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Merck & Co. MRK Gross margin

Gross margin at other companies

Bristol-Myers Squibb logo
Bristol-Myers SquibbBMY
70.5%0.0pp
Pfizer logo
PfizerPFE
73.5%+1.2pp
Johnson & Johnson logo
Johnson & JohnsonJNJ
67.8%-0.5pp
United Therapeutics logo
United TherapeuticsUTHR
86.6%-2.4pp
Amgen logo
AmgenAMGN
68.3%+5.3pp
Abbott logo
AbbottABT
56.3%+0.4pp

Other financials

Income statement

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Revenue$16.3B+4.9%
Gross profit$12.1B-0.2%
Net income-$4.2B-183%
EPS (diluted)-$1.72-186%

Balance sheet

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Cash & equivalents$5.4B-38.2%
Total debt$49.1B+35.8%
Total equity$45.9B-5.1%
Total assets$128.69B+11.8%

Cash flow

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Operating cash flow$3.9B+56.7%
CapEx$991.0M-25.4%
Free cash flow$2.9B+150%

Valuation

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Market cap$285.12B+31.2%
Enterprise value$328.82B+34.2%
P/E31.9×+19.4×
P/S4.3×+0.9×

Profitability

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Net margin13.6%-13.7pp

Returns & leverage

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Return on equity19%-20.3pp
Debt / equity1.1×+0.3×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Merck & Co.’s reported figures.

Based on trailing twelve months.

The official record: Merck & Co.’s 10-Q, filed May 4, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Merck & Co.'s gross margin?
Merck & Co. (MRK) reported gross margin of 73.9% in Q1 2026.
How has Merck & Co.'s gross margin changed year-over-year?
Merck & Co.'s gross margin decreased by 3.3% year-over-year, from 76.4% to 73.9%.
What is the long-term trend for Merck & Co.'s gross margin?
Over 4 years (2021 to 2025), Merck & Co.'s gross margin has grown at a 2.7% compound annual growth rate (CAGR), from 273.9% to 305%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.