How does Merck & Co. (MRK) make money?

Merck & Co. (MRK) primarily makes money through Pharmaceutical segment, which accounts for 89.4% of total revenue. For TTM through Q4 2025, Merck & Co. generated $65.01B in total revenue with a net profit margin of 28.1%.

What is Merck & Co. (MRK) gross profit margin?

Merck & Co. (MRK) reported a gross profit margin of 81.5% for TTM through Q4 2025, equivalent to $52.98B in gross profit. This means Merck & Co. retains 81.5% of each revenue unit after direct costs of production.

What is Merck & Co. (MRK) operating profit margin?

Merck & Co. (MRK) reported an operating profit margin of 41.2% for TTM through Q4 2025, equivalent to $26.78B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Merck & Co. (MRK) net profit margin?

Merck & Co. (MRK) reported a net profit margin of 28.1% for TTM through Q4 2025, equivalent to $18.25B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Merck & Co. (MRK) invest in R&D?

Merck & Co. (MRK) invested $15.60B in research and development in TTM through Q4 2025 (24.0% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Merck & Co. (MRK) spend on capital expenditures?

Merck & Co. (MRK) spent $4.11B on capital expenditures in TTM through Q4 2025 (6.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Merck & Co. (MRK) free cash flow?

Merck & Co. (MRK) generated $12.36B in free cash flow for TTM through Q4 2025 (19.0% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Merck & Co. (MRK) effective tax rate?

Merck & Co. (MRK) had an effective tax rate of 13.3% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Merck & Co. (MRK) Makes Money: A Visual Guide

Merck & Co. (MRK) generated $65.01B in revenue, earning $18.25B in net profit (28.1% margin). Its largest revenue source is Pharmaceutical segment (89.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Merck & Co. (MRK) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 24, 2026).

Frequently asked questions

How does Merck & Co. (MRK) make money?: Merck & Co. (MRK) primarily makes money through Pharmaceutical segment, which accounts for 89.4% of total revenue. For TTM through Q4 2025, Merck & Co. generated $65.01B in total revenue with a net profit margin of 28.1%.
What is Merck & Co. (MRK) gross profit margin?: Merck & Co. (MRK) reported a gross profit margin of 81.5% for TTM through Q4 2025, equivalent to $52.98B in gross profit. This means Merck & Co. retains 81.5% of each revenue unit after direct costs of production.
What is Merck & Co. (MRK) operating profit margin?: Merck & Co. (MRK) reported an operating profit margin of 41.2% for TTM through Q4 2025, equivalent to $26.78B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Merck & Co. (MRK) net profit margin?: Merck & Co. (MRK) reported a net profit margin of 28.1% for TTM through Q4 2025, equivalent to $18.25B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Merck & Co. (MRK) invest in R&D?: Merck & Co. (MRK) invested $15.60B in research and development in TTM through Q4 2025 (24.0% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Merck & Co. (MRK) spend on capital expenditures?: Merck & Co. (MRK) spent $4.11B on capital expenditures in TTM through Q4 2025 (6.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Merck & Co. (MRK) free cash flow?: Merck & Co. (MRK) generated $12.36B in free cash flow for TTM through Q4 2025 (19.0% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Merck & Co. (MRK) effective tax rate?: Merck & Co. (MRK) had an effective tax rate of 13.3% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.