p>\n<\/td>\n | \n \nGrowth primarily driven by higher demand for poultry products.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCompanion Animal<\/p>\n<\/td>\n | \n \n628\u00a0<\/p>\n<\/td>\n | \n \n592\u00a0<\/p>\n<\/td>\n | \n \n6%\u00a0<\/p>\n<\/td>\n | \n \n6%\u00a0<\/p>\n<\/td>\n | \n \nGrowth largely driven by new product launches. Sales of BRAVECTO line of products were $264 million and $262 million in the current and prior-year quarters, respectively, which represents an increase of 1%, or flat excluding impact of foreign exchange.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther Revenues**<\/p>\n<\/td>\n | \n \n141\u00a0<\/p>\n<\/td>\n | \n \n50\u00a0<\/p>\n<\/td>\n | \n \n185%\u00a0<\/p>\n<\/td>\n | \n \n-25%\u00a0<\/p>\n<\/td>\n | \n \nIncrease primarily due to favorable impact of revenue-hedging activities, partially offset by lower revenue from third-party manufacturing arrangements.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n*Alliance revenue for this product represents the Company\u2019s share of profits, which are product sales net of cost of sales and commercialization costs.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n**Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn addition, Koselugo alliance revenue was $13 million in the third quarter of 2026 compared with $214 million in the third quarter of 2025. The decrease was due to an amendment to the collaboration agreement with AstraZeneca in 2025, which discontinued the provisions whereby the Company shared revenue and costs with AstraZeneca, and revised the payment structure, resulting in the Company\u2019s recognition of a $150 million upfront payment and a $50 million regulatory milestone in the third quarter of 2025.<\/p>\n Third-Quarter Expense and Related Information<\/span><\/b><\/p>\n\nThe table below presents selected expense information.<\/p>\n \n\n| \n \n$ in millions<\/p>\n<\/td>\n | \n GAAP\u00a0<\/b><\/p>\n<\/td>\n | \n Acquisition-\u00a0
\n
and\u00a0
\n
Divestiture-\u00a0
\n
Related\u00a0
\n
Costs4\u00a0<\/sup><\/b><\/p>\n<\/td>\n\n Restructuring\u00a0
\n
<\/b>Costs\u00a0<\/b><\/p>\n<\/td>\n | \n (Income)\u00a0
\n
Loss From\u00a0
\n
Investments\u00a0
\n
in Equity\u00a0
\n
Securities\u00a0<\/b><\/p>\n<\/td>\n | \n Non-\u00a0
\n
<\/b>GAAP3\u00a0<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Third Quarter 2026<\/b><\/p>\n<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| \n \nCost of sales<\/p>\n<\/td>\n | \n \n$4,892\u00a0<\/p>\n<\/td>\n | \n \n$1,140\u00a0<\/p>\n<\/td>\n | \n \n$396\u00a0<\/p>\n<\/td>\n | \n \n$-\u00a0<\/p>\n<\/td>\n | \n \n$3,356\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSelling, general and administrative<\/p>\n<\/td>\n | \n \n2,886\u00a0<\/p>\n<\/td>\n | \n \n24\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n2,862\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nResearch and development<\/p>\n<\/td>\n | \n \n4,537\u00a0<\/p>\n<\/td>\n | \n \n3\u00a0<\/p>\n<\/td>\n | \n \n1\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n4,533\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRestructuring costs<\/p>\n<\/td>\n | \n \n184\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n184\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther (income) expense, net<\/p>\n<\/td>\n | \n \n27\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n(393)\u00a0<\/p>\n<\/td>\n | \n \n420\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Third Quarter 2025<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of sales<\/p>\n<\/td>\n | \n \n$3,855\u00a0<\/p>\n<\/td>\n | \n \n$621\u00a0<\/p>\n<\/td>\n | \n \n$110\u00a0<\/p>\n<\/td>\n | \n \n$-\u00a0<\/p>\n<\/td>\n | \n \n$3,124\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSelling, general and administrative<\/p>\n<\/td>\n | \n \n2,633\u00a0<\/p>\n<\/td>\n | \n \n34\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n2,599\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nResearch and development<\/p>\n<\/td>\n | \n \n4,234\u00a0<\/p>\n<\/td>\n | \n \n4\u00a0<\/p>\n<\/td>\n | \n \n233\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n3,997\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRestructuring costs<\/p>\n<\/td>\n | \n \n47\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n47\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther (income) expense, net<\/p>\n<\/td>\n | \n \n(238)\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n–\u00a0<\/p>\n<\/td>\n | \n \n(344)\u00a0<\/p>\n<\/td>\n | \n \n106\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n GAAP Expense, EPS and Related Information
