Net Profit Margin
since 2005
Calculation
Merck & Co. Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Merck & Co., Inc.1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 28.08% | = | 100 | × | 18,254) | ÷ | 65,011) |
| Dec 31, 2024 | 26.68% | = | 100 | × | 17,117) | ÷ | 64,168) |
| Dec 31, 2023 | 0.61% | = | 100 | × | 365) | ÷ | 60,115) |
| Dec 31, 2022 | 24.49% | = | 100 | × | 14,519) | ÷ | 59,283) |
| Dec 31, 2021 | 26.79% | = | 100 | × | 13,049) | ÷ | 48,704) |
| Dec 31, 2020 | 14.72% | = | 100 | × | 7,067) | ÷ | 47,994) |
| Dec 31, 2019 | 21.01% | = | 100 | × | 9,843) | ÷ | 46,840) |
| Dec 31, 2018 | 14.71% | = | 100 | × | 6,220) | ÷ | 42,294) |
| Dec 31, 2017 | 5.97% | = | 100 | × | 2,394) | ÷ | 40,122) |
| Dec 31, 2016 | 9.85% | = | 100 | × | 3,920) | ÷ | 39,807) |
| Dec 31, 2015 | 11.25% | = | 100 | × | 4,442) | ÷ | 39,498) |
| Dec 31, 2014 | 28.22% | = | 100 | × | 11,920) | ÷ | 42,237) |
| Dec 31, 2013 | 10.00% | = | 100 | × | 4,404) | ÷ | 44,033) |
| Dec 31, 2012 | 13.05% | = | 100 | × | 6,168) | ÷ | 47,267) |
| Dec 31, 2011 | 13.05% | = | 100 | × | 6,272) | ÷ | 48,047) |
| Dec 31, 2010 | 1.87% | = | 100 | × | 861) | ÷ | 45,987) |
| Dec 31, 2009 | 47.04% | = | 100 | × | 12,901) | ÷ | 27,428) |
| Dec 31, 2008 | 32.74% | = | 100 | × | 7,808) | ÷ | 23,850) |
| Dec 31, 2007 | 13.54% | = | 100 | × | 3,275) | ÷ | 24,198) |
| Dec 31, 2006 | 19.59% | = | 100 | × | 4,434) | ÷ | 22,636) |
| Dec 31, 2005 | 21.04% | = | 100 | × | 4,631) | ÷ | 22,012) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The net profit margin exhibited considerable fluctuation over the period from 2005 to 2025. Initial years showed relatively high margins, followed by a period of volatility and then a return to stronger performance in later years, though with a significant dip in 2022.
- Initial Period (2005-2007)
- From 2005 to 2007, the net profit margin decreased from 21.04% to 13.54%. This represents a consistent downward trend, suggesting increasing costs or pricing pressures during this timeframe. While sales increased, the rate of income growth did not keep pace.
- Volatility and Peak (2008-2009)
- A dramatic increase occurred in 2008, with the net profit margin reaching 32.74%, followed by an exceptionally high value of 47.04% in 2009. This substantial improvement likely reflects specific events impacting profitability in those years, potentially including cost reductions or significant gains from particular products or business segments. However, this was not sustained.
- Subsequent Decline and Stabilization (2010-2012)
- The net profit margin experienced a sharp decline in 2010, falling to 1.87%, before stabilizing in the 13.05% range for 2011 and 2012. The 2010 drop indicates a significant challenge to profitability, potentially linked to increased expenses or a shift in sales mix. The subsequent stabilization suggests corrective actions were taken, but did not fully restore earlier levels.
- Moderate Fluctuations (2013-2017)
- The period from 2013 to 2017 showed moderate fluctuations, ranging from 10.00% to 28.22%. The margin peaked in 2014 at 28.22% and then trended downwards, reaching a low of 5.97% in 2017. This period suggests a degree of sensitivity to external factors or internal operational changes.
