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MERCK & CO., INC., RAHWAY, N.J., USA

CONSOLIDATED STATEMENT OF OPERATIONS - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

	2026			2025															% Change
		1Q			1Q			2Q			3Q			4Q			Full Year			1Q
Sales	$	16,286		$	15,529		$	15,806		$	17,276		$	16,400		$	65,011			5	%

Costs, Expenses and Other
Cost of sales		4,195			3,419			3,557			3,855			5,551			16,382			23	%
Selling, general and administrative		2,700			2,552			2,649			2,633			2,898			10,733			6	%
Research and development		12,592			3,621			4,048			4,234			3,886			15,789			*
Restructuring costs		195			69			560			47			213			889			*
Other (income) expense, net		138			(35	)		(7	)		(238	)		432			151			*
(Loss) Income Before Taxes		(3,534	)		5,903			4,999			6,745			3,420			21,067			*
Income Tax Provision		709			818			571			958			458			2,804
Net (Loss) Income		(4,243	)		5,085			4,428			5,787			2,962			18,263			*
Less: Net (Loss) Income Attributable to Noncontrolling Interests		(3	)		6			1			2			(1	)		9
Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA	$	(4,240	)	$	5,079		$	4,427		$	5,785		$	2,963		$	18,254			*

(Loss) Earnings per Common Share Assuming Dilution ⁽¹⁾	$	(1.72	)	$	2.01		$	1.76		$	2.32		$	1.19		$	7.28			*

Average Shares Outstanding Assuming Dilution ⁽¹⁾		2,472			2,531			2,513			2,498			2,488			2,507
Tax Rate		-20.1	%		13.9	%		11.4	%		14.2	%		13.4	%		13.3	%

* 100% or greater

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾Because the Company recorded a net loss in the first quarter of 2026, no potential dilutive common shares were used in the computation of loss per common share assuming dilution as the effect would have been anti-dilutive.

MERCK & CO., INC., RAHWAY, N.J., USA

FIRST QUARTER 2025 GAAP TO NON-GAAP RECONCILIATION

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2b

	GAAP			Acquisition-and Divestiture-Related Costs ⁽¹⁾			Restructuring Costs ⁽²⁾			(Income) Loss from Investments in Equity Securities			Adjustment Subtotal			Non-GAAP
First Quarter
Cost of sales	$	3,419			620			36						656		$	2,763
Selling, general and administrative		2,552			23									23			2,529
Research and development		3,621			7									7			3,614
Restructuring costs		69						69						69			–
Other (income) expense, net		(35	)		(3	)					(107	)		(110	)		75
Income Before Taxes		5,903			(647	)		(105	)		107			(645	)		6,548
Income Tax Provision (Benefit)		818			(117	)⁽³⁾		(18	)⁽³⁾		22	⁽³⁾		(113	)		931
Net Income		5,085			(530	)		(87	)		85			(532	)		5,617
Net Income Attributable to Merck & Co., Inc., Rahway, N.J., USA		5,079			(530	)		(87	)		85			(532	)		5,611
Earnings per Common Share Assuming Dilution	$	2.01			(0.21	)		(0.03	)		0.03			(0.21	)	$	2.22

Tax Rate		13.9	%														14.2	%

Only the line items that are affected by non-GAAP adjustments are shown.

The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

⁽¹⁾Amounts included in cost of sales primarily reflect expenses for the amortization of intangible assets. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. Amounts included in research and development expenses reflect the amortization of intangible assets.

⁽²⁾Amounts primarily include employee separation costs, accelerated depreciation and asset impairments associated with facilities to be closed or divested related to activities under the Company's formal restructuring programs.

⁽³⁾ Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

MERCK & CO., INC., RAHWAY, N.J., USA
FRANCHISE / KEY PRODUCT SALES
FIRST QUARTER 2026
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3a

