MRK · 10-Q · 2026Q2 · Full report
Operating Expense Trends
Merck & Co., Inc. · 2026-08-07 · Importance 47 · Surprise 22 · No source text
SG&A expense increased 10% year over year in the second quarter of 2026 to $2.9 billion and 8% in the first six months to $5.6 billion. Higher administrative costs, including IT investments, increased promotional and selling costs supporting product launches, and unfavorable foreign exchange drove the SG&A increase. Total costs, expenses, and other items rose to $17.3 billion in the quarter and $37.1 billion year to date, compared with $10.8 billion and $20.4 billion in the prior-year periods. The expense increase amplified operating-cost pressure alongside acquisition-related R&D charges and higher cost of sales.
Key facts
- Total costs, expenses and other were $17,290 million in Q2 2026 and $37,110 million in the first six months of 2026 versus $10,807 million and $20,433 million in the comparable 2025 periods. source
- Selling, general and administrative expenses were $2,904 million in Q2 2026 and $5,604 million in the first six months of 2026, increasing 10% and 8% in those periods, respectively. source
- SG&A increases were primarily due to higher administrative costs (including investments in IT), higher promotional and selling costs in support of product launches, and the unfavorable impact of foreign exchange. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -100.4% | Total costs, expenses and other were $17,290 million in Q2 2026 and $37,110 million in the first six months of 2026 versus $10,807 million… |
| operating_income | negative | realized | -39.0% | Total costs, expenses and other were $17,290 million in Q2 2026 and $37,110 million in the first six months of 2026 versus $10,807 million… |
| operating_income | negative | realized | -2.4% | Selling, general and administrative expenses were $2,904 million in Q2 2026 and $5,604 million in the first six months of 2026, increasing… |
| operating_income | negative | realized | -1.5% | Selling, general and administrative expenses were $2,904 million in Q2 2026 and $5,604 million in the first six months of 2026, increasing… |