<\/p>\n
Merck & Co., Inc., Rahway, N.J., USA Announces Second-Quarter 2026 Financial Results; Highlights Key Regulatory and Clinical Milestones Across Broad, Diverse Pipeline<\/b><\/p>\n
Sales Growth Reflects Continued Strength in Oncology, Including Initial Uptake of KEYTRUDA QLEX, and Animal Health, Plus Contributions From Launches Such as WINREVAIR<\/b><\/p>\n
Financial Highlights<\/span><\/i><\/p>\n Pipeline & Portfolio Highlights<\/span><\/i><\/p>\n Full-Year 2026 Financial Outlook<\/span><\/i><\/p>\n RAHWAY, N.J.–(BUSINESS WIRE<\/a>)– \n\u201cWe continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches,\u201d said Robert M. Davis, chairman and chief executive officer. \u201cThe FDA approval of LIPFENDRA is an exciting moment for our company and for patients, marking the latest milestone in our nearly 70-year legacy in cardiovascular disease. Together with key regulatory and clinical advances across oncology, HIV and immunology, this achievement reflects the strength of our pipeline and portfolio transformation as we bring forward the next wave of innovation. I am confident in the ongoing execution of our strategy as we deliver for patients and further enhance our long-term growth trajectory.\u201d<\/p>\n Financial Summary<\/span><\/b><\/p>\n \n$ in millions, except EPS amounts<\/p>\n<\/td>\n Second Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n 2026\u00a0<\/b><\/p>\n<\/td>\n 2025\u00a0<\/b><\/p>\n<\/td>\n Change<\/b><\/p>\n<\/td>\n Change Ex-<\/b><\/p>\n Exchange<\/b><\/p>\n<\/td>\n<\/tr>\n \nSales<\/p>\n<\/td>\n \n$16,607\u00a0<\/p>\n<\/td>\n \n$15,806\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \n4%\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGAAP net (loss) income2<\/sup><\/p>\n<\/td>\n \n(1,335)\u00a0<\/p>\n<\/td>\n \n4,427\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP net (loss) income that excludes certain items2,3*<\/sup><\/p>\n<\/td>\n \n(330)\u00a0<\/p>\n<\/td>\n \n5,366\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGAAP EPS<\/p>\n<\/td>\n \n(0.54)\u00a0<\/p>\n<\/td>\n \n1.76\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP EPS that excludes certain items3*<\/sup><\/p>\n<\/td>\n \n(0.13)\u00a0<\/p>\n<\/td>\n \n2.13\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n \nN\/M\u00a0<\/p>\n<\/td>\n<\/tr>\n \n*Refer to table on page 7.<\/p>\n<\/td>\n<\/tr>\n \nN\/M – Not meaningful<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFor the second quarter of 2026, Generally Accepted Accounting Principles (GAAP) loss \/ earnings per share (EPS) assuming dilution was a loss per share of $0.54 and non-GAAP loss per share was $0.13. Both the GAAP and non-GAAP loss per share were due to a charge for the acquisition of Terns Pharmaceuticals, Inc. (Terns) of $2.31 per share. Both GAAP and non-GAAP EPS in the second quarter of 2025 include a charge of $0.07 per share for an upfront payment related to a license agreement with Jiangsu Hengrui Pharmaceutical Co., Ltd. (Hengrui Pharma).<\/p>\n \nNon-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in the second quarter of 2025 also excludes tax benefits primarily resulting from favorable audit reserve adjustments.<\/p>\n \nYear-to-date results can be found in the attached tables.<\/p>\n Second-Quarter Sales Performance \n\u00a0<\/p>\n<\/td>\n Second Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n \n$ in millions<\/p>\n<\/td>\n 2026\u00a0<\/b><\/p>\n<\/td>\n 2025\u00a0<\/b><\/p>\n<\/td>\n Change<\/b><\/p>\n<\/td>\n Change Ex-Exchange<\/b><\/p>\n<\/td>\n Commentary<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal Sales<\/p>\n<\/td>\n \n$16,607\u00a0<\/p>\n<\/td>\n \n$15,806\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \n4%\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPharmaceutical<\/p>\n<\/td>\n \n14,760\u00a0<\/p>\n<\/td>\n \n14,050\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \n4%\u00a0<\/p>\n<\/td>\n \nIncrease primarily driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in diabetes.