Sacituzumab govitecan-hziy

Product Sales Excluding Veklury Increased 4% Year-Over-Year to $28.0 billion for Full Year 2025 Biktarvy Sales Increased 7% Year-Over-Year to $14.3 billion for Full Year 2025 FOSTER CITY, Calif.--(BUSINESS WIRE)-- Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the fourth quarter and full year 2025. “Our fourth quarter and full-year results close out a very strong year for Gilead overall, including the successful U.S. launch of Yeztugo, the world’s first twice-yearly HIV prevention therapy, and continued growth for Biktarvy and Descovy,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer. “In 2026, our potential new launches include two cancer therapies and an additional HIV treatment option, and we look forward to building on the launches of Yeztugo and Livdelzi for liver disease. As we continue to increase our positive impact on healthcare, Gilead is well positioned for continued growth in 2026 and beyond.” Fourth Quarter 2025 Financial Results Total fourth quarter 2025 revenues increased 5% to $7.9 billion compared to the same period in 2024, primarily driven by higher sales of HIV and Liver Disease products, partially offset by lower sales of Veklury® (remdesivir). Diluted earnings per share (“EPS”) was $1.74 in the fourth quarter 2025 compared to $1.42 in the same period in 2024. The increase was primarily driven by higher income tax benefits, net unrealized gains from equity securities and higher product sales, as well as lower selling, general and administrative (“SG&A”) expenses. The increase was partially offset by higher acquired in-process research and development (“IPR&D”) expenses and an IPR&D impairment charge related to assets acquired as part of the MYR GmbH (“MYR”) acquisition. Non-GAAP diluted EPS of $1.86 in the fourth quarter 2025 compared to $1.90 in the same period in 2024. The decrease was primarily driven by higher acquired IPR&D expenses, partially offset by higher product sales and lower SG&A expenses. As of December 31, 2025, Gilead had $10.6 billion of cash, cash equivalents and marketable debt securities compared to $10.0 billion as of December 31, 2024. During the fourth quarter 2025, Gilead generated $3.3 billion in operating cash flow. During the fourth quarter 2025, Gilead paid dividends of $1.0 billion and repurchased $230 million of common stock. Fourth Quarter 2025 Product Sales Total fourth quarter 2025 product sales increased 5% to $7.9 billion compared to the same period in 2024. Total fourth quarter 2025 product sales excluding Veklury increased 7% to $7.7 billion compared to the same period in 2024, primarily due to higher sales of HIV and Liver Disease products. HIV product sales increased 6% to $5.8 billion in the fourth quarter 2025 compared to the same period in 2024, primarily driven by higher demand for HIV prevention and treatment. Biktarvy®(bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 5% to $4.0 billion in the fourth quarter 2025 compared to the same period in 2024, primarily driven by higher demand and favorable inventory dynamics, partially offset by lower average realized price. Descovy®(FTC 200mg/TAF 25mg) sales increased 33% to $819 million in the fourth quarter 2025 compared to the same period in 2024, primarily driven by higher average realized price and higher demand for HIV prevention. The Liver Disease portfolio sales increased 17% to $844 million in the fourth quarter 2025 compared to the same period in 2024, primarily driven by higher demand for Livdelzi® (seladelpar). Veklury sales decreased 37% to $212 millionin the fourth quarter 2025 compared to the same period in 2024, primarily driven by lower rates of COVID-19-related hospitalizations. Cell Therapy product sales decreased 6% to $458 million in the fourth quarter 2025 compared to the same period in 2024, reflecting ongoing competitive headwinds. Yescarta® (axicabtagene ciloleucel) sales decreased 6% to $368 million in the fourth quarter 2025 compared to the same period in 2024, primarily driven by in- and out-of-class competition. Tecartus® (brexucabtagene autoleucel) sales decreased 9% to $90 million in the fourth quarter 2025 compared to the same period in 2024, primarily driven by in-class competition. Trodelvy® (sacituzumab govitecan-hziy) sales increased 8% to $384 million in the fourth quarter 2025 compared to the same period in 2024, primarily driven by higher demand in breast cancer treatment. Fourth Quarter 2025 Product Gross Margin, Operating Expenses and Effective Tax Rate Product gross margin remained relatively flat at 79.5% in the fourth quarter 2025 compared to 79.0% in the same period in 2024. Non-GAAP product gross margin was 86.8% in the fourth quarter 2025 compared to 86.7% in the same period in 2024. Research and development (“R&D”) expenses and non-GAAP R&D expenses were $1.6 billion in the fourth quarter 2025 and remained relatively flat compared to the same period in 2024. Acquired IPR&D expenses were $539 million in the fourth quarter 2025, primarily related to our acquisition of Interius BioTherapeutics, Inc. (“Interius”) and ongoing collaboration with Shenzhen Pregene Biopharma Co., Ltd. (“Pregene”). SG&A expenses were $1.8 billion in the fourth quarter 2025 compared to $1.9 billion in the same period in 2024, decreasing primarily due to lower expenses related to legal matters and corporate initiatives, partially offset by donations of equity securities made to the Gilead Foundation. Non-GAAP SG&A expenses were $1.7 billion in the fourth quarter 2025 compared to $1.9 billion in the same period in 2024, primarily due to lower expenses related to legal matters and corporate initiatives. The effective tax rate (“ETR”) was (5.0)% in the fourth quarter 2025 compared to 17.8% in the same period in 2024, primarily driven by a tax benefit from a settlement with a tax authority related to a prior year legal entity restructuring and a tax benefit from the IPR&D impairment charge related to assets acquired as part of the MYR acquisition. The non-GAAP ETR was 20.5% in the fourth quarter 2025 compared to 19.2% in the same period in 2024. Full Year 2025 Financial Results Total full year 2025 revenues increased 2% to $29.4 billion compared to 2024, broken down as follows: Total full year 2025 product sales increased 1% to $28.9 billion compared to 2024, primarily driven by higher sales of HIV and Liver Disease products, partially offset by lower sales of Veklury. Total full year 2025 royalty, contract and other revenues increased by approximately $383 million compared to 2024, primarily driven by revenue related to a previous sale of intellectual property not expected to reoccur. Diluted EPS was $6.78 in the full year 2025 compared to $0.38 in 2024. The increase was primarily driven by lower acquired IPR&D expenses, lower