MRK · 8-K · 20261029PR119825
Income Tax Rate Changes
Merck & Co., Inc. · 2026-10-29 · Importance 77 · Surprise 92 · In source text
The third-quarter 2026 GAAP effective income tax rate was 8.9%, down from 14.2% in the third quarter of 2025, reflecting favorable discrete items and the jurisdictional mix of income and expense. The non-GAAP effective tax rate was 10.9% for the quarter, also reflecting those favorable factors. Merck lowered its full-year 2026 non-GAAP tax-rate outlook to 32.0%–33.0% from 35.0%–36.0%, including the effects of non-tax-deductible Cidara and Terns acquisition charges.
Key facts
- Merck's updated full-year 2026 non-GAAP effective tax rate outlook is 32.0% to 33.0%, compared with its prior outlook of 35.0% to 36.0%. source
- Merck expects its full-year 2026 non-GAAP effective income tax rate to be 32.0% to 33.0%, including the impact of non-tax-deductible one-time Cidara and Terns acquisition charges. source
- Merck's effective income tax rate for the third quarter of 2026 was 8.9%, reflecting favorable discrete items and jurisdictional mix of income and expense. source
- Merck's non-GAAP effective income tax rate for the third quarter of 2026 was 10.9%, reflecting favorable discrete items and jurisdictional mix of income and expense. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | — | Merck's updated full-year 2026 non-GAAP effective tax rate outlook is 32.0% to 33.0%, compared with its prior outlook of 35.0% to 36.0%. |