<\/p>\n<\/td>\n<\/tr>\n \nKEYTRUDA\/ \n8,366\u00a0<\/p>\n<\/td>\n \n7,956\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \n4%\u00a0<\/p>\n<\/td>\n \nGrowth primarily driven by strong global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Sales of KEYTRUDA QLEX were $463 million.<\/p>\n<\/td>\n<\/tr>\n \nGARDASIL\/ \n1,169\u00a0<\/p>\n<\/td>\n \n1,126\u00a0<\/p>\n<\/td>\n \n4%\u00a0<\/p>\n<\/td>\n \n3%\u00a0<\/p>\n<\/td>\n \nIncrease primarily due to higher demand in Asia Pacific and Europe, as well as favorable timing of tenders in Europe, partially offset by lower demand in certain other international markets.<\/p>\n<\/td>\n<\/tr>\n \nPROQUAD, M-M-R II and VARIVAX<\/p>\n<\/td>\n \n592\u00a0<\/p>\n<\/td>\n \n609\u00a0<\/p>\n<\/td>\n \n-3%\u00a0<\/p>\n<\/td>\n \n-3%\u00a0<\/p>\n<\/td>\n \nDecrease primarily reflects lower demand in the U.S., partially offset by higher net pricing in the U.S., higher demand in Europe and favorable private-sector purchasing patterns for M-M-R II in the U.S.<\/p>\n<\/td>\n<\/tr>\n \nWINREVAIR<\/p>\n<\/td>\n \n588\u00a0<\/p>\n<\/td>\n \n336\u00a0<\/p>\n<\/td>\n \n75%\u00a0<\/p>\n<\/td>\n \n75%\u00a0<\/p>\n<\/td>\n \nGrowth primarily reflects continued uptake in the U.S. and early launch uptake in certain international markets, particularly in Japan and Europe.<\/p>\n<\/td>\n<\/tr>\n \nBRIDION<\/p>\n<\/td>\n \n497\u00a0<\/p>\n<\/td>\n \n461\u00a0<\/p>\n<\/td>\n \n8%\u00a0<\/p>\n<\/td>\n \n8%\u00a0<\/p>\n<\/td>\n \nGrowth primarily due to higher demand and net pricing in the U.S.<\/p>\n<\/td>\n<\/tr>\n \nJANUVIA\/JANUMET<\/p>\n<\/td>\n \n429\u00a0<\/p>\n<\/td>\n \n623\u00a0<\/p>\n<\/td>\n \n-31%\u00a0<\/p>\n<\/td>\n \n-31%\u00a0<\/p>\n<\/td>\n \nDecline primarily due to lower demand and net pricing in the U.S. due to competition, as well as lower demand in China and most other international markets due to ongoing generic competition.<\/p>\n<\/td>\n<\/tr>\n \nLynparza*<\/p>\n<\/td>\n \n365\u00a0<\/p>\n<\/td>\n \n370\u00a0<\/p>\n<\/td>\n \n-1%\u00a0<\/p>\n<\/td>\n \n-2%\u00a0<\/p>\n<\/td>\n \nRelatively flat compared with prior year.<\/p>\n<\/td>\n<\/tr>\n \nPREVYMIS<\/p>\n<\/td>\n \n295\u00a0<\/p>\n<\/td>\n \n228\u00a0<\/p>\n<\/td>\n \n29%\u00a0<\/p>\n<\/td>\n \n28%\u00a0<\/p>\n<\/td>\n \nIncrease primarily due to higher demand in the U.S. and certain European markets, reflecting in part the launch of new indications.<\/p>\n<\/td>\n<\/tr>\n \nLenvima*<\/p>\n<\/td>\n \n283\u00a0<\/p>\n<\/td>\n \n265\u00a0<\/p>\n<\/td>\n \n7%\u00a0<\/p>\n<\/td>\n \n6%\u00a0<\/p>\n<\/td>\n \nGrowth primarily due to higher demand in the U.S., partially offset by lower net pricing.<\/p>\n<\/td>\n<\/tr>\n \nWELIREG<\/p>\n<\/td>\n \n271\u00a0<\/p>\n<\/td>\n \n162\u00a0<\/p>\n<\/td>\n \n67%\u00a0<\/p>\n<\/td>\n \n67%\u00a0<\/p>\n<\/td>\n \nGrowth primarily driven by higher demand in the U.S. and continued launch uptake in several international markets, particularly in Japan, as well as favorable wholesaler purchasing patterns in the U.S.<\/p>\n<\/td>\n<\/tr>\n \nOHTUVAYRE<\/p>\n<\/td>\n \n204\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \nProduct obtained as part of the Company\u2019s October 2025 acquisition of Verona Pharma plc. Includes a benefit from the timing of specialty pharmacy purchases in the U.S.<\/p>\n<\/td>\n<\/tr>\n \nCAPVAXIVE<\/p>\n<\/td>\n \n184\u00a0<\/p>\n<\/td>\n \n129\u00a0<\/p>\n<\/td>\n \n42%\u00a0<\/p>\n<\/td>\n \n40%\u00a0<\/p>\n<\/td>\n \nIncrease primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, as well as in the U.S.