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

Merck & Co. (MRK) generates revenue primarily from Pharmaceutical segment, which accounted for 89.5% of total revenue in TTM through Q1 2026. The company reported $65.59B in revenue and converted 13.6% of it into net profit, equivalent to roughly $8.94B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

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

Merck & Co. (MRK) reported a gross profit margin of 75.9% in TTM through Q1 2026, equivalent to $49.79B in gross profit on $65.59B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

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

Merck & Co. (MRK) reported an operating profit margin of 27.6% in TTM through Q1 2026, equivalent to $18.10B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

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

Merck & Co. (MRK) reported a net profit margin of 13.6% in TTM through Q1 2026, equivalent to $8.94B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Merck & Co. (MRK) profitable?

Yes. Merck & Co. (MRK) reported $8.94B in net income for TTM through Q1 2026, with a net profit margin of 13.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Merck & Co. (MRK) invest in research and development?

Merck & Co. (MRK) invested $22.15B in research and development during TTM through Q1 2026, roughly 33.8% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

Merck & Co. (MRK) spent $3.77B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 5.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Merck & Co. (MRK) generate?

Merck & Co. (MRK) generated $14.12B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 21.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

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

Merck & Co. (MRK) had an effective tax rate of 23.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Merck & Co. (MRK)?

Merck & Co. (MRK) reports revenue across 3 reportable product segments, led by Pharmaceutical segment at 89.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Merck & Co. (MRK) generate most of its revenue?

UNITED STATES is the largest geographic market for Merck & Co. (MRK), accounting for 56.5% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Merck & Co. Makes Money: 2026 Visual Revenue Map

Merck & Co. (MRK) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 4, 2026).

Merck & Co. (MRK) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Merck & Co. (MRK) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Pharmaceutical segment	$58.70B	89.5%
Animal Health segment	$6.54B	10%
Other Segments	$357.05M	0.5%
Total	$65.59B	100%

Pharmaceutical segment$58.70B
Animal Health segment$6.54B
Other Segments$357.05M
Total$65.59B

Merck & Co. (MRK) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Merck & Co. (MRK), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$37.15B	56.5%
EMEA	$15.01B	22.8%
Latin America	$3.49B	5.3%
Asia Pacific	$3.03B	4.6%
International	$2.86B	4.3%
JAPAN	$2.60B	3.9%
CHINA	$1.63B	2.5%
Total	$65.77B	100%

UNITED STATES
EMEA
Latin America
Asia Pacific
International
JAPAN
CHINA
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Merck & Co. (MRK) reports revenue across 3 operating segments; the largest segment was Pharmaceutical segment at 89.5%, followed by Animal Health segment (10%) and Other Segments (0.5%). Separately, by end-market geography, UNITED STATES accounted for 56.5% of revenue, followed by EMEA (22.8%) and Latin America (5.3%).

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