Valued at a market cap of $204.3 billion, Merck & Co., Inc. (MRK) is a global healthcare company with a diverse portfolio spanning pharmaceuticals and animal health. Best known for its blockbuster cancer drug Keytruda, Merck has driven consistent growth through innovative therapies, strategic acquisitions, and global partnerships. The company is slated to announce its fiscal Q2 2025 earnings results before the market opens on Tuesday, Jul. 29.

Ahead of the event, analysts expect the Rahway, New Jersey-based company to report an adjusted EPS of $2.04, down 10.5% from $2.28 in the year-ago quarter. However, the company has surpassed Wall Street’s bottom-line estimates in the past four quarterly reports.

For fiscal 2025, analysts expect the pharmaceutical company to report adjusted EPS of $8.91, up 16.5% from $7.65 in fiscal 2024.

Shares of MRK have decreased 34.1% over the past 52 weeks, underperforming both the S&P 500 Index’s ($SPX) 12.3% rise and the Health Care Select Sector SPDR Fund’s (XLV) 6.9% decline over the same period.

Shares of Merck rose 1.4% on Apr. 24 after the company reported stronger-than-expected Q1 2025 adjusted EPS of $2.22. Despite a 2% drop in revenue to $15.5 billion, driven by a 41% decline in Gardasil sales to $1.3 billion due to paused shipments to China, sales still exceeded the forecast. Also, sales of Winrevair reached $280 million, and animal health revenue grew 5% to $1.6 billion.

Additionally, Merck reaffirmed its 2025 revenue guidance of $64.1 billion – $65.6 billion, while slightly lowering its adjusted EPS outlook to $8.82 – $8.97, reflecting $200 million in tariff-related costs and a licensing charge tied to Hengrui Pharma.

Analysts’ consensus rating on Merck stock is cautiously optimistic, with a “Moderate Buy” rating overall. Among 24 analysts covering the stock, 12 recommend a “Strong Buy,” one has a “Moderate Buy” rating, and 11 give a “Hold” rating. This configuration is less bullish than three months ago, with 14 analysts suggesting a “Strong Buy.”