		Global					U.S.					International
		1Q 2026		1Q 2025	% Change		1Q 2026		1Q 2025	% Change		1Q 2026		1Q 2025	% Change
TOTAL SALES ⁽¹⁾	$	16,286	$	15,529	5	$	9,164	$	8,522	8	$	7,122	$	7,007	2
PHARMACEUTICAL		14,349		13,638	5		8,512		7,927	7		5,837		5,711	2
Oncology
Keytruda		7,906		7,205	10		4,599		4,308	7		3,307		2,897	14
Keytruda Qlex		128			-		106			-		21			-
Alliance Revenue – Lynparza ⁽²⁾		341		312	9		149		145	3		192		168	15
Alliance Revenue – Lenvima ⁽²⁾		256		258	-1		176		186	-5		80		72	11
Welireg		199		137	45		152		123	24		47		15	*
Alliance Revenue – Reblozyl ⁽³⁾		148		119	25		128		101	27		20		18	11
Vaccines ⁽⁴⁾
Gardasil/Gardasil 9		1,069		1,327	-19		485		536	-10		585		790	-26
ProQuad/M-M-R II/Varivax		538		539	0		409		423	-3		129		116	11
RotaTeq		206		228	-10		165		164	0		42		64	-35
Vaxneuvance		202		230	-12		123		139	-11		78		92	-15
Capvaxive		142		107	33		118		106	11		23		1	*
Enflonsia		1			-		-1			-		3			-
Cardiometabolic & Respiratory
Winrevair		525		280	88		477		268	78		48		12	*
Ohtuvayre		131			-		131			-
Alliance Revenue - Adempas/Verquvo ⁽⁵⁾		109		106	3		109		97	12				9	-100
Adempas ⁽⁶⁾		78		68	15							78		68	15
Infectious Diseases
Bridion		472		441	7		427		378	13		45		63	-29
Prevymis		272		208	31		135		102	32		138		106	30
Zerbaxa		82		70	17		52		42	22		30		28	9
Delstrigo		75		67	12		10		15	-34		65		52	26
Isentress/Isentress HD		59		90	-34		35		51	-31		24		39	-38
Dificid		34		83	-59		24		72	-67		10		11	-10
Lagevrio		28		102	-73		16		35	-54		12		67	-83
Diabetes
Januvia		367		549	-33		252		344	-27		116		204	-43
Janumet		207		247	-16		68		65	5		139		182	-23
Other Pharmaceutical ⁽⁷⁾		774		865	-11		167		227	-26		605		637	-5
ANIMAL HEALTH		1,791		1,588	13		519		502	3		1,272		1,086	17
Livestock		1,064		924	15		211		194	9		853		730	17
Companion Animal		727		664	9		308		308	0		419		356	18
Other Revenues ⁽⁸⁾		146		303	-52		133		93	43		13		210	-94

*200% or greater

Sum of U.S. plus international may not equal global due to rounding.

⁽¹⁾ Only select products are shown.

⁽²⁾ Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs.

⁽³⁾ Alliance Revenue represents royalties.

⁽⁴⁾ Total Vaccines sales were $2,314 million and $2,607 million on a global basis in the first quarter of 2026 and 2025, respectively.

⁽⁵⁾ Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs.

⁽⁶⁾ Net product sales in the Company's marketing territories.

⁽⁷⁾ Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $161 million and $44 million on a global basis in the first quarter of 2026 and 2025, respectively.

⁽⁸⁾ Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $132 million and $95 million in the first quarter of 2026 and 2025, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

PHARMACEUTICAL GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 3b

	2026			2025															% Change
		1Q			1Q			2Q			3Q			4Q			Full Year			1Q
TOTAL PHARMACEUTICAL	$	14,349		$	13,638		$	14,050		$	15,611		$	14,843		$	58,142			5

United States		8,512			7,927			8,328			9,493			8,662			34,409			7
% Pharmaceutical Sales		59.3	%		58.1	%		59.3	%		60.8	%		58.4	%		59.2	%
Europe ⁽¹⁾		2,725			2,384			2,551			2,675			2,839			10,449			14
% Pharmaceutical Sales		19.0	%		17.5	%		18.2	%		17.1	%		19.1	%		18.0	%
Latin America		624			589			654			691			644			2,578			6
% Pharmaceutical Sales		4.3	%		4.3	%		4.7	%		4.4	%		4.3	%		4.4	%
Asia Pacific (other than China and Japan)		569			535			609			593			586			2,323			6
% Pharmaceutical Sales		4.0	%		3.9	%		4.3	%		3.8	%		4.0	%		4.0	%
Japan		535			651			604			693			684			2,632			-18
% Pharmaceutical Sales		3.7	%		4.8	%		4.3	%		4.4	%		4.6	%		4.5	%
Eastern Europe/Middle East/Africa		413			435			451			365			348			1,598			-5
% Pharmaceutical Sales		2.9	%		3.2	%		3.2	%		2.3	%		2.3	%		2.7	%
China ⁽²⁾		353			668			407			377			364			1,816			-47
% Pharmaceutical Sales		2.5	%		4.9	%		2.9	%		2.4	%		2.5	%		3.1	%
Canada		137			125			135			134			153			547			9
% Pharmaceutical Sales		1.0	%		0.9	%		1.0	%		0.9	%		1.0	%		0.9	%
Other		481			324			311			590			563			1,790			48
% Pharmaceutical Sales		3.3	%		2.4	%		2.1	%		3.9	%		3.8	%		3.2	%

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

⁽¹⁾ Europe represents all European Union countries, the European Union accession markets and the United Kingdom.

⁽²⁾ Gardasil/Gardasil 9 sales in China were $0 million and $193 million in the first quarter of 2026 and 2025, respectively.

MERCK & CO., INC., RAHWAY, N.J., USA

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

OTHER (INCOME) EXPENSE, NET

		1Q26			1Q25
Interest income	$	(35	)	$	(109	)
Interest expense		479			313
Exchange losses		38			90
Income from investments in equity securities, net ⁽¹⁾		(168	)		(90	)
Net periodic defined benefit plan (credit) cost other than service cost		(134	)		(148	)
Other, net		(42	)		(91	)
Total	$	138		$	(35	)

⁽¹⁾ Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds. Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag.