MRK · 10-Q · 2026Q3 · Full report
Liquidity and Debt Position
Merck & Co., Inc. · 2026-11-04 · Importance 60 · Surprise 74 · From source text
Cash and investments were $11.253 billion at September 30, 2026, down from $15.521 billion at December 31, 2025; working capital declined to $10.140 billion from $15.189 billion. Operating cash flow was $15.8 billion for the first nine months of 2026, compared with $13.6 billion in 2025, while investing cash use increased to $17.1 billion from $2.5 billion, primarily because of the Cidara, Terns, and TARGAN acquisitions. Merck issued $6.0 billion of senior unsecured notes in May 2026 and used the proceeds to repay the $6.0 billion term loan drawn to fund part of the Terns acquisition; the term loan has since been repaid. The company also repaid matured $135 million debentures, $1.0 billion notes, and €1.0 billion notes during 2026, and had an undrawn $6.0 billion revolving credit facility maturing in May 2031.
Key facts
- Cash used in investing activities was $17.1 billion in the first nine months of 2026 versus $2.5 billion in the same 2025 period, primarily due to the Cidara, Terns, and TARGAN acquisitions. source
- Merck has a $6.0 billion credit facility maturing in May 2031 for backup liquidity and general corporate purposes; it has not drawn on the facility. source
- In April 2026 Merck drew the full $6.0 billion under its 364-day term loan facility, which provided financing up to $6.0 billion, to fund part of the approximately $6.8 billion cash consideration for Terns; Merck has since repaid the borrowings. source
- In May 2026 Merck issued $6.0 billion of senior unsecured notes, with maturities from 2028 through 2056 and stated coupon rates from 4.30% to 5.85% for fixed-rate notes; proceeds repaid Credit Agreement borrowings. source
- Cash provided by operating activities was $15.8 billion in the first nine months of 2026 versus $13.6 billion in the same 2025 period. source
- Cash and investments were $11.253 billion at September 30, 2026, compared with $15.521 billion at December 31, 2025; working capital was $10.140 billion versus $15.189 billion. source
- Merck's $135 million 6.30% debentures matured and were repaid in January 2026; its $1.0 billion 0.75% notes matured and were repaid in February 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -11.0% | Cash used in investing activities was $17.1 billion in the first nine months of 2026 versus $2.5 billion in the same 2025 period,… |
| cash | negative | realized | -5.1% | In April 2026 Merck drew the full $6.0 billion under its 364-day term loan facility, which provided financing up to $6.0 billion, to fund… |
| cash | positive | realized | +4.5% | In April 2026 Merck drew the full $6.0 billion under its 364-day term loan facility, which provided financing up to $6.0 billion, to fund… |
| liability | negative | realized | -4.5% | In April 2026 Merck drew the full $6.0 billion under its 364-day term loan facility, which provided financing up to $6.0 billion, to fund… |
| cash | negative | realized | -4.5% | In May 2026 Merck issued $6.0 billion of senior unsecured notes, with maturities from 2028 through 2056 and stated coupon rates from 4.30%… |
| cash | negative | realized | -3.2% | Cash and investments were $11.253 billion at September 30, 2026, compared with $15.521 billion at December 31, 2025; working capital was… |
| cash | positive | realized | +1.7% | Cash provided by operating activities was $15.8 billion in the first nine months of 2026 versus $13.6 billion in the same 2025 period. |
| liability | positive | realized | 0.0% | In May 2026 Merck issued $6.0 billion of senior unsecured notes, with maturities from 2028 through 2056 and stated coupon rates from 4.30%… |