IPR&D impairments, higher net unrealized gains on equity investments, higher revenues and lower SG&A expenses, partially offset by higher tax expense. Non-GAAP diluted EPS was $8.15 in the full year 2025 compared to $4.62 in 2024. The increase was primarily driven by lower acquired IPR&D expenses, higher revenues, and lower SG&A expenses. Total full year 2025 product sales increased 1% to $28.9 billion compared to 2024, primarily driven by higher sales of HIV and Liver Disease products, partially offset by lower sales of Veklury. Total full year 2025 royalty, contract and other revenues increased by approximately $383 million compared to 2024, primarily driven by revenue related to a previous sale of intellectual property not expected to reoccur. Full Year 2025 Product Sales Total full year 2025 product sales increased 1% to $28.9 billion compared to 2024. Total full year 2025 product sales excluding Veklury increased 4% to $28.0 billion compared to 2024, primarily due to higher sales of HIV and Liver Disease products. HIV product sales increased 6% to $20.8 billion in the full year 2025 compared to 2024, primarily driven by higher demand for HIV treatment and prevention. Biktarvy sales increased 7% to $14.3 billion in the full year 2025 compared to 2024, primarily driven by higher demand, partially offset by lower average realized price. Descovy sales increased 31% to $2.8 billion in the full year 2025 compared to 2024, primarily driven by higher demand and average realized price. The Liver Disease portfolio sales increased 6% to $3.2 billion in the full year 2025 compared to 2024, primarily driven by higher demand for Livdelzi and products for chronic hepatitis B virus (“HBV”) and chronic hepatitis delta virus (“HDV”), partially offset by lower average realized price in products for chronic hepatitis C virus (“HCV”). Veklury sales decreased 49% to $911 millionin the full year 2025 compared to 2024, primarily driven by lower COVID-19-related hospitalizations. Cell Therapy product sales decreased 7% to $1.8 billion in the full year 2025 compared to 2024, reflecting ongoing competitive headwinds. Yescarta sales decreased 5% to $1.5 billion in the full year 2025 compared to 2024, primarily driven by in- and out-of-class competition. Tecartus sales decreased 15% to $344 million in the full year 2025 compared to 2024, primarily driven by in-class competition. Trodelvy sales increased 6% to $1.4 billion in the full year 2025 compared to 2024, primarily driven by higher demand in breast cancer treatment, partially offset by the indication withdrawal in bladder cancer treatment. Full Year 2025 Product Gross Margin, Operating Expenses and Effective Tax Rate Product gross margin remained relatively flat at 78.4% in the full year 2025 compared to 78.2% in 2024. Non-GAAP product gross margin was 86.4% in the full year 2025 compared to 86.2% in 2024. R&D expenses were $5.8 billion in the full year 2025 compared to $5.9 billion in 2024, decreasing primarily due to lower acquisition-related integration expenses and restructuring costs, as well as lower study-related and clinical manufacturing expenses. Non-GAAP R&D expenses were $5.7 billion in the full year 2025, decreasing slightly compared to 2024 due to lower study-related and clinical manufacturing expenses. Acquired IPR&D expenses were $1.0 billion in the full year 2025, primarily related to the acquisition of Interius and collaborations with LEO Pharma A/S and Pregene. SG&A expenses were $5.8 billion in the full year 2025 compared to $6.1 billion in 2024, decreasing primarily due to lower corporate, legal, acquisition-related integration and restructuring expenses, partially offset by higher HIV promotional expenses and donations of equity securities made to the Gilead Foundation. Non-GAAP SG&A expenses were $5.6 billion in the full year 2025 compared to $5.9 billion in 2024, decreasing primarily due to lower expenses related to corporate initiatives and legal matters, partially offset by higher HIV promotional expenses. The ETR was 13.1% in the full year 2025 compared to 30.5% in 2024, primarily driven by the impact of the prior year non-deductible acquired IPR&D charge for the acquisition of CymaBay Therapeutics, Inc. (“CymaBay”), partially offset by the tax impact of the prior year higher IPR&D impairment charges. The non-GAAP ETR was 18.3% in the full year 2025 compared to 25.9% in 2024, primarily driven by the prior year non-deductible acquired IPR&D charge for the acquisition of CymaBay. Guidance and Outlook For the full year 2026, Gilead expects: (in millions, except per share amounts) February 10, 2026 Guidance Low End High End Product sales $ 29,600 $ 30,000 Product sales excluding Veklury $ 29,000 $ 29,400 Veklury $ 600 $ 600 Diluted EPS $ 6.75 $ 7.15 Non-GAAP diluted EPS $ 8.45 $ 8.85 Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2026 guidance is provided in the accompanying tables. The financial guidance is subject to a number of risks and uncertainties. See the Forward-Looking Statements section below. Key Updates Since Our Last Quarterly Release Virology Announced positive topline Phase 3 results from the ARTISTRY-1 and ARTISTRY-2 trials, evaluating our investigational daily oral single-tablet regimen of bictegravir 75mg and lenacapavir 50mg (“BIC/LEN”) for virologically suppressed adults with HIV. BIC/LEN met its primary endpoints demonstrating non-inferiority to baseline multi-tablet antiviral regimens (ARTISTRY-1) and Biktarvy (ARTISTRY-2). Exercised option to license investigational herpes simplex virus helicase-primase inhibitor programs ABI-1179 and ABI-5366 from Assembly Biosciences, Inc. (“Assembly”). Announced the first delivery of lenacapavir for PrEP in sub-Saharan African countries Eswatini and Zambia through the U.S. President’s Emergency Plan for AIDS Relief. Oncology Announced that the Phase 3 ASCENT-07 study evaluating the investigational use of Trodelvy versus chemotherapy in first-line post-endocrine HR+/HER2- metastatic breast cancer did not meet its primary endpoint of progression-free survival as assessed by Blinded Independent Central Review. Overall survival, a secondary endpoint, was not mature at the time of the primary analysis, however, a favorable early trend compared to chemotherapy was observed in the Trodelvy arm. In addition, no new safety signals were identified in this patient population. The results from this study were presented at the 2025 San Antonio Breast Cancer Symposium. Announced the discontinuation of the Phase 3 STAR-221 study, in partnership with Arcus Biosciences, Inc. (“Arcus”), evaluating the anti-TIGIT antibody domvanalimab (“dom”) plus zimberelimab (“zim”) and chemotherapy in first-line HER2- advanced gastric and esophageal cancers. The decision was based on the