<\/p>\n<\/td>\n<\/tr>\n \nVAXNEUVANCE<\/p>\n<\/td>\n \n148\u00a0<\/p>\n<\/td>\n \n229\u00a0<\/p>\n<\/td>\n \n-35%\u00a0<\/p>\n<\/td>\n \n-36%\u00a0<\/p>\n<\/td>\n \nDecline primarily due to favorable prior period public-sector activity in the U.S., which increased sales in that period, as well as lower demand in the U.S. and in most international markets in the current period due to competitive pressure.<\/p>\n<\/td>\n<\/tr>\n \nLAGEVRIO<\/p>\n<\/td>\n \n5\u00a0<\/p>\n<\/td>\n \n83\u00a0<\/p>\n<\/td>\n \n-95%\u00a0<\/p>\n<\/td>\n \n-95%\u00a0<\/p>\n<\/td>\n \nDecline largely due to lower demand in Japan and the U.S.<\/p>\n<\/td>\n<\/tr>\n \nAnimal Health<\/p>\n<\/td>\n \n1,775\u00a0<\/p>\n<\/td>\n \n1,646\u00a0<\/p>\n<\/td>\n \n8%\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \nGrowth attributable to both Livestock and Companion Animal product portfolios.<\/p>\n<\/td>\n<\/tr>\n \nLivestock<\/p>\n<\/td>\n \n1,041\u00a0<\/p>\n<\/td>\n \n961\u00a0<\/p>\n<\/td>\n \n8%\u00a0<\/p>\n<\/td>\n \n6%\u00a0<\/p>\n<\/td>\n \nGrowth primarily driven by higher demand for ruminant and poultry products.<\/p>\n<\/td>\n<\/tr>\n \nCompanion Animal<\/p>\n<\/td>\n \n734\u00a0<\/p>\n<\/td>\n \n685\u00a0<\/p>\n<\/td>\n \n7%\u00a0<\/p>\n<\/td>\n \n5%\u00a0<\/p>\n<\/td>\n \nGrowth primarily due to new product launches. Sales of BRAVECTO line of products were $359 million and $335 million in the current and prior-year quarters, respectively, which represents an increase of 7%, or 4% excluding impact of foreign exchange.<\/p>\n<\/td>\n<\/tr>\n \nOther Revenues**<\/p>\n<\/td>\n \n72\u00a0<\/p>\n<\/td>\n \n110\u00a0<\/p>\n<\/td>\n \n-35%\u00a0<\/p>\n<\/td>\n \n-34%\u00a0<\/p>\n<\/td>\n \nDecline primarily due to lower revenue from third-party manufacturing arrangements.<\/p>\n<\/td>\n<\/tr>\n \n*Alliance revenue for this product represents the Company\u2019s share of profits, which are product sales net of cost of sales and commercialization costs.<\/p>\n<\/td>\n<\/tr>\n \n**Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Second-Quarter Expense and Related Information \n$ in millions<\/p>\n<\/td>\n GAAP<\/b><\/p>\n<\/td>\n Acquisition- Restructuring (Income) Non- Second Quarter 2026<\/b><\/p>\n<\/td>\n \nCost of sales<\/p>\n<\/td>\n \n$4,395\u00a0<\/p>\n<\/td>\n \n$1,067\u00a0<\/p>\n<\/td>\n \n$184\u00a0<\/p>\n<\/td>\n \n$-\u00a0<\/p>\n<\/td>\n \n$3,144\u00a0<\/p>\n<\/td>\n<\/tr>\n \nSelling, general and administrative<\/p>\n<\/td>\n \n2,904\u00a0<\/p>\n<\/td>\n \n17\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n2,887\u00a0<\/p>\n<\/td>\n<\/tr>\n \nResearch and development<\/p>\n<\/td>\n \n9,741\u00a0<\/p>\n<\/td>\n \n6\u00a0<\/p>\n<\/td>\n \n(1)\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n9,736\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRestructuring costs<\/p>\n<\/td>\n \n151\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n151\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther (income) expense, net<\/p>\n<\/td>\n \n99\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n(191)\u00a0<\/p>\n<\/td>\n \n290\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n Second Quarter 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCost of sales<\/p>\n<\/td>\n \n$3,557\u00a0<\/p>\n<\/td>\n \n$576\u00a0<\/p>\n<\/td>\n \n$165\u00a0<\/p>\n<\/td>\n \n$-\u00a0<\/p>\n<\/td>\n \n$2,816\u00a0<\/p>\n<\/td>\n<\/tr>\n \nSelling, general and administrative<\/p>\n<\/td>\n \n2,649\u00a0<\/p>\n<\/td>\n \n15\u00a0<\/p>\n<\/td>\n \n1\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n2,633\u00a0<\/p>\n<\/td>\n<\/tr>\n \nResearch and development<\/p>\n<\/td>\n \n4,048\u00a0<\/p>\n<\/td>\n \n3\u00a0<\/p>\n<\/td>\n \n53\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n3,992\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRestructuring costs<\/p>\n<\/td>\n \n560\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n560\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther (income) expense, net<\/p>\n<\/td>\n \n(7)\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n–\u00a0<\/p>\n<\/td>\n \n(61)\u00a0<\/p>\n<\/td>\n \n54\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n GAAP Expense, EPS and Related Information \nSelling, general and administrative (SG&A) expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches.<\/p>\n \nResearch and development (R&D) expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma.<\/p>\n \nOther (income) expense, net, was $99 million of expense in the second quarter of 2026 compared with $7 million of income in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense, partially offset by higher net income from investments in equity securities.<\/p>\n \nThe income tax provision for the second quarter of 2026 was $654 million on a pretax loss of $683 million, resulting in an effective income tax rate of (95.9)%. This effective income tax rate includes a 108.9 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded.<\/p>\n \nGAAP loss per share was $0.54 for the second quarter of 2026 compared with earnings per share of $1.76 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.<\/p>\n Non-GAAP Expense, EPS and Related Information \nNon-GAAP SG&A expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches.<\/p>\n \nNon-GAAP R&D expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns 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 second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma.<\/p>\n \nNon-GAAP other (income) expense, net, was $290 million of expense in the second quarter of 2026 compared with $54 million of expense in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense.<\/p>\n \nThe non-GAAP income tax provision for the second quarter of 2026 was $882 million on pretax income of $550 million, resulting in a non-GAAP effective income tax rate of 160.3%. This effective income tax rate includes a 146.2 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded.<\/p>\n \nNon-GAAP loss per share was $0.13 for the second quarter of 2026 compared with earnings per share of $2.13 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.<\/p>\n \nA reconciliation of GAAP to non-GAAP net (loss) income and EPS is provided in the table that follows.<\/p>\n\n
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\nMerck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2026.<\/p>\n\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
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<\/span><\/b>The following table reflects sales of the Company\u2019s top products and significant performance drivers.<\/p>\n\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
KEYTRUDA QLEX<\/p>\n<\/td>\n\n \n \n \n \n \n \n
\n
GARDASIL 9<\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
<\/span><\/b>The table below presents selected expense information.<\/p>\n\n
\n \n \n \n
\n
and
\n
Divestiture-
\n
Related Costs4<\/sup><\/b><\/p>\n<\/td>\n\n
\n<\/b>
Costs<\/b><\/p>\n<\/td>\n\n
\n
Loss From
\n
Investments
\n
in Equity
\n
Securities<\/b><\/p>\n<\/td>\n\n
\n<\/b>
GAAP3<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
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<\/span><\/b>Gross margin was 73.5% for the second quarter of 2026 compared with 77.5% for the second quarter of 2025. The decrease was primarily due to higher amortization of intangible assets and inventory write-downs.<\/p>\n
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<\/span><\/b>Non-GAAP gross margin was 81.1% for the second quarter of 2026 compared with 82.2% for the second quarter of 2025. The decrease was primarily due to higher inventory write-downs.<\/p>\n