Merck & Co., Inc.MRK
Merck & Co., Inc. Segments Disclosure
Segment Reporting
The Company’s operations are principally managed on a product basis and include two operating segments, Pharmaceutical and Animal Health, both of which are reportable segments.
The Pharmaceutical segment includes human health pharmaceutical and vaccine products. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies, and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Human health vaccine products consist of preventive pediatric, adolescent and adult vaccines. The Company sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. A large component of pediatric and adolescent vaccine sales are made to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles.
The Animal Health segment discovers, develops, manufactures and markets a wide range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all major livestock and companion animal species. The Company also offers an extensive suite of digitally connected identification, traceability and monitoring products. The Company sells its products to veterinarians, distributors, animal producers, farmers and pet owners.
Sales of the Company’s products were as follows:
| Years Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Pharmaceutical: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oncology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Keytruda | $ | 18,829 | $ | 12,812 | $ | 31,641 | $ | 17,872 | $ | 11,610 | $ | 29,482 | $ | 15,114 | $ | 9,897 | $ | 25,011 | |||||||||||||||||||||||||||||||||||
Keytruda Qlex | 38 | 2 | 40 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Lynparza (1) | 683 | 767 | 1,450 | 626 | 685 | 1,311 | 607 | 592 | 1,199 | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Lenvima (1) | 737 | 316 | 1,053 | 705 | 305 | 1,010 | 657 | 303 | 960 | ||||||||||||||||||||||||||||||||||||||||||||
| Welireg | 603 | 113 | 716 | 466 | 43 | 509 | 209 | 10 | 218 | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Reblozyl (2) | 432 | 93 | 525 | 303 | 68 | 371 | 168 | 43 | 212 | ||||||||||||||||||||||||||||||||||||||||||||
| Vaccines | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gardasil/Gardasil 9 | 2,641 | 2,592 | 5,233 | 2,425 | 6,158 | 8,583 | 2,083 | 6,803 | 8,886 | ||||||||||||||||||||||||||||||||||||||||||||
| ProQuad/M-M-R II/Varivax | 1,885 | 566 | 2,451 | 1,919 | 566 | 2,485 | 1,837 | 531 | 2,368 | ||||||||||||||||||||||||||||||||||||||||||||
| Vaxneuvance | 459 | 366 | 825 | 461 | 347 | 808 | 561 | 103 | 665 | ||||||||||||||||||||||||||||||||||||||||||||
Capvaxive | 730 | 29 | 759 | 96 | 1 | 97 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| RotaTeq | 426 | 246 | 673 | 472 | 239 | 711 | 493 | 276 | 769 | ||||||||||||||||||||||||||||||||||||||||||||
Pneumovax 23 | 21 | 146 | 166 | 56 | 207 | 263 | 127 | 285 | 412 | ||||||||||||||||||||||||||||||||||||||||||||
| Hospital Acute Care | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bridion | 1,631 | 209 | 1,841 | 1,401 | 363 | 1,764 | 1,156 | 686 | 1,842 | ||||||||||||||||||||||||||||||||||||||||||||
| Prevymis | 475 | 503 | 978 | 371 | 414 | 785 | 264 | 341 | 605 | ||||||||||||||||||||||||||||||||||||||||||||
| Zerbaxa | 186 | 126 | 312 | 146 | 106 | 252 | 119 | 100 | 218 | ||||||||||||||||||||||||||||||||||||||||||||
| Dificid | 202 | 45 | 247 | 303 | 37 | 340 | 274 | 28 | 302 | ||||||||||||||||||||||||||||||||||||||||||||