\n
<\/span><\/b>Gross margin was 72.9% for the third quarter of 2026 compared with 77.7% for the third quarter of 2025. The decrease was primarily due to higher amortization of intangible assets, restructuring costs and production costs.<\/p>\n\nSelling, general and administrative (SG&A) expenses were $2.9 billion in the third quarter of 2026, an increase of 10% compared with the third quarter of 2025. The increase was primarily due to higher administrative costs, as well as higher promotional costs in support of product launches.<\/p>\n \nResearch and development (R&D) expenses were $4.5 billion in the third quarter of 2026, an increase of 7% compared with the third quarter of 2025. The increase was primarily due to a $400 million charge related to a global license agreement with SciBrunch and higher clinical development spending, partially offset by lower restructuring costs and a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the third quarter of 2025 include a $300 million charge for a milestone payment to LaNova for the completion of the technology transfer for MK-2010.<\/p>\n \nOther (income) expense, net, was $27 million of expense in the third quarter of 2026 compared with $238 million of income in the third quarter of 2025. The unfavorability was primarily due to higher net interest expense.<\/p>\n \nThe effective income tax rate for the third quarter of 2026 was 8.9%, reflecting the favorable impacts of certain discrete items, as well as jurisdictional mix of income and expense.<\/p>\n \nGAAP EPS was $2.04 for the third quarter of 2026 compared with $2.32 for the third quarter of 2025. The decrease was primarily driven by higher operating expenses, reflecting increased investments to advance the R&D pipeline and support product launches, higher amortization of intangible assets, higher net interest expense and increased restructuring costs, partially offset by operational strength in the business and a lower effective income tax rate.<\/p>\n Non-GAAP Expense, EPS and Related Information
\n
<\/span><\/b>Non-GAAP gross margin was 81.4% for the third quarter of 2026 compared with 81.9% for the third quarter of 2025. The decrease was primarily due to higher production costs.<\/p>\n\nNon-GAAP SG&A expenses were $2.9 billion in the third quarter of 2026, an increase of 10% compared with the third quarter of 2025. The increase was primarily due to higher administrative costs, as well as higher promotional costs in support of product launches.<\/p>\n \nNon-GAAP R&D expenses were $4.5 billion in the third quarter of 2026, an increase of 13% compared with the third quarter of 2025. The increase was primarily due to a $400 million charge related to a global license agreement with SciBrunch and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone. R&D expenses in the third quarter of 2025 include a $300 million charge for a milestone payment to LaNova for the completion of the technology transfer for MK-2010.<\/p>\n \nNon-GAAP other (income) expense, net, was $420 million of expense in the third quarter of 2026 compared with $106 million of expense in the third quarter of 2025. The unfavorability was primarily due to higher net interest expense.<\/p>\n \nThe non-GAAP effective income tax rate for the third quarter of 2026 was 10.9%, reflecting the favorable impacts of certain discrete items, as well as jurisdictional mix of income and expense.<\/p>\n \nNon-GAAP EPS was $2.49 for the third quarter of 2026 compared with $2.58 for the third quarter of 2025. The decrease was primarily driven by higher operating expenses, reflecting increased investments to advance the R&D pipeline and support product launches, and higher net interest expense, partially offset by operational strength in the business and a lower effective income tax rate.<\/p>\n \nA reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.