MRK Merck & Co. FILING REVIEW ONLY
FORM 10-K · FY2025 ENDED 2025-12-31 · FILED 2026-02-24 · 2,507M DILUTED WTD-AVG SHARES
?
Diluted weighted-average shares: the average share count across the fiscal year, including shares that in-the-money options and awards would add — the denominator of diluted EPS.
· EDGAR ↗

The company is a global health care enterprise that develops, manufactures and sells prescription medicines, biologic therapies and vaccines for human use, as well as veterinary pharmaceuticals, vaccines and animal health management products. Its operations are organized into a Pharmaceutical segment, covering human prescription drugs and vaccines, and an Animal Health segment, covering livestock and companion animal products. Pharmaceutical customers include drug wholesalers, retailers, hospitals, government agencies, managed care organizations, physicians and distributors, while Animal Health customers include veterinarians, distributors, animal producers, farmers and pet owners.

S&P 500 · HEALTH CARE · CIK 310158
REVENUE$65.0B+1.3% YoY
NET INCOME$18.3B+6.6% YoY
OPERATING CASH FLOW$16.5B-23.3% YoY
FREE CASH FLOW
?
Free cash flow = operating cash flow − capital expenditure, both as filed.
$12.4B-31.7% YoY
59
FILING SCORE / 100
?
How the score is computed: 5 management claims are checked against the filed statements and 7 earnings-quality warning signs are computed from them. Each check earns 2 points when the numbers fully back it, 1 when partly, 0 when they contradict or flag red — 6/10 on claims and 8/14 on warning signs, averaged to 0–100. 70+ reads strong; 45–69 mixed; below 45 weak. Every check's arithmetic is on this page.
MIXED12 CHECKS · 1 red · 4 watchNEXT 10-Q ~AUG 2026 (EST.)
?
Estimated from the filer's own quarter cadence: last filed quarter end + one quarter; filing typically ~40 days later. An estimate, not an announcement.
Statements & commentary
?
Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.
EVERY FIGURE AS FILED · $M EXCEPT PER-SHARE
Income statement · $ millions202520242023
Total revenues65,01164,16860,1154
Cost of revenue16,38215,19316,126
Research and development15,78917,93830,531
Selling, general and administrative10,73310,81610,504
Interest expense——1,146
Other income (expense), net(151)24(466)
Income before income taxes21,06719,9361,889
Income tax provision2,8042,8031,5121
— of which current4,4754,0523,4111
Net income incl. noncontrolling interests18,26317,133377
Less: noncontrolling interests91612
Net income attributable to common18,25417,1173652
Diluted earnings per share$7.28$6.74$0.141
Weighted-average diluted shares2,5072,5412,547
Cash flow · $ millions202520242023
Net income incl. noncontrolling interests18,26317,133377
Share-based compensation820761645
Deferred income taxes(1,671)(1,249)(1,899)
Change in receivables1,0902441,148
Change in inventories1,180835816
Net cash provided by operating activities16,47221,46813,0063
Capital expenditure4,1123,3723,8631
Acquisitions, net of cash10,04200
Net cash used in investing activities(13,741)(7,734)(14,083)
Dividends paid8,1767,8407,4452
Repurchases of common stock5,0841,3061,3462
Debt issued——5,939
Debt repaid2,5031,2901,755
Net cash used in financing activities(1,922)(7,032)(4,810)
Cash and equivalents at end of period14,69013,3186,909
Balance sheet · $ millions20252024
Cash and cash equivalents14,56513,242
Short-term investments0447
Receivables, net11,77510,2781
Inventories6,6586,1091
Total current assets43,51638,782
Property, plant and equipment, net25,31623,779
Goodwill21,57921,6681
Intangible assets, net26,68116,370
Total assets136,866117,1061
Accounts payable4,4044,079
Current debt2,5892,649
Total current liabilities28,32728,420
Long-term debt46,75034,462
Stockholders' equity52,60646,313
Noncontrolling interests5659
Total equity52,66246,372
Segments · as filed in the segment note · $ millionsPharmaceuticalsegmentAnimal healthsegmentCorporate / unallocatedConsolidated
Net sales58,1426,35451565,011

Rows render only when the filed members reconcile to the consolidated line; Corporate / unallocated is consolidated − Σ segments, arithmetic on filed lines. A concept whose members do not faithfully partition the total is omitted, never approximated.

