Merck & Co., Inc. (NYSE: MRK) shares rose more than 2% intraday after the company reported fourth-quarter results that met earnings expectations and modestly exceeded revenue forecasts.

The pharmaceutical giant posted adjusted earnings per share of $2.04, in line with analyst estimates, while revenue increased 5% year over year to $16.4 billion, topping the $16.18 billion consensus estimate.

Growth was driven by continued strength in oncology and animal health, along with rising contributions from newer products. KEYTRUDA sales rose 7% to $8.37 billion during the quarter, while animal health revenue increased 8% to $1.51 billion, supported by strong livestock demand.

However, Merck's 2026 outlook disappointed investors. The company forecast earnings of $5.00 to $5.15 per share, well below analyst expectations of $5.63, reflecting a one-time charge of approximately $3.65 per share related to its acquisition of Cidara Therapeutics. Revenue for 2026 was projected at $65.5 billion to $67.0 billion, slightly below the $67.58 billion consensus.

For full-year 2025, Merck reported worldwide sales of $65.0 billion, representing 1% growth, or 2% excluding foreign exchange. KEYTRUDA generated $31.7 billion in annual sales, while newer products WINREVAIR and CAPVAXIVE contributed $1.4 billion and $759 million, respectively.