- Recent Trends (2018-2025)
- From 2018 to 2021, the net profit margin generally increased, reaching 26.79% in 2021. However, a substantial decrease to 0.61% occurred in 2022, representing a significant disruption to profitability. The margin rebounded strongly in 2023 and 2024, reaching 26.68% and 28.08% respectively, indicating a recovery. The latest value in 2025 is 28.08%, consistent with the recent recovery.
Overall, the net profit margin demonstrates a pattern of significant variability. While long-term sales have generally increased, profitability has been subject to considerable swings, with a particularly pronounced downturn in 2022 followed by a strong recovery in subsequent years. Further investigation would be required to determine the underlying drivers of these fluctuations.
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Comparison to Competitors
Merck & Co. Inc., net profit margin, long-term trends, comparison to competitors
| Merck & Co. Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 28.08% | 6.91% | 21.94% | 14.64% | 14.71% | 31.67% | 29.43% | 28.46% | 12.42% | 31.41% | 15.05% | 32.94% |
| Dec 31, 2024 | 26.68% | 7.59% | 12.77% | -18.53% | 16.33% | 23.51% | 1.68% | 15.84% | 12.62% | 31.07% | 14.77% | -4.86% |
| Dec 31, 2023 | 0.61% | 8.95% | 24.96% | 17.83% | 19.94% | 15.36% | 21.03% | 41.28% | 3.56% | 30.14% | 13.99% | 36.68% |
| Dec 31, 2022 | 24.49% | 20.39% | 26.42% | 13.71% | 22.91% | 21.88% | 17.02% | 18.90% | 31.01% | 35.64% | 15.47% | 37.20% |
| Dec 31, 2021 | 26.79% | 20.54% | 24.25% | 15.08% | 21.84% | 19.71% | 23.05% | 22.26% | 26.76% | 50.25% | 19.70% | 30.92% |
| Dec 31, 2020 | 14.72% | 10.08% | 29.97% | -21.20% | 16.36% | 25.24% | 0.51% | 17.82% | 22.53% | 41.35% | 19.79% | 43.70% |
| Dec 31, 2019 | 21.01% | 23.69% | 35.32% | 13.15% | 16.80% | 37.27% | 24.35% | 18.42% | 31.45% | 26.91% | 14.47% | 28.27% |
| Dec 31, 2018 | 14.71% | 17.36% | 37.25% | 21.81% | 13.33% | 13.16% | 25.16% | 18.75% | 20.79% | 36.42% | 12.06% | 68.80% |
| Dec 31, 2017 | 5.97% | 18.82% | 9.08% | 4.85% | 13.60% | -0.89% | 18.03% | 1.70% | 40.55% | 20.41% | 10.64% | 10.59% |
| Dec 31, 2016 | 9.85% | 23.22% | 35.27% | 22.94% | 15.13% | 12.90% | 45.07% | 23.01% | 13.66% | 18.42% | 11.06% | -6.58% |
| Dec 31, 2015 | 11.25% | 22.50% | 33.13% | 9.45% | 16.33% | 12.07% | 56.32% | 21.99% | 14.25% | 15.50% | 11.64% | -53.89% |
| Dec 31, 2014 | 28.22% | 8.89% | 26.69% | 12.62% | 13.05% | 12.19% | 49.44% | 21.96% | 18.42% | 12.34% | 11.22% | -127.25% |
| Dec 31, 2013 | 10.00% | 21.97% | 27.93% | 15.64% | 14.10% | 20.27% | 28.46% | 19.40% | 42.65% | 20.16% | 9.73% | -36.72% |
| Dec 31, 2012 | 13.05% | 28.70% | 26.11% | 11.12% | 13.10% | 18.09% | 27.57% | 16.14% | 24.70% | 54.43% | 9.42% | -7.01% |
