Merck & Co., Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data Merck & Co., Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	39,807	40,122	42,294	39,121	41,518	48,704	59,283	60,115	64,168	65,011
Cost of revenue	14,030	12,912	13,509	12,016	13,618	13,626	17,411	16,126	15,193	16,382
Gross profit	25,777	27,210	28,785	27,105	27,900	35,078	41,872	43,989	48,975	48,629
Research and development	10,261	10,339	9,752	9,724	13,397	12,245	13,548	30,531	17,938	15,789
Selling, general and administrative	10,017	10,074	10,102	9,455	8,955	9,634	10,042	10,504	10,816	10,733
Interest expense	693	754	772	893	831	806	962	1,146	1,271	1,357
Interest income	328	385	343	274	59	36	157	365	415	343
Other non-operating income	-189	500	402	-129	890	1,341	-1,501	-466	24	-151
Pre-tax income	4,659	6,521	8,701	7,171	5,863	13,879	16,444	1,889	19,936	21,067
Income tax	718	4,103	2,508	1,565	1,340	1,521	1,918	1,512	2,803	2,804
Income from continuing operations				5,690	4,519	12,345	14,519	365
Net income to minority interests	21	24	-27	-66	15	16	7	12	16	9
Net income	3,920	2,394	6,220	9,843	7,067	13,049	14,519	365	17,117	18,254
EPS, basic	1.42	0.88	2.34	3.84	2.79	5.16	5.73	0.14	6.76	7.30
EPS, diluted	1.41	0.87	2.32	3.81	2.78	5.14	5.71	0.14	6.74	7.28
Shares, basic (weighted)	2,766	2,730	2,664	2,565	2,530	2,530	2,532	2,537	2,532	2,502
Shares, diluted (weighted)	2,787	2,748	2,679	2,580	2,541	2,538	2,542	2,547	2,541	2,507
Dividend per share	1.85	1.89	1.99	2.26	2.48	2.64	2.80	2.96	3.12	3.28

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	6,515	6,092	7,965	9,676	8,050	8,096	12,694	6,841	13,242	14,565
Short-term investments	7,826	2,406	899	774	0	0	498	252	447	0
Receivables	7,018	6,873	7,071	6,778	6,803	9,230	9,450	10,349	10,278	11,775
Inventory	4,866	5,096	5,440	5,978	5,554	5,953	5,911	6,358	6,109	6,658
Other current assets	4,389	4,299	4,500	4,277	4,674	6,987	7,169	8,368	8,706	10,518
Total current assets	30,614	24,766	25,875	27,483	27,764	30,266	35,722	32,168	38,782	43,516
Property, plant and equipment	12,026	12,439	13,291	14,297	17,000	19,279	21,422	23,051	23,779	25,316
Lease right-of-use assets				1,073	1,688	1,586	1,346	1,437	1,370	1,507
Goodwill	18,162	18,284	18,253	18,069	18,882	21,264	21,204	21,197	21,668	21,579
Intangible assets	17,305	14,183	13,104	14,196	14,101	22,933	20,269	18,011	16,370	26,681
Long-term investments	11,416	12,125	6,233	1,469	785	370	1,015	252	463	956
Other non-current assets							9,528	11,996	16,044	18,818
Total assets	95,377	87,872	82,637	84,397	91,588	105,694	109,160	106,675	117,106	136,866
Accounts payable	2,807	3,102	3,318	3,738	4,327	4,609	4,264	3,922	4,079	4,404
Short-term debt	568	3,057	5,308	3,610	6,431	2,412	1,946	1,372	2,649	2,589
Total current liabilities	17,204	18,614	22,206	22,220	27,327	23,872	24,239	25,694	28,420	28,327
Long-term debt	24,274	21,353	19,806	22,736	25,360	30,690	28,745	33,683	34,462	46,750
Lease liabilities				768	1,335	1,225	1,013	928	877	901
Other non-current liabilities	8,514	11,117	12,041	11,970	12,306	9,434	8,323	8,792	6,465	7,688
Total liabilities	55,069	53,303	55,755	58,396	66,184	67,437	63,102	69,040	70,734	84,204
Total debt	24,800	24,400	25,100	24,636	27,660	32,990	30,445	34,983	36,962	49,050
Paid-in capital	39,939	39,902	38,808	39,660	39,588	44,238	44,379	44,509	44,704	45,029
Retained earnings	44,133	41,350	42,579	46,602	47,362	53,696	61,081	53,895	63,069	73,075
Treasury stock	-40,546	-43,794	-50,929	-55,950	-56,787	-57,109	-56,489	-57,450	-58,303	-62,999
Other comprehensive income	-5,226	-4,910	-5,545	-6,193	-6,634	-4,429	-4,768	-5,161	-4,945	-4,287
Shareholders' equity	40,088	34,336	26,701	25,907	25,317	38,184	45,991	37,581	46,313	52,606
Minority interests	220	233	181	94	87	73	67	54	59	56
Total equity	40,308	34,569	26,882	26,001	25,404	38,257	46,058	37,635	46,372	52,662
Total liabilities and equity	95,377	87,872	82,637	84,397	91,588	105,694	109,160	106,675	117,106	136,866