Largest FY/FY moves · $ millions, ranked by |Δ|FY2025FY2024Δ $Δ %Reading
Total assets · BS136,866117,106+19,760+16.9%—
Long-term debt · BS46,75034,462+12,288+35.7%—
Intangible assets, net · BS26,68116,370+10,311+63.0%◐ outsized
Stockholders' equity · BS52,60646,313+6,293+13.6%—
Total equity · BS52,66246,372+6,290+13.6%—
Net cash used in investing activities · CF(13,741)(7,734)−6,007-77.7%◐ outsized
Net cash used in financing activities · CF(1,922)(7,032)+5,110+72.7%◐ outsized
Net cash provided by operating activities · CF16,47221,468−4,996-23.3%—
Total current assets · BS43,51638,782+4,734+12.2%—
Repurchases of common stock · CF5,0841,306+3,778+289.3%◐ outsized
Research and development · IS15,78917,938−2,149-12.0%—
Property, plant and equipment, net · BS25,31623,779+1,537+6.5%—
Receivables, net · BS11,77510,278+1,497+14.6%—
Cash and equivalents at end of period · CF14,69013,318+1,372+10.3%—
Business quality — Buffett/Munger screen · deterministic · not part of the filing scoreValueReading
Return on equity
net income ÷ average of start- and end-of-year equity
36.9%
sector median 13.1%
strong
Share count, year-end
(year-end shares − prior year-end) ÷ prior year-end
+0.0%
sector median -0.3%
flat
Debt to equity
(current debt + long-term debt) ÷ year-end equity
0.94
sector median 0.65
moderate
FCF consistency, 4yr
operating cash flow − capital expenditure, per year
positive 4 of 4consistent
Margin stability
pre-tax income ÷ revenue, swing across up to five years
pre-tax margin 32.4%
sector median 14.5%
volatile
Quarterly · as filed in 10-Q/10-K · $ millionsSEP 24MAR 25JUN 25SEP 25MAR 26
Total revenues16,65715,52915,80617,27616,286
Cost of revenue4,0803,4193,5573,8554,195
Research and development5,8623,6214,0484,23412,592
Selling, general and administrative2,7312,5522,6492,6332,700
Interest expense330313305327479
Other income (expense), net162357238(138)
Income before income taxes4,0905,9034,9996,745(3,534)
Income tax provision929818571958709
Net income incl. noncontrolling interests3,1615,0854,4285,787(4,243)
Less: noncontrolling interests4612(3)
Net income attributable to common3,1575,0794,4275,785(4,240)
Diluted earnings per share$1.24$2.01$1.76$2.32$-1.72
Weighted-average diluted shares2,5412,5312,5132,4982,472
Net cash provided by operating activities—2,500——3,918
Largest QoQ moves · latest vs prior filed quarterPriorLatestΔ $Δ %
Income before income taxes6,745(3,534)−10,279-152.4%
Net income incl. noncontrolling interests5,787(4,243)−10,030-173.3%
Net income attributable to common5,785(4,240)−10,025-173.3%
Research and development4,23412,592+8,358+197.4%
Net cash provided by operating activities2,5003,918+1,418+56.7%
Total revenues17,27616,286−990-5.7%
Other income (expense), net238(138)−376-158.0%
Cost of revenue3,8554,195+340+8.8%
Ownership — insiders & floatForm 4 + 10-K cover · open-market trades onlyValueReading
Public float$198,051M10-K cover · as of 2025-06-30
Insider Form 4s, 90d40 filings · 30 non-market txnsquiet — awards/exercises only
Insider ownership %—needs the proxy statement — not read yet, never estimated
· BlackRock, Inc.8.17%5%+ holder · DEF 14A filed 2026-04-08
Institutional %1 holder of 5%+ namedfull 13F total pending — never estimated
Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY
Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Total debt →Return on equity →Days sales outstanding →
Terms and acronyms used on this page
Income statement & cash flow
ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.
OCFOperating cash flow — net cash provided by operating activities, as reported.
FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.
Balance sheet & market
Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.
Filing & document terms
10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.
YoY · CAGRYear over year · compound annual growth rate.
Keep readingWHERE AN ANALYST GOES NEXT
Peers in Health Care →Strongest reviewed · HD 100 →Weakest reviewed · APA 29 →

Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Merck & Co.'s Form 10-K for FY2025 (accession 0000310158-26-000063), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. MRK is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.