<\/p>\n \n\n | \n\n Third Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n$ in millions, except EPS amounts<\/p>\n<\/td>\n | \n 2026\u00a0<\/b><\/p>\n<\/td>\n | \n 2025\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n EPS<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGAAP EPS<\/p>\n<\/td>\n | \n \n$2.04\u00a0<\/p>\n<\/td>\n | \n \n$2.32\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDifference<\/p>\n<\/td>\n | \n \n0.45\u00a0<\/p>\n<\/td>\n | \n \n0.26\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-GAAP EPS that excludes items listed below3<\/sup><\/p>\n<\/td>\n| \n \n$2.49\u00a0<\/p>\n<\/td>\n | \n \n$2.58\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net Income<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGAAP net income2<\/sup><\/p>\n<\/td>\n| \n \n$5,065\u00a0<\/p>\n<\/td>\n | \n \n$5,785\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDifference<\/p>\n<\/td>\n | \n \n1,094\u00a0<\/p>\n<\/td>\n | \n \n663\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNon-GAAP net income that excludes items listed below2,3<\/sup><\/p>\n<\/td>\n| \n \n$6,159\u00a0<\/p>\n<\/td>\n | \n \n$6,448\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Excluded Items:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAcquisition- and divestiture-related costs4<\/sup><\/p>\n<\/td>\n| \n \n$1,167\u00a0<\/p>\n<\/td>\n | \n \n$659\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRestructuring costs<\/p>\n<\/td>\n | \n \n581\u00a0<\/p>\n<\/td>\n | \n \n390\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nIncome from investments in equity securities<\/p>\n<\/td>\n | \n \n(393)\u00a0<\/p>\n<\/td>\n | \n \n(344)\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDecrease to net income before taxes<\/p>\n<\/td>\n | \n \n1,355\u00a0<\/p>\n<\/td>\n | \n \n705\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEstimated income tax (benefit) expense5<\/sup><\/p>\n<\/td>\n| \n \n(261)\u00a0<\/p>\n<\/td>\n | \n \n(42)\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDecrease to net income<\/p>\n<\/td>\n | \n \n$1,094\u00a0<\/p>\n<\/td>\n | \n \n$663\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Pipeline and Portfolio Highlights<\/span><\/b><\/p>\n\nIn the third quarter, the Company achieved key regulatory and clinical milestones to meaningfully advance its broad and diverse pipeline.<\/p>\n \n- \nOncology:<\/p>\n
\n- \nU.S. Food and Drug Administration (U.S. FDA) approved WELIREG plus Lenvima, in collaboration with Eisai, for certain previously treated adult patients with advanced renal cell carcinoma with a clear cell component (ccRCC), based on Phase 3 LITESPARK-011 trial.<\/p>\n
\n- \nApproval represents first approved combination of an oral hypoxia-inducible factor-2 alpha inhibitor and a multi-targeted vascular endothelial growth factor tyrosine kinase inhibitor (TKI) for these patients.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nIn October, U.S. FDA accepted a Biologics License Application (BLA) seeking approval of sac-TMT for the treatment of adult patients with endometrial cancer who have previously received platinum containing chemotherapy and a programmed death receptor 1 or programmed death ligand 1 inhibitor, separately or in combination, based on Phase 3 TroFuse-005 trial.<\/p>\n
\n- \nU.S. FDA set Prescription Drug User Fee Act (PDUFA) date of June 15, 2027. The Company is in discussions with the U.S. FDA and is hopeful for an earlier approval.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nIn October, European Commission (EC) approved KEYTRUDA plus Padcev as perioperative treatment for adults with resectable muscle-invasive bladder cancer (MIBC), based on Phase 3 KEYNOTE-B15 trial.<\/p>\n<\/li>\n
- \nMinistry of Health, Labor and Welfare in Japan approved subcutaneous pembrolizumab and berahyaluronidase alfa injection under the trademark KEYJECT (marketed as KEYTRUDA QLEX in the U.S.) for all KEYTRUDA indications approved in Japan, based on Phase 3 MK-3475A-D77 trial.<\/p>\n<\/li>\n
- \nAt the European Society for Medical Oncology (ESMO) Congress 2026 in October, positive new data were presented during three late-breaking Presidential Symposia across three Phase 3 trials from the Company\u2019s robust oncology pipeline and portfolio, including:<\/p>\n
\n- \nResults from Phase 3 TroFuse-005 trial evaluating sac-TMT for patients with advanced or recurrent endometrial cancer previously treated with chemotherapy and anti-PD-1\/L1 immunotherapy.<\/p>\n<\/li>\n