| Dec 31, 2011 | 13.05% | — | 24.08% | 17.46% | 13.50% | 17.90% | 34.60% | 14.87% | 14.84% | -49.74% | 11.34% | 2.10% |
| Dec 31, 2010 | 1.87% | — | 31.56% | 15.92% | 13.58% | 21.97% | 39.26% | 21.65% | 12.18% | -22.76% | 9.60% | -526.35% |
| Dec 31, 2009 | 47.04% | — | 32.09% | 56.42% | 10.30% | 19.82% | 40.74% | 19.82% | 17.27% | -17.88% | 8.41% | -630.27% |
| Dec 31, 2008 | 32.74% | — | 28.57% | 25.47% | 10.38% | -10.17% | 39.55% | 20.31% | 16.78% | -34.69% | 9.47% | -262.02% |
| Dec 31, 2007 | 13.54% | — | 22.12% | 11.19% | 12.42% | 15.85% | 43.27% | 17.31% | 16.82% | -84.46% | 7.81% | -196.61% |
| Dec 31, 2006 | 19.59% | — | 21.29% | 8.85% | 11.69% | 16.97% | -45.98% | 20.73% | 39.98% | -161.30% | 4.46% | -95.63% |
| Dec 31, 2005 | 21.04% | — | 30.56% | 15.62% | 11.24% | 13.52% | 44.99% | 20.61% | 15.76% | -144.19% | 8.48% | -126.43% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Merck & Co. Inc., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Merck & Co. Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2025 | 28.08% | 21.54% |
| Dec 31, 2024 | 26.68% | 12.30% |
| Dec 31, 2023 | 0.61% | 17.95% |
| Dec 31, 2022 | 24.49% | 22.55% |
| Dec 31, 2021 | 26.79% | 23.38% |
| Dec 31, 2020 | 14.72% | 14.07% |
| Dec 31, 2019 | 21.01% | 23.22% |
| Dec 31, 2018 | 14.71% | 19.82% |
| Dec 31, 2017 | 5.97% | 13.06% |
| Dec 31, 2016 | 9.85% | 20.78% |
| Dec 31, 2015 | 11.25% | 21.17% |
| Dec 31, 2014 | 28.22% | 21.24% |
| Dec 31, 2013 | 10.00% | 21.99% |
| Dec 31, 2012 | 13.05% | 18.53% |
| Dec 31, 2011 | 13.05% | 15.70% |
| Dec 31, 2010 | 1.87% | 15.16% |
| Dec 31, 2009 | 47.04% | 25.73% |
| Dec 31, 2008 | 32.74% | 18.17% |
| Dec 31, 2007 | 13.54% | 15.90% |
| Dec 31, 2006 | 19.59% | 22.24% |
| Dec 31, 2005 | 21.04% | 18.33% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Merck & Co. Inc., net profit margin, long-term trends, comparison to industry (health care)
| Merck & Co. Inc. | Health Care | |
|---|---|---|
| Dec 31, 2025 | 28.08% | 11.79% |
| Dec 31, 2024 | 26.68% | 8.84% |
| Dec 31, 2023 | 0.61% | 11.49% |
| Dec 31, 2022 | 24.49% | 14.65% |
| Dec 31, 2021 | 26.79% | 15.24% |
| Dec 31, 2020 | 14.72% | 10.27% |
| Dec 31, 2019 | 21.01% | 14.56% |
| Dec 31, 2018 | 14.71% | 12.61% |
| Dec 31, 2017 | 5.97% | 9.26% |
| Dec 31, 2016 | 9.85% | 12.80% |
| Dec 31, 2015 | 11.25% | 13.94% |
| Dec 31, 2014 | 28.22% | 14.40% |
| Dec 31, 2013 | 10.00% | 15.04% |
| Dec 31, 2012 | 13.05% | 13.92% |
| Dec 31, 2011 | 13.05% | 12.06% |
| Dec 31, 2010 | 1.87% | 11.90% |
| Dec 31, 2009 | 47.04% | 17.77% |
| Dec 31, 2008 | 32.74% | 13.00% |
| Dec 31, 2007 | 13.54% | 12.52% |
| Dec 31, 2006 | 19.59% | 15.30% |
| Dec 31, 2005 | 21.04% | 14.61% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).