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	3,941	2,418	6,193	9,777	7,082	13,049	14,526	377	17,133	18,263
Depreciation and amortization	5,471	4,676	4,519	3,652	1,669	1,578	1,824	1,828	2,104	3,045
Stock-based compensation	300	312	348	388	441	479	541	645	761	820
Deferred income tax	-1,521	-2,621	-509	-560	-566	187	-1,568	-1,899	-1,249	-1,671
Change in receivables	-619	297	-418	92	-1,002	-2,033	-644	-1,148	-244	-1,090
Change in inventory	206	-145	-911	-473	-895	-674	-161	-816	-835	-1,180
Cash from operations	10,376	6,451	10,922	13,440	10,253	13,122	19,095	13,006	21,468	16,472
Capital expenditures	-1,614	-1,888	-2,615	-3,369	-4,429	-4,448	-4,388	-3,863	-3,372	-4,112
Acquisitions	-780	-396	-431	-294	-1,365	-179	0	0	0	-10,042
Purchases of investments	-15,651	-10,739	-7,994	-3,202	-95	-1	-1,204	-955	-519	-1,207
Sales and maturities of investments	14,353	15,664	15,252	8,622	2,812	1,026	721
Cash from investing	-3,210	2,679	4,314	-2,629	-9,443	-16,421	-4,960	-14,083	-7,734	-13,741
Debt issued	1,079	0	0	4,958	4,419	7,936	0	5,939	3,599	13,880
Debt repaid	-2,386	-1,103	-4,287	0	-1,957	-2,319	-2,251	-1,755	-1,290	-2,503
Stock issued	939	499	591	361	89	202	384	125	177	92
Share buybacks	-3,434	-4,014	-9,091	-4,780	-1,281	-840	0	-1,346	-1,306	-5,084
Dividends paid	-5,124	-5,167	-5,172	-5,695	-6,215	-6,610	-7,012	-7,445	-7,840	-8,176
Cash from financing	-9,044	-10,006	-13,160	-8,861	-2,832	3,097	-9,119	-4,810	-7,032	-1,922
Exchange rate effect	-131	457	-205	17	253	-133	-410	23	-293	563
Net change in cash	-2,009	-419	1,871	1,967	-1,769	14	4,606	-5,864	6,409	1,372
Free cash flow	8,762	4,563	8,307	10,071	5,824	8,674	14,707	9,143	18,096	12,360
Interest paid	686	723	777	841	822	779	937	1,100	1,300	1,300
Income taxes paid	1,800	4,900	1,500	4,500	2,740	2,412	3,239	4,338	3,928	6,086

