Merck & Co., Inc. stock research
FY2026 Q1
Merck & (MRK) Gross Margin & Quarterly History
Explore Merck & Co., Inc. (MRK) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was slightly lower than the prior quarter, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Compared with the same quarter a year earlier, revenue was higher but gross profit was unchanged, cost of revenue increased, and gross margin weakened.
- The improvement in gross margin from the prior quarter was driven by a lower cost of revenue relative to revenue, as gross profit rose while revenue edged down. The year-over-year decline in gross margin reflects a higher cost of revenue that fully offset the revenue increase.
- Compared with the prior quarter, gross margin improved as cost of revenue decreased more sharply than revenue. Versus the same quarter last year, gross margin weakened as cost of revenue increased while gross profit remained stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.2%
Gross profit
$12.1B
Revenue
$16.3B
Cost of revenue
$4.2B
Quarter-over-quarter change
+8.1 pts
Year-over-year change
-3.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $15.8B | $12.2B | $3.6B | 77.5% |
| Sep 30, 2025 | $17.3B | $13.4B | $3.9B | 77.7% |
| Dec 31, 2025 | $16.4B | $10.8B | $5.6B | 66.2% |
| Mar 31, 2026 | $16.3B | $12.1B | $4.2B | 74.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+8.1 pts
Year-over-year change
Mar 31, 2025
-3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a lower cost of revenue relative to revenue, as gross profit rose while revenue edged down. The year-over-year decline in gross margin reflects a higher cost of revenue that fully offset the revenue increase.
Compared with the prior quarter, gross margin improved as cost of revenue decreased more sharply than revenue. Versus the same quarter last year, gross margin weakened as cost of revenue increased while gross profit remained stable.
Monitor the trajectory of cost of revenue relative to revenue, as its increase year over year was the primary factor behind the gross margin decline.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Merck & Co., Inc. (MRK) | 74.2% |