Cardiometabolic and Respiratory | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Winrevair | 1,358 | 85 | 1,443 | 408 | 11 | 419 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Adempas/Verquvo (3) | 421 | 49 | 470 | 388 | 27 | 415 | 350 | 16 | 367 | ||||||||||||||||||||||||||||||||||||||||||||
| Adempas | — | 312 | 312 | — | 287 | 287 | — | 255 | 255 | ||||||||||||||||||||||||||||||||||||||||||||
Ohtuvayre | 178 | — | 178 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Virology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lagevrio | 101 | 278 | 380 | 176 | 787 | 964 | 10 | 1,418 | 1,428 | ||||||||||||||||||||||||||||||||||||||||||||
| Isentress/Isentress HD | 181 | 144 | 325 | 185 | 209 | 394 | 215 | 268 | 483 | ||||||||||||||||||||||||||||||||||||||||||||
Delstrigo | 56 | 250 | 306 | 56 | 193 | 249 | 49 | 152 | 201 | ||||||||||||||||||||||||||||||||||||||||||||
Pifeltro | 111 | 59 | 171 | 113 | 50 | 163 | 101 | 41 | 142 | ||||||||||||||||||||||||||||||||||||||||||||
| Neuroscience | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Belsomra | 82 | 104 | 186 | 72 | 150 | 222 | 81 | 150 | 231 | ||||||||||||||||||||||||||||||||||||||||||||
| Immunology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Simponi | — | — | — | — | 543 | 543 | — | 710 | 710 | ||||||||||||||||||||||||||||||||||||||||||||
| Remicade | — | — | — | — | 114 | 114 | — | 187 | 187 | ||||||||||||||||||||||||||||||||||||||||||||
| Diabetes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Januvia | 999 | 605 | 1,604 | 469 | 865 | 1,334 | 1,151 | 1,039 | 2,189 | ||||||||||||||||||||||||||||||||||||||||||||
| Janumet | 268 | 672 | 940 | 161 | 774 | 935 | 223 | 954 | 1,177 | ||||||||||||||||||||||||||||||||||||||||||||
Other pharmaceutical (4) | 676 | 2,244 | 2,917 | 640 | 1,951 | 2,590 | 690 | 1,856 | 2,546 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Pharmaceutical segment sales | 34,409 | 23,733 | 58,142 | 30,290 | 27,110 | 57,400 | 26,539 | 27,044 | 53,583 | ||||||||||||||||||||||||||||||||||||||||||||
| Animal Health: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Livestock | 807 | 3,089 | 3,896 | 732 | 2,729 | 3,462 | 700 | 2,637 | 3,337 | ||||||||||||||||||||||||||||||||||||||||||||
| Companion Animal | 1,146 | 1,312 | 2,458 | 1,129 | 1,287 | 2,415 | 1,104 | 1,184 | 2,288 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Animal Health segment sales | 1,953 | 4,401 | 6,354 | 1,861 | 4,016 | 5,877 | 1,804 | 3,821 | 5,625 | ||||||||||||||||||||||||||||||||||||||||||||
| Total segment sales | 36,362 | 28,134 | 64,496 | 32,151 | 31,126 | 63,277 | 28,343 | 30,865 | 59,208 | ||||||||||||||||||||||||||||||||||||||||||||
Other (5) | 148 | 367 | 515 | 126 | 765 | 891 | 137 | 770 | 907 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 36,510 | $ | 28,501 | $ | 65,011 | $ | 32,277 | $ | 31,891 | $ | 64,168 | $ | 28,480 | $ | 31,635 | $ | 60,115 | ||||||||||||||||||||||||||||||||||||
U.S. plus international may not equal total due to rounding.
(1) Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 4).
(2) Alliance revenue for Reblozyl represents royalties (see Note 4).
(3) Alliance revenue for Adempas/Verquvo represents Merck’s share of profits from sales in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs (see Note 4).
(4) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. Also reflects total alliance revenue for Koselugo of $436 million, $170 million, and $97 million in 2025, 2024 and 2023, respectively (see Note 4).
