Analysis of Revenues
Revenues as Reported
Merck & Co. Inc., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall, the reported sales demonstrate a consistent upward trajectory from 2021 through 2025. This growth is primarily driven by increases in pharmaceutical segment sales, with contributions from the Animal Health segment and fluctuations in the 'Other' category. A detailed examination of each component reveals specific patterns and potential areas for further investigation.
- Pharmaceutical Segment Sales
- Pharmaceutical segment sales exhibited substantial growth, increasing from US$42,754 million in 2021 to US$58,142 million in 2025. The most significant increase occurred between 2021 and 2022, with a rise of approximately US$9,251 million. Growth rates moderated in subsequent years, but remained positive, indicating sustained demand for pharmaceutical products. The increase from 2023 to 2024 was US$3,817 million, and from 2024 to 2025 was US$742 million.
- Animal Health Segment Sales
- Animal Health segment sales remained relatively stable between 2021 and 2022, with a slight decrease of US$18 million. However, the segment experienced consistent growth from 2022 onwards, reaching US$6,354 million in 2025. This represents an overall increase of approximately US$786 million over the five-year period. The largest increase within this segment occurred between 2024 and 2025, with a rise of US$477 million.
- Total Segment Sales
- Total segment sales mirrored the trend observed in pharmaceutical sales, increasing from US$48,322 million in 2021 to US$64,496 million in 2025. The largest year-over-year increase in total segment sales was observed between 2021 and 2022, with a gain of US$9,233 million. Growth continued, though at a decreasing rate, through 2025.
- Other Sales
- The 'Other' category exhibited considerable volatility. Sales increased significantly from US$382 million in 2021 to US$1,728 million in 2022, before declining to US$515 million in 2025. This fluctuation suggests the presence of non-recurring items or changes in the composition of this category. The substantial decrease from 2022 to 2023 (US$821 million) and from 2023 to 2024 (US$116 million) warrants further investigation to understand the underlying drivers.
- Total Sales
- Total sales followed the overall positive trend, increasing from US$48,704 million in 2021 to US$65,011 million in 2025. The growth rate, while positive throughout the period, showed a slight deceleration in the later years. The largest increase in total sales occurred between 2021 and 2022, with a gain of US$10,579 million. The increase from 2024 to 2025 was US$843 million.
In conclusion, the reported figures indicate a period of sustained revenue growth, primarily fueled by the pharmaceutical segment. The Animal Health segment contributed to this growth, while the 'Other' category demonstrated significant variability. Continued monitoring of the 'Other' category and the moderating growth rates in the pharmaceutical segment will be important for future performance assessment.