Merck Animal Health Posts 8% Revenue Growth in Q2 as Division Reinforces Role in Diversified Portfolio

Merck’s Animal Health division delivered $1.78 billion in second-quarter revenue, up 8% year-on-year, continuing its consistent growth trajectory and reinforcing its strategic value as a diversified earnings contributor as the parent company navigates significant charges from the Terns Pharmaceuticals acquisition and a transforming oncology portfolio.

Merck’s Animal Health division generated $1.78 billion in Q2 2026 revenue, an 8% increase year-on-year, maintaining the strong momentum that saw the division post $1.79 billion and 13% growth in Q1 2026. The consistent performance underscores Animal Health’s role as a reliable, lower-volatility contributor within Merck’s broader portfolio.

The Q2 result builds on a strong first half. Animal Health has now delivered $3.57 billion in revenue through the first six months of 2026, tracking comfortably toward an annualised run rate that would surpass the division’s $6.4 billion full-year 2025 result.

No breakdown between livestock and companion animal segments was provided in the Q2 summary, though Q1 data showed livestock growing faster than companion animal — a trend consistent with broader sector dynamics seen across Zoetis and Elanco.

Merck’s overall Q2 sales rose 5% to $16.6 billion, with KEYTRUDA and KEYTRUDA QLEX generating $8.37 billion. Animal Health represented approximately 10.7% of total group revenue, a contribution that takes on added significance as Merck absorbs a $2.31 per share charge from the Terns Pharmaceuticals acquisition and manages the long-term transition away from KEYTRUDA dependency.