Merck & Co., Inc.
For the period ended Dec 31, 2025. Filed Feb 24, 2026.
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FY2025 · Filed Feb 24, 2026
MRK$146.73-0.1%Stored close · as of Nov 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Financial Statements
(a)Financial Statements
The consolidated balance sheet of Merck & Co., Inc. and subsidiaries as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, 2025, the notes to consolidated financial statements, and the report dated February 24, 2026 of PricewaterhouseCoopers LLP, independent registered public accounting firm, are as follows:
Consolidated Statement of Income
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Sales | $65,011 | $64,168 | $60,115 |
| Costs, Expenses and Other | |||
| Cost of sales | 16,382 | 15,193 | 16,126 |
| Selling, general and administrative | 10,733 | 10,816 | 10,504 |
| Research and development | 15,789 | 17,938 | 30,531 |
| Restructuring costs | 889 | 309 | 599 |
| Other (income) expense, net | 151 | (24) | 466 |
| 43,944 | 44,232 | 58,226 | |
| Income Before Taxes | 21,067 | 19,936 | 1,889 |
| Taxes on Income | 2,804 | 2,803 | 1,512 |
| Net Income | 18,263 | 17,133 | 377 |
| Less: Net Income Attributable to Noncontrolling Interests | 9 | 16 | 12 |
| Net Income Attributable to Merck & Co., Inc. | $18,254 | $17,117 | $365 |
| Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders | $7.30 | $6.76 | $0.14 |
| Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders | $7.28 | $6.74 | $0.14 |
Consolidated Statement of Comprehensive Income (Loss)
($ in millions)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Net Income Attributable to Merck & Co., Inc. | $18,254 | $17,117 | $365 |
| Other Comprehensive Income (Loss) Net of Taxes: | |||
| Net unrealized (loss) income on derivatives, net of reclassifications | (347) | 266 | (97) |
| Benefit plan net gain (loss) and prior service credit (cost), net of amortization | 828 | 466 | (385) |
| Cumulative translation adjustment | 177 | (516) | 89 |
| 658 | 216 | (393) | |
| Comprehensive Income (Loss) Attributable to Merck & Co., Inc. | $18,912 | $17,333 | $(28) |
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Balance Sheet
December 31
| 2025 | 2024 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $14,565 | $13,242 |
| Short-term investments | — | 447 |
| Accounts receivable (net of allowance for doubtful accounts of $97 in 2025 and $89 in 2024) | 11,775 | 10,278 |
| Inventories (excludes inventories of $5,681 in 2025 and $4,193 in 2024classified in Other assets - see Note 7) | 6,658 | 6,109 |
| Other current assets | 10,518 | 8,706 |
| Total current assets | 43,516 | 38,782 |
| Investments | 956 | 463 |
| Property, Plant and Equipment (at cost) | ||
| Land | 321 | 307 |
| Buildings | 17,983 | 16,360 |
| Machinery, equipment and office furnishings | 19,760 | 18,283 |
| Construction in progress | 9,166 | 7,984 |
| 47,230 | 42,934 | |
| Less: accumulated depreciation | 21,914 | 19,155 |
| 25,316 | 23,779 | |
| Goodwill | 21,579 | 21,668 |
| Other Intangibles, Net | 26,681 | 16,370 |
| Other Assets | 18,818 | 16,044 |
| $136,866 | $117,106 | |
| Liabilities and Equity | ||
| Current Liabilities | ||
| Loans payable and current portion of long-term debt | $2,589 | $2,649 |
| Trade accounts payable | 4,404 | 4,079 |
| Accrued and other current liabilities | 14,468 | 15,694 |
| Income taxes payable | 4,726 | 3,914 |
| Dividends payable | 2,140 | 2,084 |
| Total current liabilities | 28,327 | 28,420 |
| Long-Term Debt | 46,750 | 34,462 |
| Deferred Income Taxes | 1,439 | 1,387 |
| Other Noncurrent Liabilities | 7,688 | 6,465 |
| Merck & Co., Inc. Stockholders’ Equity | ||
| Common stock, $0.50 par valueAuthorized - 6,500,000,000 sharesIssued - 3,577,103,522 shares in 2025 and 2024 | 1,788 | 1,788 |
| Other paid-in capital | 45,029 | 44,704 |
| Retained earnings | 73,075 | 63,069 |
| Accumulated other comprehensive loss | (4,287) | (4,945) |
| 115,605 | 104,616 | |
| Less treasury stock, at cost: 1,102,476,756 shares in 2025 and 1,049,466,187 shares in 2024 | 62,999 | 58,303 |
| Total Merck & Co., Inc. stockholders’ equity | 52,606 | 46,313 |
| Noncontrolling Interests | 56 | 59 |
| Total equity | 52,662 | 46,372 |
| $136,866 | $117,106 | |
Consolidated Statement of Equity
| CommonStock | OtherPaid-InCapital | RetainedEarnings | AccumulatedOtherComprehensiveLoss | TreasuryStock | Non-controllingInterests | Total | |
|---|---|---|---|---|---|---|---|
| Balance January 1, 2023 | $1,788 | $44,379 | $61,081 | $(4,768) | $(56,489) | $67 | $46,058 |
| Net income attributable to Merck & Co., Inc. | — | — | 365 | — | — | — | 365 |
| Other comprehensive loss, net of taxes | — | — | — | (393) | — | — | (393) |
| Cash dividends declared on common stock ($2.96 per share) | — | — | (7,551) | — | — | — | (7,551) |