(5) Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which (decreased) increased sales by $(127) million, $195 million and $244 million in 2025, 2024 and 2023, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for 2025, 2024 and 2023 also includes $138 million, $106 million and $118 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Consolidated sales by geographic area where derived are as follows:
| Years Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 36,510 | $ | 32,277 | $ | 28,480 | |||||||||||
| Europe, Middle East and Africa | 14,580 | 14,041 | 13,254 | ||||||||||||||
| Latin America | 3,410 | 3,459 | 3,086 | ||||||||||||||
Asia Pacific (other than Japan and China) | 2,983 | 3,058 | 3,225 | ||||||||||||||
| Japan | 2,711 | 3,280 | 3,164 | ||||||||||||||
| China | 1,939 | 5,494 | 6,802 | ||||||||||||||
| Other | 2,878 | 2,559 | 2,104 | ||||||||||||||
| $ | 65,011 | $ | 64,168 | $ | 60,115 | ||||||||||||
A reconciliation of segment profits to Income Before Taxes is as follows:
| Years Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pharma-ceutical | Animal Health | Total | Pharma-ceutical | Animal Health | Total | Pharma-ceutical | Animal Health | Total | |||||||||||||||||||||||||||||||||||||||||||||
Segment sales | $ | 58,142 | $ | 6,354 | $ | 64,496 | $ | 57,400 | $ | 5,877 | $ | 63,277 | $ | 53,583 | $ | 5,625 | $ | 59,208 | |||||||||||||||||||||||||||||||||||
Less segment costs: (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 6,679 | 2,649 | 6,828 | 2,469 | 8,849 | 2,498 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 5,874 | 1,125 | 6,128 | 1,084 | 5,903 | 1,038 | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development (2) | — | 448 | — | 385 | — | 353 | |||||||||||||||||||||||||||||||||||||||||||||||
Other segment items (3) | (165) | 1 | (89) | 1 | (49) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total segment profits | 45,754 | 2,131 | 47,885 | 44,533 | 1,938 | 46,471 | 38,880 | 1,737 | 40,617 | ||||||||||||||||||||||||||||||||||||||||||||
| Other profits | 251 | 492 | 474 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unallocated: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 343 | 415 | 365 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (1,357) | (1,271) | (1,146) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization | (2,793) | (2,395) | (2,044) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation | (2,758) | (1,843) | (1,625) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Research and development | (14,987) | (17,350) | (30,008) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring costs | (889) | (309) | (599) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge for Zetia antitrust litigation settlements | — | — | (573) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other unallocated, net | (4,628) | (4,274) | (3,572) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | 21,067 | $ | 19,936 | $ | 1,889 | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) The significant expense categories and amounts align with the segment level information that is regularly provided to the chief operating decision maker.
(2) Human health-related research and development expenses incurred by Merck Research Laboratories are not allocated to segment profits as noted below.
(3) Includes equity (income) loss from affiliates and other miscellaneous non-operating expenses.
Pharmaceutical segment profits consist of segment sales less standard costs, as well as selling, general and administrative expenses directly incurred by the segment. Animal Health segment profits consist of segment sales, less all cost of sales, as well as selling, general and administrative expenses and research and development costs directly incurred by the segment. The chief operating decision maker (Merck’s Chief Executive Officer) uses segment profit for the purpose of evaluating performance, allocating resources, informing incentive compensation targets and setting strategic Company goals during the planning and forecasting process. On a quarterly basis, the CEO considers forecast-to-actual variances in segment profit when assessing performance of the segments and making decisions about allocating resources to the segments. For internal management reporting presented to the chief operating decision maker, Merck does not allocate the remaining cost of sales not included in segment profits as described above, research and development expenses incurred by Merck Research Laboratories, the Company’s research and development division that focuses on human health-related activities, or general and administrative expenses not directly incurred by the segments, nor the cost of financing these activities. Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits. In addition, costs related to restructuring activities, as well as the amortization of intangible assets and the recognition of fair value step-up of inventories are not allocated to segments.
Other profits are primarily comprised of miscellaneous corporate profits, as well as operating profits (losses) related to third-party manufacturing arrangements.
Other unallocated, net, includes expenses from corporate and manufacturing cost centers, intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration, and other miscellaneous income or expense items.
Equity income from affiliates and depreciation included in segment profits is as follows:
| Pharmaceutical | Animal Health | Total | |||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||
| Equity income from affiliates | $ | 190 | $ | — | $ | 190 | |||||||||||
| Depreciation | 5 | 282 | 287 | ||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Equity income from affiliates | $ | 144 | $ | — | $ | 144 | |||||||||||
| Depreciation | 5 | 256 | 261 | ||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
Equity income from affiliates | $ | 111 | $ | — | $ | 111 | |||||||||||
| Depreciation | 5 | 198 | 203 | ||||||||||||||
Property, plant and equipment, net, by geographic area where located is as follows:
| December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 15,021 | $ | 14,724 | $ | 13,915 | |||||||||||
| Europe, Middle East and Africa | 8,856 | 7,548 | 7,562 | ||||||||||||||
| Asia Pacific (other than China and Japan) | 898 | 982 | 1,022 | ||||||||||||||
| China | 218 | 202 | 193 | ||||||||||||||
| Japan | 144 | 143 | 133 | ||||||||||||||
| Latin America | 128 | 133 | 222 | ||||||||||||||
| Other | 51 | 47 | 4 | ||||||||||||||
| $ | 25,316 | $ | 23,779 | $ | 23,051 | ||||||||||||
The Company does not disaggregate assets on a products and services basis for internal management reporting and, therefore, such information is not presented.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.