recommendation of the Independent Data Monitoring Committee, following review of data from a pre-specified interim analysis. Additionally, Gilead and Arcus will discontinue the Phase 2 EDGE-Gastric study evaluating dom and zim regimens in upper gastrointestinal cancers. Dom and zim are investigational products and are not approved anywhere globally. Cell Therapy Announced a new label update for Yescarta that removes a limitation around Primary Central Nervous System Lymphoma, an ultra-rare cancer affecting a highly vulnerable patient population. Yescarta is the only CAR-T therapy in relapsed or refractory large B-cell lymphoma (“R/R LBCL”) to have this limitation removed. Presented new positive data, with our partner Arcellx, Inc. (“Arcellx”), from the pivotal Phase 2 iMMagine-1 trial evaluating the investigational CAR T-cell therapy anitocabtagene autoleucel in 4L+ R/R multiple myeloma at the 2025 American Society of Hematology (“ASH”). Presented initial Phase 1 data for KITE-753 and KITE-363, evaluating two investigational bicistronic CAR T-cell therapies in patients with R/R LBCL at ASH 2025. Presented a new analysis of Yescarta from the Phase 3 ZUMA-7 and Phase 2 ALYCANTE study in patients with R/R LBCL at ASH 2025. The data demonstrated consistent benefits of Yescarta among patients with R/R LBCL, including those ineligible for previous standard of care chemotherapy and stem cell transplant. Inflammation Presented new long-term data from the Phase 3 ASSURE study for Livdelzi, which reinforce the safety and efficacy of Livdelzi for people living with primary biliary cholangitis over 3 years, including data on switching from obeticholic acid. The data were presented at the American Association for the Study of Liver Diseases meeting. Corporate The Board declared a quarterly dividend of $0.82 per share of common stock for the first quarter of 2026. The dividend is payable on March 30, 2026, to stockholders of record at the close of business on March 13, 2026. Future dividends will be subject to Board approval. Appointed Keeley Cain Wettan as Executive Vice President, General Counsel, Legal and Compliance. Announced an agreement with the U.S. government to lower the cost of medicines for Americans, reinforcing a commitment to U.S.-based innovation, affordability and global health leadership. Certain amounts and percentages in this press release may not sum or recalculate due to rounding. Conference Call At 1:30 p.m. Pacific Time today, Gilead will host a conference call to discuss Gilead’s results. A live webcast will be available on http://investors.gilead.com and will be archived on www.gilead.com for one year. Non-GAAP Financial Information The information presented in this document has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), unless otherwise noted as non-GAAP. Management believes non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial information, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP financial information generally excludes acquisition-related expenses including amortization of acquired intangible assets and other items that are considered unusual or not representative of underlying trends of Gilead’s business, fair value adjustments of equity securities and discrete and related tax charges or benefits associated with such exclusions as well as changes in tax-related laws and guidelines, transfers of intangible assets between certain legal entities, and legal entity restructurings. Although Gilead consistently excludes the amortization of acquired intangible assets from the non-GAAP financial information, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisitions and contribute to ongoing revenue generation.Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables. About Gilead Sciences Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer and inflammation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California. Forward-Looking Statements Statements included in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilead’s ability to achieve its full year 2026 financial guidance, including as a result of the uncertainty of the amount and timing of Veklury revenues, the impact from Medicare Part D pricing reform in the Inflation Reduction Act, the expiration of subsidies related to the Affordable Care Act, our most-favored-nation pricing agreement with the U.S. government, changes in U.S. regulatory or legislative policies, and changes in U.S. trade policies, including tariffs; Gilead’s ability to make progress on any of its long-term ambitions or priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology, inflammation and other programs; Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Arcellx, Arcus, Assembly and the U.S. government; the risk that Gilead’s U.S. manufacturing and R&D investment may not achieve their intended benefits; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving anitocabtagene autoleucel, axicabtagene ciloleucel, bictegravir, domvanalimab, lenacapavir, sacituzumab govitecan-hziy, seladelpar, zimberelimab, ABI-1179, ABI-5366, KITE-753 and KITE-363 (such as ALYCANTE, ARTISTRY-1, ARTISTRY-2, ASCENT-07, ASSURE, EDGE-Gastric, iMMagine-1, STAR-221 and ZUMA-7), and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to resolve the issues cited by the FDA in pending clinical holds to the satisfaction of the FDA and the risk that FDA may not remove such clinical holds, in whole or in part, in a timely manner or at all; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive or maintain regulatory approvals in a timely manner or at all, and the risk that any such approvals, if granted, may be subject to significant limitations on use and may be subject to withdrawal or other adverse actions by the applicable regulatory authority; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead products; the risk that physicians and patients may not see advantages of Gilead’s products over other therapies and may therefore be reluctant to prescribe the products; Gilead’s ability to effectively manage the access strategy relating to lenacapavir for HIV PrEP, subject to necessary regulatory approvals; and other risks identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There may be other factors of which Gilead is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ significantly from these estimates. Further, results for the quarter and full year ended December 31, 2025 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q and other subsequent disclosure documents filed with the SEC. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements. Additional information is available on our Investor Relations website, https://investors.gilead.com. Among other things, an estimate of Acquired IPR&D expenses is expected to be made available on the Quarterly Results page within the first ten (10) days after the end of each quarter. Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD®, GILEAD SCIENCES®, KITE®, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, HEPSERA®, JYSELECA®, LIVDELZI®/LYVDELZI®, LETAIRIS®, ODEFSEY®, SOVALDI®, STRIBILD®, SUNLENCA® , TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA®, YEZTUGO®/YEYTUO® and ZYDELIG®. Other trademarks and trade names are the property of their respective owners. For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235). GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except per share amounts) 2025 2024 2025 2024 Revenues: Product sales $ 7,903 $ 7,536 $ 28,915 $ 28,610 Royalty, contract and other revenues 22 33 527 144 Total revenues 7,925 7,569 29,443 28,754 Costs and expenses: Cost of goods sold 1,623 1,581 6,234 6,251 Research and development expenses 1,584 1,641 5,799 5,907 Acquired in-process research and development expenses 539 (11 ) 1,024 4,663 In-process research and development impairments 400 — 590 4,180 Selling, general and administrative expenses 1,794 1,906 5,774 6,091 Total costs and expenses 5,940 5,118 19,421 27,092 Operating income 1,984 2,451 10,022 1,662 Interest expense 255 248 1,024 977 Other (income) expense, net (349 ) 35 (798 ) (6 ) Income before income taxes 2,078 2,168 9,796 690 Income tax (benefit) expense (105 ) 385 1,286 211 Net income 2,183 1,783 8,510 480 Net income attributable to noncontrolling interest — — — — Net income attributable to Gilead $ 2,183 $ 1,783 $ 8,510 $ 480 Basic earnings per share attributable to Gilead $ 1.76 $ 1.43 $ 6.84 $ 0.38 Diluted earnings per share attributable to Gilead $ 1.74 $ 1.42 $ 6.78 $ 0.38 Shares used in basic earnings per share attributable to Gilead calculation 1,242 1,248 1,244 1,247 Shares used in diluted earnings per share attributable to Gilead calculation 1,253 1,259 1,255 1,255 Supplemental Information: Cash dividends declared per share $ 0.79 $ 0.77 $ 3.16 $ 3.08 Product gross margin 79.5 % 79.0 % 78.4 % 78.2 % Research and development expenses as a % of revenues 20.0 % 21.7 % 19.7 % 20.5 % Selling, general and administrative expenses as a % of revenues 22.6 % 25.2 % 19.6 % 21.2 % Operating margin 25.0 % 32.4 % 34.0 % 5.8 % Effective tax rate (5.0 )% 17.8 % 13.1 % 30.5 % GILEAD SCIENCES, INC. TOTAL REVENUE SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2025 2024 Change 2025 2024 Change Product sales: HIV $ 5,801 $ 5,452 6 % $ 20,752 $ 19,612 6 % Liver Disease 844 719 17 % 3,217 3,021 6 % Oncology 842 843 — % 3,236 3,289 (2 )% Other 205 184 11 % 799 889 (10 )% Total product sales excluding Veklury 7,691 7,198 7 % 28,004 26,811 4 % Veklury 212 337 (37 )% 911 1,799 (49 )% Total product sales 7,903 7,536 5 % 28,915 28,610 1 % Royalty, contract and other revenues 22 33 (35 )% 527 144 NM Total revenues $ 7,925 $ 7,569 5 % $ 29,443 $ 28,754 2 % GILEAD SCIENCES, INC. NON-GAAP FINANCIAL INFORMATION(1) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2025 2024 Change 2025 2024 Change Non-GAAP: Cost of goods sold $ 1,044 $ 1,002 4 % $ 3,919 $ 3,936 — % Research and development expenses $ 1,565 $ 1,612 (3 )% $ 5,687 $ 5,732 (1 )% Acquired IPR&D expenses $ 539 $ (11 ) NM $ 1,024 $ 4,663 (78 )% Selling, general and administrative expenses $ 1,688 $ 1,852 (9 )% $ 5,619 $ 5,903 (5 )% Other (income) expense, net $ (97 ) $ (91 ) 7 % $ (348 ) $ (279 ) 24 % Diluted earnings per share attributable to Gilead $ 1.86 $ 1.90 (2 )% $ 8.15 $ 4.62 77 % Shares used in non-GAAP diluted earnings per share attributable to Gilead calculation 1,253 1,259 — % 1,255 1,255 — % Product gross margin 86.8 % 86.7 % 9 bps 86.4 % 86.2 % 20 bps Research and development expenses as a % of revenues 19.7 % 21.3 % -155 bps 19.3 % 19.9 % -62 bps Selling, general and administrative expenses as a % of revenues 21.3 % 24.5 % -317 bps 19.1 % 20.5 % -144 bps Operating margin 39.0 % 41.1 % -217 bps 44.8 % 29.6 % NM Effective tax rate 20.5 % 19.2 % 135 bps 18.3 % 25.9 % -765 bps NM - Not Meaningful (1) Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables below. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages and per share amounts) 2025 2024 2025 2024 Cost of goods sold reconciliation: GAAP cost of goods sold $ 1,623 $ 1,581 $ 6,234 $ 6,251 Acquisition-related – amortization(1) (576 ) (579 ) (2,310 ) (2,316 ) Restructuring (4 ) — (4 ) — Non-GAAP cost of goods sold $ 1,044 $ 1,002 $ 3,919 $ 3,936 Product gross margin reconciliation: GAAP product gross margin 79.5 % 79.0 % 78.4 % 78.2 % Acquisition-related – amortization(1) 7.3 % 7.7 % 8.0 % 8.1 % Restructuring — % — % — % — % Non-GAAP product gross margin 86.8 % 86.7 % 86.4 % 86.2 % Research and development expenses reconciliation: GAAP research and development expenses $ 1,584 $ 1,641 $ 5,799 $ 5,907 Acquisition-related – other costs(2) (3 ) — (43 ) (78 ) Restructuring (16 ) (30 ) (69 ) (98 ) Non-GAAP research and development expenses $ 1,565 $ 1,612 $ 5,687 $ 5,732 IPR&D impairment reconciliation: GAAP IPR&D impairment $ 400 $ — $ 590 $ 4,180 IPR&D impairment (400 ) — (590 ) (4,180 ) Non-GAAP IPR&D impairment $ — $ — $ — $ — Selling, general and administrative expenses reconciliation: GAAP selling, general and administrative expenses $ 1,794 $ 1,906 $ 5,774 $ 6,091 Acquisition-related – other costs(2) — (8 ) — (97 ) Restructuring (17 ) (46 ) (65 ) (91 ) Other(3) (89 ) — (89 ) — Non-GAAP selling, general and administrative expenses $ 1,688 $ 1,852 $ 5,619 $ 5,903 Operating income reconciliation: GAAP operating income $ 1,984 $ 2,451 $ 10,022 $ 1,662 Acquisition-related – amortization(1) 576 579 2,310 2,316 Acquisition-related – other costs(2) 3 8 43 174 Restructuring 37 76 138 188 IPR&D impairment 400 — 590 4,180 Other(3) 89 — 89 — Non-GAAP operating income $ 3,089 $ 3,114 $ 13,193 $ 8,520 Operating margin reconciliation: GAAP operating margin 25.0 % 32.4 % 34.0 % 5.8 % Acquisition-related – amortization(1) 7.3 % 7.6 % 7.8 % 8.1 % Acquisition-related – other costs(2) — % 0.1 % 0.1 % 0.6 % Restructuring 0.5 % 1.0 % 0.5 % 0.7 % IPR&D impairment 5.0 % — % 2.0 % 14.5 % Other(3) 1.1 % — % 0.3 % — % Non-GAAP operating margin 39.0 % 41.1 % 44.8 % 29.6 % Other (income) expense, net reconciliation: GAAP other (income) expense, net $ (349 ) $ 35 $ (798 ) $ (6 ) Gain (loss) from equity securities, net 252 (126 ) 451 (274 ) Non-GAAP other (income) expense, net $ (97 ) $ (91 ) $ (348 ) $ (279 ) GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages and per share amounts) 2025 2024 2025 2024 Income before income taxes reconciliation: GAAP income before income taxes $ 2,078 $ 2,168 $ 9,796 $ 690 Acquisition-related – amortization(1) 576 579 2,310 2,316 Acquisition-related – other costs(2) 3 8 43 174 Restructuring 37 76 138 188 IPR&D impairment 400 — 590 4,180 (Gain) loss from equity securities, net (252 ) 126 (451 ) 274 Other(3) 89 — 89 — Non-GAAP income before income taxes $ 2,930 $ 2,956 $ 12,517 $ 7,822 Income tax (benefit) expense reconciliation: GAAP income tax (benefit) expense $ (105 ) $ 385 $ 1,286 $ 211 Income tax effect of non-GAAP adjustments: Acquisition-related – amortization(1) 118 121 478 484 Acquisition-related – other costs(2) — 2 — 41 Restructuring 7 16 25 37 IPR&D impairment 87 — 137 1,051 Loss (gain) from equity securities, net 14 13 (20 ) (39 ) Discrete and related tax charges(4) 454 29 353 243 Other(3) 27 — 27 — Non-GAAP income tax expense $ 601 $ 566 $ 2,287 $ 2,028 Effective tax rate reconciliation: GAAP effective tax rate (5.0 )% 17.8 % 13.1 % 30.5 % Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(4) 25.6 % 1.4 % 5.1 % (4.6 )% Non-GAAP effective tax rate 20.5 % 19.2 % 18.3 % 25.9 % Net income attributable to Gilead reconciliation: GAAP net income attributable to Gilead $ 2,183 $ 1,783 $ 8,510 $ 480 Acquisition-related – amortization(1) 458 458 1,832 1,832 Acquisition-related – other costs(2) 3 6 43 134 Restructuring 30 59 113 151 IPR&D impairment 313 — 453 3,129 (Gain) loss from equity securities, net (266 ) 113 (431 ) 313 Discrete and related tax charges(4) (454 ) (29 ) (353 ) (243 ) Other(3) 63 — 63 — Non-GAAP net income attributable to Gilead $ 2,329 $ 2,390 $ 10,230 $ 5,795 Diluted earnings per share reconciliation: GAAP diluted earnings per share $ 1.74 $ 1.42 $ 6.78 $ 0.38 Acquisition-related – amortization(1) 0.37 0.36 1.46 1.46 Acquisition-related – other costs(2) — — 0.03 0.11 Restructuring 0.02 0.05 0.09 0.12 IPR&D impairment 0.25 — 0.36 2.49 (Gain) loss from equity securities, net (0.21 ) 0.09 (0.34 ) 0.25 Discrete and related tax charges(4) (0.36 ) (0.02 ) (0.28 ) (0.19 ) Other(3) 0.05 — 0.05 — Non-GAAP diluted earnings per share $ 1.86 $ 1.90 $ 8.15 $ 4.62 GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages and per share amounts) 2025 2024 2025 2024 Non-GAAP adjustment summary: Cost of goods sold adjustments $ 579 $ 579 $ 2,314 $ 2,315 Research and development expenses adjustments 19 29 112 176 IPR&D impairment adjustments 400 — 590 4,180 Selling, general and administrative expenses adjustments 106 54 155 188 Total non-GAAP adjustments to costs and expenses 1,104 663 3,171 6,858 Other (income) expense, net, adjustments (252 ) 126 (451 ) 274 Total non-GAAP adjustments before income taxes 852 789 2,720 7,132 Income tax effect of non-GAAP adjustments above (252 ) (152 ) (647 ) (1,574 ) Discrete and related tax charges(4) (454 ) (29 ) (353 ) (243 ) Total non-GAAP adjustments to net income attributable to Gilead $ 146 $ 607 $ 1,719 $ 5,315 (1) Relates to amortization of acquired intangibles. (2) Adjustments include integration expenses and contingent consideration fair value adjustments associated with Gilead’s recent acquisitions. (3) (4) Represents discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets, transfers of intangible assets from a foreign subsidiary to Ireland and the United States, and legal entity restructurings. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP 2026 FULL-YEAR GUIDANCE(1) (unaudited) (in millions, except percentages and per share amounts) Provided February 10, 2026 Projected product gross margin GAAP to non-GAAP reconciliation: GAAP projected product gross margin ~ 79.0% Acquisition-related expenses ~ 8.0% Non-GAAP projected product gross margin ~ 87.0% Projected operating income GAAP to non-GAAP reconciliation: GAAP projected operating income $11,400 - $11,900 Acquisition-related and restructuring expenses ~ 2,400 Non-GAAP projected operating income $13,800 - $14,300 Projected effective tax rate GAAP to non-GAAP reconciliation: GAAP projected effective tax rate ~ 21% Income tax effect of above non-GAAP adjustments, and discrete and related tax adjustments (~ 1%) Non-GAAP projected effective tax rate ~ 20% Projected diluted EPS GAAP to non-GAAP reconciliation: GAAP projected diluted EPS $6.75 - $7.15 Acquisition-related and restructuring expenses, and discrete and related tax adjustments ~ 1.70 Non-GAAP projected diluted EPS $8.45 - $8.85 (1) Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and in-process research and development, transfers of intangible assets from a foreign subsidiary to Ireland and the United States, and legal entity restructurings. GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) December 31, December 31, (in millions) 2025 2024 Assets Cash, cash equivalents and marketable debt securities $ 10,605 $ 9,991 Accounts receivable, net 4,913 4,420 Inventories(1) 4,368 3,589 Property, plant and equipment, net 5,606 5,414 Intangible assets, net 16,978 19,948 Goodwill 8,314 8,314 Other assets 8,239 7,319 Total assets $ 59,023 $ 58,995 Liabilities and Stockholders’ Equity Current liabilities $ 11,813 $ 12,004 Long-term liabilities 24,592 27,744 Stockholders’ equity(2) 22,618 19,246 Total liabilities and stockholders’ equity $ 59,023 $ 58,995 (1) Includes current and long-term inventories, which are disclosed separately in the notes to our financial statements in Form 10-K and Form 10-Q. As of December 31, 2025 and December 31, 2024, there were 1,241 and 1,246 shares of common stock issued and outstanding, respectively. GILEAD SCIENCES, INC. SELECTED CASH FLOW INFORMATION (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2025 2024 2025 2024 Net cash provided by operating activities $ 3,326 $ 2,975 $ 10,019 $ 10,828 Net cash used in investing activities (1,835 ) (225 ) (4,793 ) (3,449 ) Net cash (used in) provided by financing activities (1,263 ) 2,260 (7,745 ) (3,433 ) Effect of exchange rate changes on cash and cash equivalents 5 (55 ) 92 (40 ) Net change in cash and cash equivalents 233 4,954 (2,428 ) 3,906 Cash and cash equivalents at beginning of period 7,330 5,037 9,991 6,085 Cash and cash equivalents at end of period $ 7,564 $ 9,991 $ 7,564 $ 9,991 Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2025 2024 2025 2024 Net cash provided by operating activities $ 3,326 $ 2,975 $ 10,019 $ 10,828 Purchases of property, plant and equipment (205 ) (147 ) (563 ) (523 ) Free cash flow(1) $ 3,121 $ 2,828 $ 9,456 $ 10,305 (1) Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above. GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2025 2024 2025 2024 HIV Biktarvy – U.S. $ 3,255 $ 3,129 $ 11,467 $ 10,855 Biktarvy – Europe 446 400 1,676 1,509 Biktarvy – Rest of World 268 246 1,190 1,060 3,968 3,774 14,334 13,423 Descovy – U.S. 768 563 2,559 1,902 Descovy – Europe 26 25 93 100 Descovy – Rest of World 25 28 105 110 819 616 2,758 2,113 Genvoya – U.S. 331 410 1,281 1,498 Genvoya – Europe 34 42 148 180 Genvoya – Rest of World 15 18 69 84 380 470 1,498 1,762 Odefsey – U.S. 238 252 881 957 Odefsey – Europe 62 74 246 290 Odefsey – Rest of World 