Merck (MRK) stock
Health Care · Pharmaceuticals
Merck (MRK) is a Pharmaceuticals company in the Health Care sector, headquartered in Kenilworth, New Jersey. As of October 23, 2026, MRK closed at $145.27, a market capitalization of $358.41 billion, the 30th largest company in the S&P 500. Over the last twelve months it generated $66.57 billion in revenue (+5% year over year) and $16.06 billion in free cash flow. The stock trades at 117.2x trailing earnings and 15.7x forward earnings.
- 1-year total return: +71.5% (dividends reinvested)
- 5-year return: +15.8% a year
- 52-week range: $82.01 – $156.92
- Gross margin 75.9%, operating margin -0.2%
- Dividend yield: 2.34%, 15 straight years of increases
- FI Handbook report card: C across 10 metrics
- 5th largest of 60 Health Care stocks in the S&P 500
MRK price chart
1Y price change: +66.6% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| MRK | -1.9% | +40.9% | +71.5% | +15.5% | +15.8% | +12.9% | +12.7% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1962.
MRK key statistics
- Market cap
- $358.4B
- #30 in S&P 500
- P/E (TTM)
- 117.2x
- Forward P/E
- 15.7x
- EPS (TTM)
- $1.24
- Revenue (TTM)
- $66.6B
- +5%
- Free cash flow
- $16.1B
- Gross margin
- 75.9%
- Operating margin
- -0.2%
- Return on equity
- 7.0%
- Dividend yield
- 2.34%
- 52-week range
- $82.01 – $156.92
- Beta
- 0.22
- Price / sales
- 5.4x
- EV / EBITDA
- 14.0x
- Debt / equity
- 1.28x
- Employees
- 73,000
MRK report card
CTen fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth5.1%C
- Gross margin75.9%A
- Operating margin-0.2%F
- FCF margin24.1%B
- Return on equity7.0%D
- Net debt / EBITDA1.6xC
- Forward P/E15.7xB
- PEG ratio2.7xD
- Shareholder yield3.8%B
- Share count change / yr-0.3%C
Merck & financials
Revenue went from $39.8B in fiscal 2016 to $65.0B in fiscal 2025, growing 5.6% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $39.8B | $40.1B | $42.3B | $39.1B | $41.5B | $48.7B | $59.3B | $60.1B | $64.2B | $65.0B |
| Gross profit | $25.8B | $27.2B | $28.8B | $27.1B | $27.9B | $35.1B | $41.9B | $44.0B | $49.0B | $48.6B |
| Net income | $3.9B | $2.4B | $6.2B | $9.8B | $7.1B | $13.0B | $14.5B | $365.0M | $17.1B | $18.3B |
| EPS (diluted) | $1.35 | $0.83 | $2.21 | $3.81 | $2.78 | $5.14 | $5.71 | $0.14 | $6.74 | $7.28 |
| Free cash flow | $8.8B | $4.6B | $8.3B | $10.1B | $5.8B | — | $14.7B | $9.1B | $18.1B | $12.4B |
| Buybacks | $3.4B | $4.0B | $9.1B | $4.8B | $1.3B | $840.0M | $0 | $1.3B | $1.3B | $5.1B |
| Dividends paid | $5.1B | $5.2B | $5.2B | $5.7B | $6.2B | $6.6B | $7.0B | $7.4B | $7.8B | $8.2B |
| Diluted shares | 2.9B | 2.9B | 2.8B | 2.6B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into MRK?
A reverse DCF asks what growth the current price requires. With an enterprise value of $405.2B and $16.1B of trailing free cash flow, Merck & needs to grow free cash flow about 16.4% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 4.2% a year over the last five years.
P/E ratio history
Current 20.0x vs. median 23.2x (10th–90th percentile 10.3x–117.5x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
MRK dividend
- Dividend yield
- 2.34%
- Annual dividend
- $3.40
- Years of increases
- 15
- 5-yr dividend growth
- 6.7%
- per year
- Payout ratio
- 267%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
MRK earnings
Next report: October 29, 2026. Merck & has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $16.6B (+5% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Aug 4, 2026 | $-0.26 | $-0.13 | +49.4% |
| Apr 30, 2026 | $-1.47 | $-1.28 | +13.2% |
| Feb 3, 2026 | $2.01 | $2.04 | +1.5% |
| Oct 30, 2025 | $2.35 | $2.58 | +9.8% |
| Jul 29, 2025 | $2.03 | $2.13 | +5.0% |
| Apr 24, 2025 | $2.14 | $2.22 | +4.0% |
| Feb 4, 2025 | $1.67 | $1.72 | +3.3% |
| Oct 31, 2024 | $1.57 | $1.57 | +0.0% |
Stocks like MRK
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 LLY Eli Lilly and | -2.54% | +56% | $1.1T | 42.7x | Compare |
 JNJ Johnson & Johnson | -1.42% | +40% | $635.1B | 40.0x | Compare |
 PFE Pfizer | -1.28% | +30% | $171.2B | 39.5x | Compare |
 BMY Bristol-Myers Squibb | -2.41% | +47% | $125.6B | 13.5x | Compare |
 ZTS Zoetis | -1.18% | -44% | $33.5B | 13.3x | Compare |
 VTRS Viatris | -2.60% | +81% | $20.7B | — | Compare |
 ABBV AbbVie | +0.16% | +29% | $504.8B | 80.7x | Compare |
 UNH UnitedHealth | -1.62% | +19% | $375.3B | 26.9x | Compare |
MRK news
- Beyond Keytruda: The Critical Pipeline Metrics to Watch in Merck’s Q3 Results on Oct. 29 · Oct 25, 2026
- Can Merck (MRK) Stay Undervalued If Cash Flow Keeps Growing? · Oct 24, 2026
- Moderna stock extends losses as investors digest melanoma vaccine trial data · Oct 23, 2026
- Merck And Moderna Diverge On Cancer Vaccine Results. Do They Still Have A Viable Drug? · Oct 23, 2026
- AbbVie’s Dividend Survived Humira’s Patent Cliff. Will Merck and Amgen’s? · Oct 23, 2026
MRK stock FAQ
What is MRK's market cap?
Merck's market capitalization is $358.41 billion as of October 23, 2026, ranking 30th in the S&P 500.
What is MRK's P/E ratio?
MRK trades at a trailing price-to-earnings ratio of 117.2x and a forward P/E of 15.7x. Its median P/E over the period we track is 23.2x.
Does MRK pay a dividend?
Yes. Merck pays $3.40 per share a year, a 2.34% yield. It has raised its dividend 15 years in a row. Dividends grew 6.7% a year over the last five years.
How much has MRK stock returned?
Including reinvested dividends, MRK returned +71.5% over one year, +15.8% a year over five years, +12.9% a year over ten years through October 23, 2026.
Is MRK stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Merck must grow free cash flow about 16% a year for the next decade. Its free cash flow grew 4% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does MRK report earnings?
Merck is expected to report earnings on October 29, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Merck have?
Merck has about 73,000 full-time employees, or $911,904 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology