Why Merck Stock Jumped 40%?
Merck (MRK)’s stock skyrocketed 41%, fueled not just by a slight revenue bump but a sharp profit surge and soaring investor confidence. Behind the rally: a blockbuster earnings beat, breakthrough drug approvals, and promising cancer treatment data hinting at a game-changing growth story.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 7312025 | 1272026 | Change | |
|---|---|---|---|
| Stock Price ($) | 76.7 | 107.9 | 40.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 63,922.0 | 64,235.0 | 0.5% |
| Net Income Margin (%) | 27.3% | 29.6% | 8.6% |
| P/E Multiple | 11.1 | 14.1 | 27.4% |
| Shares Outstanding (Mil) | 2,523.0 | 2,495.0 | 1.1% |
| Cumulative Contribution | 40.7% |
So what is happening here? The stock surged 41%, driven by a modest 0.5% revenue increase, a solid 8.6% lift in net margin, and a notable 27% jump in the P/E multiple. Let’s see what’s behind these moves.
Here Is Why Merck Stock Moved
- Q3 2025 Earnings Beat: Strong Q3 2025 results, incl. 10% Keytruda growth, beat estimates & raised FY25 guidance.
- Keytruda SC Approval: FDA approved Keytruda QLEX (SC) in Sep/Oct 2025 for solid tumors, enhancing convenience.
- Oral PCSK9 Success: Positive Phase 3 results for Enlicitide (oral PCSK9 inhibitor) announced Oct 2025.
- Growth Outlook Boost: Merck raised future revenue projections from new drivers to $70B by mid-2030s on Jan 12, 2026.
- Melanoma Vaccine Data: Positive long-term data for personalized cancer vaccine with Keytruda in melanoma on Jan 20.
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.