Q4 Earnings Roundup: Merck (NYSE:MRK) And The Rest Of The Branded Pharmaceuticals Segment

Let’s dig into the relative performance of Merck (NYSE:MRK) and its peers as we unravel the now-completed Q4 branded pharmaceuticals earnings season.

Looking ahead, the branded pharmaceutical industry is positioned for tailwinds from advancements in precision medicine, increasing adoption of AI to enhance drug development efficiency, and growing global demand for treatments addressing chronic and rare diseases. However, headwinds include heightened regulatory scrutiny, pricing pressures from governments and insurers, and the looming patent cliffs for key blockbuster drugs. Patent cliffs bring about competition from generics, forcing branded pharmaceutical companies back to the drawing board to find the next big thing.

The 10 branded pharmaceuticals stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 1.7%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Merck (NYSE:MRK)

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE:MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Merck reported revenues of $16.4 billion, up 5% year on year. This print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS and revenue estimates.

“In 2025, we continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients around the world,” said Robert M. Davis, chairman and chief executive officer.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $114.50.

Is now the time to buy Merck? Access our full analysis of the earnings results here, it’s free.

Best Q4: Eli Lilly (NYSE:LLY)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Eli Lilly reported revenues of $19.29 billion, up 42.6% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Eli Lilly pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $918.13.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Corcept (NASDAQ:CORT)

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Corcept reported revenues of $202.1 million, up 11.1% year on year, falling short of analysts’ expectations by 18.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Interestingly, the stock is up 23.9% since the results and currently trades at $45.21.

Read our full analysis of Corcept’s results here.

Collegium Pharmaceutical (NASDAQ:COLL)

Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.

Collegium Pharmaceutical reported revenues of $205.4 million, up 12.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded full-year revenue guidance beating analysts’ expectations but a significant miss of analysts’ EPS estimates.

Collegium Pharmaceutical had the weakest full-year guidance update among its peers. The stock is down 29.1% since reporting and currently trades at $32.42.

Read our full, actionable report on Collegium Pharmaceutical here, it’s free.

Royalty Pharma (NASDAQ:RPRX)

Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ:RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.

Royalty Pharma reported revenues of $622 million, up 4.8% year on year. This print came in 25.8% below analysts’ expectations. It was a slower quarter as it also logged a significant miss of analysts’ revenue estimates.

Royalty Pharma had the weakest performance against analyst estimates among its peers. The stock is up 12.3% since reporting and currently trades at $49.64.

Read our full, actionable report on Royalty Pharma here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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