Quarterly guidance

Quarterly guidance
No quarterly guidance was given.

Annual guidance

Revenue
$66.8 billion to $67.3 billion
EPS
$2.77 to $2.82
Operating expenses
$42.4 billion to $42.9 billion
Tax rate
32% to 33%

Outlook

KEYTRUDA growth
Growth is expected to moderate as the company approaches peak penetration in certain indications.
2027 Revenue
Expects moderate top-line growth, offset by over $2 billion in headwinds from generic competition and loss of exclusivity.
Operating Expenses
Underlying expenses are expected to increase at a mid- to high single-digit rate to support pipeline and launches.
Vaccines
Watching broader market trends due to increased hesitancy and reduced utilization.
Capital Allocation
Priorities remain unchanged, with a commitment to dividends and approximately $3 billion in share repurchases for 2026.
Business Development
Remains a priority, with financial flexibility to pursue value-enhancing transactions.