- \nResults from Phase 3 INTerpath-001 trial, in collaboration with Moderna, Inc. (Moderna), evaluating adjuvant treatment with intismeran autogene (intismeran; V940 or mRNA-4157) in combination with KEYTRUDA.<\/p>\n<\/li>\n
- \nResults from Phase 3 KEYNOTE-C93 trial evaluating KEYTRUDA monotherapy versus platinum doublet chemotherapy as a first-line treatment for certain patients with mismatch repair deficient (dMMR) advanced or recurrent endometrial cancer who had not previously received systemic chemotherapy or who experienced recurrence more than six months after completing prior adjuvant therapy.<\/p>\n<\/li>\n
- \nIn addition, data were presented from Phase 3 OptiTROP studies in China, led by Kelun-Biotech, evaluating sac-TMT in non-small cell lung cancer (NSCLC), including:<\/p>\n
\n- \nResults from the OptiTROP-Lung06 study as first-line treatment for PD-L1-negative advanced non-squamous NSCLC.<\/p>\n<\/li>\n
- \nFinal overall survival data from the OptiTROP-Lung04 study in epidermal growth factor receptor (EGFR)-mutated NSCLC following progression on EGFR TKIs.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
- \nIfinatamab deruxtecan (I-DXd) Biologics License Application (BLA), in collaboration with Daiichi Sankyo, for certain patients with previously treated extensive-stage small cell lung cancer (ES-SCLC) was voluntarily withdrawn.
\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n- \nVaccines and Infectious Diseases:<\/p>\n
\n- \nU.S. FDA accepted a supplemental BLA (sBLA) for ENFLONSIA to expand its indication to include prevention of respiratory syncytial virus (RSV) lower respiratory tract disease (LRTD) in children under 2 years of age at increased risk for severe RSV disease through their second RSV season, based on Phase 3 SMART trial.<\/p>\n
\n- \nU.S. FDA set PDUFA date of March 22, 2027.<\/p>\n<\/li>\n
- \nApplications to expand marketing authorization for ENFLONSIA for same population in Europe and Japan, based on Phase 3 SMART trial, have also been accepted.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nU.S. FDA accepted a supplemental New Drug Application (sNDA) for IDVYNSO for the treatment of certain adults with HIV-1 infection who had not previously received antiretroviral treatment, based on Phase 3 P053 trial. U.S. FDA also accepted an sNDA to include 96-week data for IDVYNSO in certain virologically suppressed adults, based on the Phase 3 P051 and P052 trials.<\/p>\n
\n- \nU.S. FDA set a PDUFA date for both sNDAs of April 22, 2027.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
- \nCardiometabolic, Respiratory and Specialty:<\/p>\n
\n- \nU.S. FDA approved an update to U.S. product label for WINREVAIR to include efficacy and safety data from the Phase 3 HYPERION trial evaluating adults recently diagnosed with pulmonary arterial hypertension (PAH, World Health Organization [WHO] Group 1 pulmonary hypertension).<\/p>\n
\n- \nIn HYPERION, in patients diagnosed with PAH in the last 12 months, adding WINREVAIR on top of background therapy reduced the risk of clinical worsening events compared to placebo.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
- \nImmunology:<\/p>\n
\n- \nPresented results from Phase 2b study of tulisokibart in adults with moderate to severe hidradenitis suppurativa (HS).<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nOphthalmology:<\/p>\n
\n- \nAt the American Academy of Ophthalmology (AAO) 2026 Annual Meeting in October, presented for the first time one-year results from Phase 2b\/3 BRUNELLO trial evaluating remigromig, an investigational, tetravalent, tri-specific antibody designed to agonize the Wingless-related integration site (Wnt) pathway, in adults with diabetic macular edema (DME).<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nBusiness Development:<\/p>\n
\n- \nAnnounced an exclusive global license agreement with SciBrunch for MK-2690 (SPR2015), an investigational preclinical oral KRAS G12D (ON) inhibitor.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\nNotable recent news releases on the Company\u2019s pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company\u2019s website to read the releases.*<\/p>\n | | | | | | | | | | | | | | | | | | |