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $148.78 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	73.0%	Gross profit / revenue.
Pre-tax margin	8.9%	Pre-tax income / revenue.
Net margin	4.8%	Net income / revenue.
FCF margin	24.1%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	30.0%	Cash from operations / revenue.
Effective tax rate	46.7%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	7.6%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	2.4%	Net income / average total assets.
R&D / revenue	45.7%	Research and development expense / revenue.
SG&A / revenue	16.7%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	1.3%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	5.9%	Capital expenditures / revenue.
D&A / revenue	4.8%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	1.3%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	3.1%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	9.4%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	-0.7%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	5.1%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	11.8%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	6.6%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	7.9%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	20.9%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	8.0%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	8.4%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	21.2%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	-23.3%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	-4.8%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	9.9%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	-31.7%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	-5.6%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	16.2%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Dividend per share growth, 1y	5.1%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	5.4%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share CAGR, 5y	5.8%	Compound annual growth of dividend per share over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	13.6%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	4.6%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	15.8%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	16.9%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	7.8%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	8.4%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	-1.3%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	-0.5%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	-0.3%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	1.32x	Current assets / current liabilities.
Quick ratio	0.71x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.26x	(Cash + short-term investments) / current liabilities.
Debt / equity	1.22x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	39.4%	Total debt / total assets.
Liabilities / assets	67.7%	Total liabilities / total assets.
Net debt	$43.94B	Total debt - cash - short-term investments. Negative means more cash than debt.
Working capital	$8.95B	Current assets - current liabilities.
Goodwill and intangibles / assets	35.9%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$4.63B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.51x	Revenue / average total assets.
Fixed asset turnover	2.59x	Revenue / average property, plant and equipment.
Inventory turnover	2.90x	Cost of revenue / average inventory.
Days inventory	126 days	365 x average inventory / cost of revenue.
Receivables turnover	5.30x	Revenue / average receivables.
Days sales outstanding	69 days	365 x average receivables / revenue.
Days payables	78 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	117 days	Days inventory + days sales outstanding - days payables.
FCF conversion	506.2%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	19.6%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$1.28	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$26.95	Revenue / diluted weighted shares.
FCF per share	$6.50	Free cash flow / diluted weighted shares.
Operating cash flow per share	$8.08	Cash from operations / diluted weighted shares.
Book value per share	$16.98	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	-$1.87	Tangible book value / shares outstanding.
Cash per share	$2.89	(Cash + short-term investments) / shares outstanding.
Payout ratio	261.5%	Dividends paid / net income, when net income is positive.
Dividends / FCF	51.7%	Dividends paid / free cash flow, when free cash flow is positive.
Buybacks / FCF	26.2%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$367.07B	Share price x shares outstanding.
Enterprise value	$411.01B	Market cap + total debt - cash - short-term investments.
P/E	116x	Market cap / net income. Only when net income is positive.
P/S	5.51x	Market cap / revenue.
P/B	8.75x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	22.9x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	18.4x	Market cap / cash from operations, when positive.
EV/Sales	6.17x	Enterprise value / revenue.
EV/FCF	25.6x	Enterprise value / free cash flow, when both are positive.
FCF yield	4.4%	Free cash flow / market cap.
Earnings yield	0.9%	Net income / market cap (the inverse of P/E).
Dividend yield	2.3%	Dividends paid over the period / market cap.
Shareholder yield	3.4%	(Dividends paid + share buybacks) / market cap.
PEG	13.7x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was Merck & Co., Inc.'s revenue in fiscal 2025?

Merck & Co., Inc. reported revenue of $65.01B for fiscal 2025, 1.3% higher than the year before.

Was Merck & Co., Inc. profitable in fiscal 2025?

Yes. Net income was $18.25B, a net margin of 28.1%.

How much free cash flow did Merck & Co., Inc. generate in fiscal 2025?

Cash from operations of $16.47B minus capital expenditures of $4.11B left free cash flow of $12.36B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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