Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Merck & Co. Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Sales	16,607)	16,286)	16,400)	17,276)	15,806)	15,529)	15,624)	16,657)	16,112)	15,775)	14,631)	15,962)	15,035)	14,487)	13,830)	14,959)	14,593)	15,901)	13,521)	13,154)	11,402)	10,627)
Cost of sales	(4,395)	(4,195)	(5,551)	(3,855)	(3,557)	(3,419)	(3,828)	(4,080)	(3,745)	(3,540)	(3,912)	(4,264)	(4,024)	(3,926)	(3,881)	(3,934)	(4,216)	(5,380)	(3,873)	(3,450)	(3,104)	(3,199)
Gross profit	12,212)	12,091)	10,849)	13,421)	12,249)	12,110)	11,796)	12,577)	12,367)	12,235)	10,719)	11,698)	11,011)	10,561)	9,949)	11,025)	10,377)	10,521)	9,648)	9,704)	8,298)	7,428)
Selling, general and administrative	(2,904)	(2,700)	(2,899)	(2,633)	(2,649)	(2,552)	(2,863)	(2,731)	(2,739)	(2,483)	(2,804)	(2,519)	(2,702)	(2,479)	(2,687)	(2,520)	(2,512)	(2,323)	(2,830)	(2,336)	(2,281)	(2,187)
Research and development	(9,741)	(12,592)	(3,886)	(4,234)	(4,048)	(3,621)	(4,584)	(5,862)	(3,500)	(3,992)	(9,627)	(3,307)	(13,321)	(4,276)	(3,775)	(4,399)	(2,798)	(2,576)	(3,067)	(2,445)	(4,321)	(2,412)
Restructuring costs	(151)	(195)	(213)	(47)	(560)	(69)	(50)	(56)	(80)	(123)	(255)	(126)	(151)	(67)	(48)	(94)	(142)	(53)	(175)	(107)	(82)	(297)
Operating income (loss)	(584)	(3,396)	3,851)	6,507)	4,992)	5,868)	4,299)	3,928)	6,048)	5,637)	(1,967)	5,746)	(5,163)	3,739)	3,439)	4,012)	4,925)	5,569)	3,576)	4,816)	1,614)	2,532)
Other income (expense), net	(99)	(138)	(431)	238)	7)	35)	(129)	162)	(42)	33)	(79)	(126)	(172)	(89)	74)	(429)	(438)	(708)	333)	450)	103)	455)
Income (loss) from continuing operations before taxes	(683)	(3,534)	3,420)	6,745)	4,999)	5,903)	4,170)	4,090)	6,006)	5,670)	(2,046)	5,620)	(5,335)	3,650)	3,513)	3,583)	4,487)	4,861)	3,909)	5,266)	1,717)	2,987)
Taxes on income from continuing operations	(654)	(709)	(457)	(958)	(571)	(818)	(426)	(929)	(545)	(903)	820)	(870)	(637)	(825)	(496)	(330)	(538)	(554)	(85)	(695)	(503)	(238)
Net income (loss) from continuing operations	(1,337)	(4,243)	2,963)	5,787)	4,428)	5,085)	3,744)	3,161)	5,461)	4,767)	(1,226)	4,750)	(5,972)	2,825)	3,017)	3,253)	3,949)	4,307)	3,824)	4,571)	1,214)	2,749)
Income from discontinued operations, net of taxes	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(62)	—)	332)	434)
Net income (loss)	(1,337)	(4,243)	2,963)	5,787)	4,428)	5,085)	3,744)	3,161)	5,461)	4,767)	(1,226)	4,750)	(5,972)	2,825)	3,017)	3,253)	3,949)	4,307)	3,762)	4,571)	1,546)	3,183)
Net (income) loss attributable to noncontrolling interests	2)	3)	—)	(2)	(1)	(6)	(1)	(4)	(6)	(5)	—)	(5)	(3)	(4)	—)	(5)	(5)	3)	(4)	(4)	(1)	(4)
Net income (loss) attributable to Merck & Co., Inc.	(1,335)	(4,240)	2,963)	5,785)	4,427)	5,079)	3,743)	3,157)	5,455)	4,762)	(1,226)	4,745)	(5,975)	2,821)	3,017)	3,248)	3,944)	4,310)	3,758)	4,567)	1,545)	3,179)

Revenue demonstrates a consistent long-term upward trajectory, increasing from $10,627 million in March 2021 to $16,607 million by June 2026. While growth has been steady, a peak in sales was observed in September 2025 at $17,276 million, followed by slight fluctuations in subsequent quarters.

Gross Profitability and Cost Management: Gross profit has expanded significantly over the analyzed period, rising from $7,428 million in the first quarter of 2021 to $12,212 million by the second quarter of 2026. This growth is supported by a generally controlled cost of sales, although a notable spike in costs occurred in December 2025, reaching $5,551 million, which temporarily constrained gross profit margins during that period.
Operational Expense Patterns: Selling, general, and administrative (SG&A) expenses have remained relatively stable, typically fluctuating between $2.1 billion and $2.9 billion per quarter. In contrast, research and development (R&D) spending exhibits extreme volatility. While baseline R&D costs often range between $3 billion and $4 billion, massive periodic spikes are evident, specifically in June 2023 (-$13,321 million), December 2023 (-$9,627 million), March 2026 (-$12,592 million), and June 2026 (-$9,741 million).
Operating Income and Net Profitability: The volatility in R&D spending directly correlates with fluctuations in operating income and net income. The company maintained strong profitability in most quarters, but the aforementioned R&D surges resulted in substantial operating losses, most notably in June 2023 (-$5,163 million) and March 2026 (-$3,396 million). Net income follows this pattern, with significant losses in the same periods, partially mitigated by tax benefits in certain loss-making quarters, such as December 2023.
Other Income and Non-Operating Items: Other income and expenses have remained a minor driver of overall performance, though a notable gain of $238 million was recorded in September 2025. Restructuring costs have remained generally low, with a significant outlier in June 2022 and June 2025, indicating periodic organizational adjustments.

Overall, the financial profile is characterized by strong top-line growth and robust core gross margins, which are periodically offset by aggressive, large-scale investments in research and development. This creates a cyclical pattern of high profitability interrupted by significant quarterly losses.

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Merck & Co. Inc. (NYSE:MRK)

Income StatementQuarterly Data

Income Statement
Quarterly Data