Merck and Pfizer decline vs the broader market as results released

U.S. stocks pointed to a affirmative unfastened connected Tuesday, with S&P 500 and Nasdaq futures nudging into the green. But shares of Merck & Co. and Pfizer bucked the trend, with Merck falling 1% and Pfizer falling astir 5%.

The culprit? Solid but unspectacular results arsenic tech and golden rally. Still, together, their net springiness america a beauteous bully work connected the pharmaceutical assemblage and the broader economy.

For Merck, fourth-quarter worldwide income roseate 5% to $16.4 billion, oregon 4% excluding currency effects, portion full-year gross topped $65 billion. Oncology remained the backbone of the business, with Keytruda income climbing 7% to astir $32 cardinal for the twelvemonth — astir fractional Merck’s full yearly gross —pointing to its presumption arsenic 1 of the world’s astir important crab drugs adjacent arsenic Merck prepares for eventual nonaccomplishment of exclusivity aboriginal this decade.

What could regenerate specified a immense chunk of wide sales? Merck highlighted increasing contributions from newer therapies. Winrevair, a hypertension drug, generated $1.4 cardinal successful income successful its archetypal year, portion pneumococcal vaccine Capvaxix brought successful conscionable nether $800 million. Animal Health was different agleam spot, with income up 8% to $6.4 billion.

Looking to this year, Merck is guiding for 2026 gross of astir $66 cardinal —or astir level vs. this year.

Pfizer, for its part, saw full-year 2025 gross gaffe 2% to astir $63 billion. But beneath the header decline, oncology was a standout arsenic it was for Merck, with maturation successful drugs similar Padcev and Lorbrena helping offset drops elsewhere. Adjusted EPS roseate 4% to $3.22 for the twelvemonth arsenic margins expanded and costs stayed the same.

For 2026, Pfizer reiterated guidance, predicting gross of $59.5 cardinal to $62.5 cardinal and adjusted EPS of $2.80 to $3.00, adjacent arsenic patent expirations and pricing unit stay ongoing challenges. Management is betting that a engaged pipeline — astir 20 pivotal survey starts planned for this twelvemonth — tin yet reconstruct growth. For now, concern ticks implicit arsenic usual, nary substance the chaotic quality cycle. Big pharma has a mode of managing changeless transitions without grabbing headlines, and that tin lone look similar a virtuousness close now.