| Treasury stock shares purchased | — | — | — | — | (1,346) | — | (1,346) |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 12 | 12 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (25) | (25) |
| Share-based compensation plans and other | — | 130 | — | — | 385 | — | 515 |
| Balance December 31, 2023 | 1,788 | 44,509 | 53,895 | (5,161) | (57,450) | 54 | 37,635 |
| Net income attributable to Merck & Co., Inc. | — | — | 17,117 | — | — | — | 17,117 |
| Other comprehensive income, net of taxes | — | — | — | 216 | — | — | 216 |
| Cash dividends declared on common stock ($3.12 per share) | — | — | (7,943) | — | — | — | (7,943) |
| Treasury stock shares purchased | — | — | — | — | (1,306) | — | (1,306) |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 16 | 16 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (12) | (12) |
| Share-based compensation plans and other | — | 195 | — | — | 453 | 1 | 649 |
| Balance December 31, 2024 | 1,788 | 44,704 | 63,069 | (4,945) | (58,303) | 59 | 46,372 |
| Net income attributable to Merck & Co., Inc. | — | — | 18,254 | — | — | — | 18,254 |
| Other comprehensive income, net of taxes | — | — | — | 658 | — | — | 658 |
| Cash dividends declared on common stock ($3.28 per share) | — | — | (8,248) | — | — | — | (8,248) |
| Treasury stock shares purchased | — | — | — | — | (5,084) | — | (5,084) |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 9 | 9 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (12) | (12) |
| Share-based compensation plans and other | — | 325 | — | — | 388 | — | 713 |
| Balance December 31, 2025 | $1,788 | $45,029 | $73,075 | $(4,287) | $(62,999) | $56 | $52,662 |
Consolidated Statement of Cash Flows
($ in millions)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Net income | $18,263 | $17,133 | $377 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Amortization | 2,793 | 2,395 | 2,044 |
| Depreciation | 3,045 | 2,104 | 1,828 |
| Intangible asset impairment charges | 55 | 39 | 792 |
| Income from investments in equity securities, net | (368) | (14) | (340) |
| Charges for certain research and development asset acquisitions | — | 3,456 | 11,409 |
| Deferred income taxes | (1,671) | (1,249) | (1,899) |
| Share-based compensation | 820 | 761 | 645 |
| Other | 511 | 510 | 355 |
| Net changes in assets and liabilities: | |||
| Accounts receivable | (1,090) | (244) | (1,148) |
| Inventories | (1,180) | (835) | (816) |
| Trade accounts payable | 110 | 182 | (380) |
| Accrued and other current liabilities | (1,841) | (2,328) | 1,783 |
| Income taxes payable | 137 | 1,023 | 214 |
| Noncurrent liabilities | 195 | (49) | 456 |
| Other | (3,307) | (1,416) | (2,314) |
| Net Cash Provided by Operating Activities | 16,472 | 21,468 | 13,006 |
| Cash Flows from Investing Activities | |||
| Capital expenditures | (4,112) | (3,372) | (3,863) |
| Purchases of securities and other investments | (1,207) | (519) | (955) |
| Proceeds from sales of securities and other investments | 1,678 | 377 | 1,658 |
| Proceeds from sale of Seagen Inc. common stock | — | — | 1,145 |
| Acquisition of Verona Pharma plc, net of cash acquired | (10,042) | — | — |
| Acquisition of Eyebiotech Limited, net of cash acquired | — | (1,344) | — |
| Acquisition of Elanco Animal Health Incorporated aqua business | — | (1,303) | — |
| Acquisition of Harpoon Therapeutics, Inc., net of cash acquired | — | (746) | — |
| Acquisition of MK-1045 from Curon Pharmaceutical | — | (700) | — |
| Acquisition of Prometheus Biosciences, Inc., net of cash acquired | — | — | (10,705) |
| Acquisition of Imago BioSciences Inc., net of cash acquired | — | — | (1,327) |
| Other | (58) | (127) | (36) |
| Net Cash Used in Investing Activities | (13,741) | (7,734) | (14,083) |
| Cash Flows from Financing Activities | |||
| Payments on debt | (2,503) | (1,290) | (1,755) |
| Proceeds from issuance of debt | 13,880 | 3,599 | 5,939 |
| Purchases of treasury stock | (5,084) | (1,306) | (1,346) |
| Dividends paid to stockholders | (8,176) | (7,840) | (7,445) |
| Proceeds from exercise of stock options | 92 | 177 | 125 |
| Other | (131) | (372) | (328) |
| Net Cash Used in Financing Activities | (1,922) | (7,032) | (4,810) |
| Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 563 | (293) | 23 |
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 1,372 | 6,409 | (5,864) |
| Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes $76, $68 and $79 of restricted cash at January 1, 2025, 2024 and 2023, respectively, included in Other current assets) | 13,318 | 6,909 | 12,773 |
| Cash, Cash Equivalents and Restricted Cash at End of Year (includes $125, $76 and $68 of restricted cash at December 31, 2025, 2024 and 2023, respectively, included in Other current assets) | $14,690 | $13,318 | $6,909 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.