What is occurring here? The stock rose by 41% over six months, propelled by a slight 0.5% increase in revenue, a significant 8.6% rise in net margin, and a substantial 28% increase in the P/E multiple. Let’s investigate the reasons behind these changes.

Here Is Why Merck Stock Moved

• Q3 2025 Earnings: Q3 revenue amounted to $17.3B (+4%), non-GAAP EPS at $2.58, with 2025 guidance raised. Strong sales of Keytruda.
• FDA KEYTRUDA Approval: The FDA granted approval for KEYTRUDA+Padcev for MIBC, marking a first-in-class regimen, which expands Keytruda’s market.
• Wells Fargo Upgrade: An analyst raised MRK to Overweight based on pipeline progress and confidence in growth following Keytruda.
• Keytruda SubQ Launch: Subcutaneous KEYTRUDA QLEX was approved/launched in the EU, enhancing future revenues after LOE.
• Q2 2025 Earnings: Q2 revenue was $15.8B (-2%), with non-GAAP EPS at $2.13. The focus remains on investment in the pipeline and growth for H2.

Our Current Assessment Of MRK Stock

Opinion: We currently believe MRK stock is fairly valued. Why is this the case? Take a look at the complete story. Read Buy or Sell MRK Stock to understand what informs our existing viewpoint.

Risk: A useful method to assess the risk associated with MRK is to observe its declines during significant market downturns. It experienced a 63% loss during the Global Financial Crisis and approximately 38% during the Dot-Com Bubble. Even less substantial shocks affected it severely — such as a 27% decline during the Covid pandemic and about 20% during the Inflation Shock. The 2018 correction wasn’t particularly forgiving, with an 18% drop. While MRK may boast strong fundamentals, historical data indicates it is not invulnerable when market conditions worsen.

MRK stock may have experienced considerable gains lately; however, investing in a single stock without comprehensive, detailed analysis can be risky. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has a proven track record of consistently outperforming its benchmark, which includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is this the case? Collectively, HQ Portfolio stocks have delivered superior returns with less risk compared to the benchmark index; offering a smoother investment experience, as shown in HQ Portfolio performance metrics.