Why Merck Stock Jumped 40%?
Merck (MRK)’s stock skyrocketed 41%, fueled less by revenue and more by sharper profits and soaring investor confidence. From a pivotal Q3 earnings beat to the FDA nod on Keytruda’s new form and a stellar Wells Fargo upgrade, multiple catalysts sparked this surge—let’s unpack the key drivers behind the rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5292025 | 11252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 74.9 | 105.7 | 41.1% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 63,922.0 | 64,235.0 | 0.5% |
| Net Income Margin (%) | 27.3% | 29.6% | 8.6% |
| P/E Multiple | 10.8 | 13.9 | 27.8% |
| Shares Outstanding (Mil) | 2,523.0 | 2,495.0 | 1.1% |
| Cumulative Contribution | 41.0% |
So what is happening here? The stock soared 41%, driven by a modest 0.5% revenue increase, a strong 8.6% boost in net margin, and a hefty 28% rise in the P/E multiple. Let’s explore what’s behind these moves.
Here Is Why Merck Stock Moved
- Q3 2025 Earnings: Q3 revenue of $17.3B (+4%), non-GAAP EPS $2.58, raised 2025 guidance. Strong Keytruda sales.
- FDA KEYTRUDA Approval: FDA approved KEYTRUDA+Padcev for MIBC, a first-in-class regimen, expanding market for Keytruda.
- Wells Fargo Upgrade: Analyst upgraded MRK to Overweight on pipeline progress and confidence in post-Keytruda growth.
- Keytruda SubQ Launch: Subcutaneous KEYTRUDA QLEX approved/launched in EU, bolstering future revenue post-LOE.
- Q2 2025 Earnings: Q2 revenue $15.8B (-2%), non-GAAP EPS $2.13. Focused on pipeline investment and H2 growth.
Our Current Assesment Of MRK Stock
Opinion: We currently find MRK stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell MRK Stock to see what drives our current opinion.
Risk: A good way to gauge risk with MRK is to check its drops during major market selloffs. It lost about 63% in the Global Financial Crisis and roughly 38% in the Dot-Com Bubble. Even less severe shocks hit it hard — like a 27% fall during the Covid pandemic and around 20% in the Inflation Shock. The 2018 correction wasn’t much kinder, with an 18% dip. MRK may have solid fundamentals, but history shows it’s not immune when markets turn sour.
MRK stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.