10 11 40 41 310 336 1,167 1,288 Symtuza - Revenue share(1) – U.S. 98 112 363 450 Symtuza - Revenue share(1) – Europe 32 30 120 130 Symtuza - Revenue share(1) – Rest of World 3 3 12 12 134 144 495 592 Other HIV(2) – U.S. 154 67 352 257 Other HIV(2) – Europe 24 33 109 129 Other HIV(2) – Rest of World 12 11 40 48 190 111 500 434 Total HIV – U.S. 4,845 4,532 16,904 15,918 Total HIV – Europe 624 603 2,392 2,339 Total HIV – Rest of World 332 317 1,456 1,355 5,801 5,452 20,752 19,612 Liver Disease Sofosbuvir / Velpatasvir(3) – U.S. 140 185 636 922 Sofosbuvir / Velpatasvir(3) – Europe 66 69 292 299 Sofosbuvir / Velpatasvir(3) – Rest of World 71 75 344 374 276 330 1,272 1,596 Vemlidy – U.S. 149 148 507 486 Vemlidy – Europe 12 11 49 44 Vemlidy – Rest of World 125 100 514 428 287 260 1,070 959 Other Liver Disease(4) – U.S. 168 58 476 192 Other Liver Disease(4) – Europe 96 54 330 202 Other Liver Disease(4) – Rest of World 16 18 69 73 281 130 874 467 Total Liver Disease – U.S. 457 391 1,619 1,601 Total Liver Disease – Europe 174 134 671 545 Total Liver Disease – Rest of World 212 194 927 876 844 719 3,217 3,021 Veklury Veklury – U.S. 80 108 470 892 Veklury – Europe 67 80 151 284 Veklury – Rest of World 65 150 290 623 212 337 911 1,799 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2025 2024 2025 2024 Oncology Cell Therapy Tecartus – U.S. 32 53 153 234 Tecartus – Europe 51 36 158 138 Tecartus – Rest of World 7 10 32 31 90 98 344 403 Yescarta – U.S. 151 161 595 662 Yescarta – Europe 143 156 598 666 Yescarta – Rest of World 74 72 303 242 368 390 1,495 1,570 Total Cell Therapy – U.S. 183 213 748 896 Total Cell Therapy – Europe 193 193 755 804 Total Cell Therapy – Rest of World 82 82 335 274 458 488 1,839 1,973 Trodelvy Trodelvy – U.S. 251 247 877 902 Trodelvy – Europe 88 77 347 294 Trodelvy – Rest of World 45 31 173 119 384 355 1,397 1,315 Total Oncology – U.S. 434 461 1,626 1,798 Total Oncology – Europe 281 269 1,102 1,098 Total Oncology – Rest of World 127 113 508 393 842 843 3,236 3,289 Other AmBisome – U.S. 5 7 20 44 AmBisome – Europe 66 66 267 276 AmBisome – Rest of World 47 36 221 212 118 109 509 533 Other(5) – U.S. 52 51 177 255 Other(5) – Europe 9 8 32 34 Other(5) – Rest of World 26 16 81 68 87 76 290 356 Total Other – U.S. 57 59 197 299 Total Other – Europe 75 74 300 310 Total Other – Rest of World 72 52 302 280 205 184 799 889 Total product sales – U.S. 5,873 5,550 20,816 20,508 Total product sales – Europe 1,221 1,160 4,617 4,576 Total product sales – Rest of World 808 826 3,483 3,526 $ 7,903 $ 7,536 $ 28,915 $ 28,610 (1) Represents Gilead’s revenue from cobicistat (“C”), FTC and TAF in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company. (2) Includes Atripla, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada, Tybost and Yeztugo/Yeytuo. (3) Includes Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC (“Asegua”). (4) Includes ledipasvir/sofosbuvir (Harvoni and the authorized generic version of Harvoni sold by Asegua), Hepcludex, Hepsera, Livdelzi/Lyvdelzi, Sovaldi, Viread and Vosevi. (5) Includes Cayston, Jyseleca, Letairis and Zydelig. Investors: Jacquie Ross, CFA investor_relations@gilead.com Media: Ashleigh Koss public_affairs@gilead.com

Fourth-Quarter Worldwide Sales Were $16.4 Billion (5% Growth; 4% Growth ex-FX) Fourth-Quarter GAAP EPS Was $1.19; Non-GAAP EPS Was $2.04; GAAP and Non-GAAP EPS Include a Charge of $0.05 per Share for the Acquisition of MK-8690 Sole Global Rights Full-Year Worldwide Sales Were $65.0 Billion (1% Growth; 2% Growth ex-FX) KEYTRUDA/KEYTRUDA QLEX Sales Were $31.7 Billion (7% Growth Both Nominally and ex-FX); Includes KEYTRUDA QLEX Sales of $40 Million WINREVAIR Sales Were $1.4 Billion CAPVAXIVE Sales Were $759 Million GARDASIL/GARDASIL 9 Sales Were $5.2 Billion (39% Decline Both Nominally and ex-FX) Animal Health Sales Were $6.4 Billion (8% Growth; 9% Growth ex-FX) KEYTRUDA/KEYTRUDA QLEX Sales Were $31.7 Billion (7% Growth Both Nominally and ex-FX); Includes KEYTRUDA QLEX Sales of $40 Million WINREVAIR Sales Were $1.4 Billion CAPVAXIVE Sales Were $759 Million GARDASIL/GARDASIL 9 Sales Were $5.2 Billion (39% Decline Both Nominally and ex-FX) Animal Health Sales Were $6.4 Billion (8% Growth; 9% Growth ex-FX) Full-Year 2025 GAAP EPS Was $7.28; Non-GAAP EPS Was $8.98; GAAP and Non-GAAP EPS Include Charges of $0.20 per Share Related to Certain Business Development Transactions Announced Positive Late-Stage Trial Results From 18 Phase 3 Trials in 2025 Augmented Pipeline and Portfolio Through Acquisitions of Verona Pharma and Cidara Therapeutics and License Agreement With Hengrui Pharma In the Fourth Quarter Received FDA Commissioner’s National Priority Vouchers for Enlicitide and Sacituzumab Tirumotecan (Sac-TMT), Providing an Opportunity To Expedite Potential FDA Review Timelines for These Phase 3 Candidates Presented Positive Results From Phase 3 CORALreef Lipids and HeFH Trials Demonstrating Enlicitide Significantly Reduced LDL-C in Adults Reached Agreement With U.S. Government To Expand Access to Medicines and Lower Costs for Americans Received FDA Commissioner’s National Priority Vouchers for Enlicitide and Sacituzumab Tirumotecan (Sac-TMT), Providing an Opportunity To Expedite Potential FDA Review Timelines for These Phase 3 Candidates Presented Positive Results From Phase 3 CORALreef Lipids and HeFH Trials Demonstrating Enlicitide Significantly Reduced LDL-C in Adults Reached Agreement With U.S. Government To Expand Access to Medicines and Lower Costs for Americans Full-Year 2026 Financial Outlook Anticipates Worldwide Sales To Be Between $65.5 Billion and $67.0 Billion Expects Non-GAAP EPS To Be Between $5.00 and $5.15; Outlook Reflects a One-Time Charge of Approximately $3.65 per Share for the Acquisition of Cidara Anticipates Worldwide Sales To Be Between $65.5 Billion and $67.0 Billion Expects Non-GAAP EPS To Be Between $5.00 and $5.15; Outlook Reflects a One-Time Charge of Approximately $3.65 per Share for the Acquisition of Cidara RAHWAY, N.J.--(BUSINESS WIRE)--Merck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the fourth quarter and full year of 2025. "In 2025, we continued to advance leading-edge science to deliver transformative medicines and vaccines that are improving health outcomes for patients around the world,” said Robert M. Davis, chairman and chief executive officer. "Our business benefited from demand for our innovative portfolio, including for KEYTRUDA, increasing contributions from new launches in cardiometabolic and respiratory as well as vaccines, and strong performance of Animal Health. The transformation of our portfolio, bolstered by the acquisitions of Verona Pharma and Cidara Therapeutics, is well underway, and momentum is building as we continue to execute on our strategy. Our progress positions us to continue delivering on our purpose for patients and creating durable value for shareholders.” Financial Summary $ in millions, except EPS amounts Fourth Quarter Year Ended 2025 2024 Change Change Ex-Exchange Dec. 31, 2025 Dec. 31, 2024 Change Change Ex-Exchange Sales $16,400 $15,624 5% 4% $65,011 $64,168 1% 2% GAAP net income1 2,963 3,743 -21% -20% 18,254 17,117 7% 9% Non-GAAP net income that excludes certain items1,2* 5,088 4,372 16% 17% 22,513 19,444 16% 18% GAAP EPS 1.19 1.48 -20% -18% 7.28 6.74 8% 10% Non-GAAP EPS that excludes certain items2* 2.04 1.72 19% 19% 8.98 7.65 17% 19% *Refer to table on page 9. Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) assuming dilution was $1.19 for the fourth quarter and $7.28 for the full year of 2025. Non-GAAP EPS was $2.04 for the fourth quarter and $8.98 for the full year of 2025. GAAP and non-GAAP EPS in the fourth quarter of 2025 include a charge of $0.05 per share related to an agreement with Dr. Falk Pharma GmbH (Falk) pursuant to which the Company secured the sole global rights to MK-8690. GAAP and non-GAAP EPS in the fourth quarter of 2024 include a charge of $0.23 per share related to the execution of licensing agreements with LaNova Medicines Ltd. (acquired by Sino Pharmaceutical Limited) and Hansoh Pharma. GAAP and non-GAAP EPS for the full years of 2025 and 2024 include charges of $0.20 and $1.28 per share, respectively, related to certain licensing agreements and asset acquisitions. Non-GAAP EPS excludes acquisition- and divestiture-related costs, costs related to restructuring programs, and income and losses from investments in equity securities. Non-GAAP EPS in 2025 also excludes a net tax benefit, which reflects a net benefit related to favorable audit reserve adjustments. Non-GAAP EPS in the fourth quarter and full year of 2024 also exclude a benefit due to a reduction in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to certain federal tax return years. Fourth-Quarter Sales Performance The following table reflects sales of the Company’s top products and significant performance drivers. Fourth Quarter $ in millions 2025 2024 Change Change Ex-Exchange Commentary Total Sales $16,400 $15,624 5% 4% Pharmaceutical 14,843 14,042 6% 4% Increase primarily driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in vaccines. KEYTRUDA/ KEYTRUDA QLEX 8,372 7,836 7% 5% Growth driven by strong global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), non-small cell lung cancer (NSCLC), renal cell carcinoma, cervical and head and neck cancers, as well as continued global demand in metastatic indications, including urothelial, gastric and endometrial cancers. Sales growth was partially offset by timing of purchases in the U.S. Sales of KEYTRUDA QLEX were $35 million. GARDASIL/ GARDASIL 9 1,031 1,550 -34% -35% Decline primarily due to lower demand in China, as well as lower sales in Japan following the national catch-up immunization program, partially offset by higher sales in the U.S. and timing in certain international markets. PROQUAD, M-M-R II and VARIVAX 619 594 4% 3% Increase primarily reflects higher sales of PROQUAD, which largely resulted from both the replenishment of doses borrowed from the U.S. Centers for Disease Control and Prevention Pediatric Vaccine Stockpile and from higher demand in Europe, partially offset by lower demand for M-M-R II in certain international markets and lower demand for VARIVAX in the U.S. JANUVIA/JANUMET 501 487 3% 3% Growth driven by higher net pricing in the U.S., partially offset by lower demand in China as well as in most other international markets due to generic competition. BRIDION 499 449 11% 11% Growth primarily due to higher demand and net pricing in the U.S., partially offset by lower demand in several international markets due to ongoing generic competition. WINREVAIR 467 200 133% 133% Growth primarily reflects continued uptake in the U.S. and early launch uptake in certain international markets, partially offset by lower net pricing in the U.S. largely due to Medicare Part D redesign. Lynparza* 389 365 7% 4% Growth primarily due to higher demand in several international markets. CAPVAXIVE 279 50 N/M N/M Growth largely due to continued uptake in the U.S. PREVYMIS 275 215 28% 26% Increase primarily due to higher demand in the U.S. as well as in most international markets, reflecting in part the launch of new indications. Lenvima* 272 255 7% 6% Increase due to higher sales in the U.S., primarily reflecting higher demand, partially offset by lower pricing. WELIREG 220 160 37% 37% Growth primarily due to higher demand in the U.S. and continued launch uptake in several international markets, partially offset by lower net pricing in the U.S. OHTUVAYRE 178 - - - Represents sales following the Company's Oct. 7, 2025 acquisition of Verona Pharma plc (Verona Pharma). Animal Health 1,505 1,397 8% 6% Growth primarily due to higher demand of livestock products. Livestock 987 889 11% 9% Growth primarily driven by higher demand across all species, as well as improved supply and new product launches. Companion Animal 518 508 2% 0% Growth from new product launches was partially offset by lower demand for other products in portfolio, reflecting a reduction in veterinary visits. Sales of BRAVECTO line of products were $222 million and $209 million in current and prior-year quarters, respectively, which represents an increase of 6%, or 5% excluding impact of foreign exchange. Other Revenues** 52 185 -71% -15% Decline primarily due to unfavorable impact of revenue-hedging activities and lower revenue from third-party manufacturing arrangements. *Alliance revenue for this product represents the Company’s share of profits, which are product sales net of cost of sales and commercialization costs. **Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. N/M - Not meaningful. Full-Year Sales Performance The following table reflects sales of the Company’s top products and significant performance drivers. Year Ended $ in millions Dec. 31, 2025 Dec. 31, 2024 Change Change Ex-Exchange Total Sales $65,011 $64,168 1% 2% Pharmaceutical 58,142 57,400 1% 1% KEYTRUDA/KEYTRUDA QLEX 31,680 29,482 7% 7% GARDASIL/GARDASIL 9 5,233 8,583 -39% -39% JANUVIA/JANUMET 2,544 2,268 12% 13% PROQUAD, M-M-R II and VARIVAX 2,451 2,485 -1% -2% BRIDION 1,841 1,764 4% 4% Lynparza* 1,450 1,311 11% 10% WINREVAIR 1,443 419 N/M N/M Lenvima* 1,053 1,010 4% 4% PREVYMIS 978 785 25% 23% VAXNEUVANCE 825 808 2% 1% CAPVAXIVE 759 97 N/M N/M WELIREG 716 509 41% 41% ROTATEQ 673 711 -5% -5% Reblozyl* 525 371 41% 41% LAGEVRIO 380 964 -61% -61% Simponi** - 543 -100% -100% Animal Health 6,354 5,877 8% 9% Livestock 3,896 3,462 13% 14% Companion Animal 2,458 2,415 2% 2% Other Revenues*** 515 891 -42% -6% *Alliance revenue for Lynparza and Lenvima represent the Company’s share of profits, which are product sales net of cost of sales and commercialization costs. Alliance revenue for Reblozyl represents royalties. **Marketing rights in former territories of the Company reverted to Johnson & Johnson on Oct. 1, 2024. ***Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. N/M - Not meaningful. In addition, Koselugo alliance revenue was $436 million for the full year of 2025 compared with $170 million for the full year of 2024. The increase was due to an amendment to the collaboration agreement with AstraZeneca in 2025, which discontinued the provisions whereby the Company shared revenue and costs with AstraZeneca, and revised the payment structure, resulting in the Company’s recognition of a $150 million upfront payment and $175 million of regulatory milestones. Full-year 2025 Pharmaceutical sales were $58.1 billion, representing growth of 1% both nominally and excluding the impact of foreign exchange. Sales growth was primarily driven by higher sales in oncology, particularly KEYTRUDA and WELIREG, as well as increased alliance revenue from Koselugo (resulting from the amendment to the collaboration agreement noted above), Reblozyl and Lynparza. Also contributing to sales growth were higher sales in the cardiometabolic and respiratory franchise largely attributable to the ongoing launch of WINREVAIR, as well as the inclusion of OHTUVAYRE sales resulting from the acquisition of Verona Pharma, which closed on Oct. 7, 2025. Growth in the diabetes franchise, largely attributable to higher net pricing of JANUVIA in the U.S., also contributed to sales growth. Sales growth in 2025 was partially offset by lower sales in the vaccines franchise reflecting lower sales of GARDASIL/GARDASIL 9, which were offset in part by the ongoing launch of CAPVAXIVE and the U.S. launch of ENFLONSIA. Lower sales in the immunology franchise (due to the return of the marketing rights for Simponi and Remicade in former Company territories to Johnson & Johnson on Oct. 1, 2024) and lower sales in the virology franchise (largely attributable to LAGEVRIO) also offset Pharmaceutical sales growth in 2025. Full-year 2025 Animal Health sales were $6.4 billion, representing growth of 8%, or 9% excluding the impact of foreign exchange. Sales growth was primarily driven by the performance of Livestock products across all species and new product launches in Companion Animal. Sales of the BRAVECTO line of products were $1.1 billion in 2025, representing growth of 1% both nominally and excluding the impact of foreign exchange. Fourth-Quarter and Full-Year Expense and Related Information The table below presents selected expense information. $ in millions GAAP Acquisition- and Divestiture- Related Costs3 Restructuring Costs (Income) Loss From Investments in Equity Securities Non- GAAP2 Fourth Quarter 2025 Cost of sales $5,551 $1,054 $1,173 $- $3,324 Selling, general and administrative 2,898 48 2 - 2,848 Research and development 3,886 5 (111) - 3,992 Restructuring costs 213 - 213 - - Other (income) expense, net 432 - - 206 226 Fourth Quarter 2024 Cost of sales $3,828 $701 $121 $- $3,006 Selling, general and administrative 2,864 29 16 - 2,819 Research and development 4,585 12 (1) - 4,574 Restructuring costs 51 - 51 - - Other (income) expense, net 126 (31) - 152 5 $ in millions GAAP Acquisition- and Divestiture- Related Costs3 Restructuring Costs (Income) Loss From Investments in Equity Securities Non- GAAP2 Year Ended Dec. 31, 2025 Cost of sales $16,382 $2,871 $1,484 $- $12,027 Selling, general and administrative 10,733 120 3 - 10,610 Research and development 15,789 19 175 - 15,595 Restructuring costs 889 - 889 - - Other (income) expense, net 151 (3) - (306) 460 Year Ended Dec. 31, 2024 Cost of sales $15,193 $2,409 $495 $- $12,289 Selling, general and administrative 10,816 117 83 - 10,616 Research and development 17,938 72 1 - 17,865 Restructuring costs 309 - 309 - - Other (income) expense, net (24) (79) - 45 10 GAAP Expense, EPS and Related Information Gross margin was 66.2% for the fourth quarter of 2025 compared with 75.5% for the fourth quarter of 2024. Gross margin was 74.8% for the full year of 2025 compared with 76.3% for the full year of 2024. The gross margin decline in both periods was primarily due to the unfavorable impacts of higher restructuring costs (primarily related to the accelerated depreciation of manufacturing lines at two sites under the 2025 Restructuring Program), inventory write-offs and amortization of intangible assets, as well as the recognition of inventory fair value step-up related to the Verona Pharma acquisition, partially offset by the favorable impact of product mix. Selling, general and administrative (SG&A) expenses were $2.9 billion in the fourth quarter of 2025, an increase of 1% compared with the fourth quarter of 2024. The increase was primarily due to higher administrative costs, partially offset by lower promotional costs. Full-year 2025 SG&A expenses were $10.7 billion, a decrease of 1% compared with the full year of 2024. The decrease was primarily due to lower restructuring and promotional costs, partially offset by increased administrative costs. Research and development (R&D) expenses were $3.9 billion in the fourth quarter of 2025, a decrease of 15% compared with the fourth quarter of 2024. The decrease was primarily due to lower charges for business development activity and a reduction to estimated contractual termination costs associated with restructuring actions, partially offset by higher clinical development costs. R&D expenses were $15.8 billion for the full year of 2025, a decrease of 12% compared with the full year of 2024. The decrease was primarily due to lower charges for business development activity, partially offset by higher clinical development spending and higher restructuring costs. Other (income) expense, net, was $432 million of expense in the fourth quarter of 2025 compared with $126 million of expense in the fourth quarter of 2024 primarily due to higher net interest expense, higher foreign exchange losses and increased net losses from investments in equity securities. Other (income) expense, net, was $151 million of expense in the full year of 2025 compared with $24 million of income in the full year of 2024. The unfavorable year-over-year change primarily reflects $170 million of income in 2024 related to the expansion of an existing development and commercialization agreement with Daiichi Sankyo, as well as higher net interest expense and higher foreign exchange losses in 2025, partially offset by higher net income from investments in equity securities in 2025. The effective tax rate was 13.4% for the fourth quarter of 2025 and 13.3% for the full year of 2025. GAAP EPS was $1.19 for the fourth quarter of 2025 compared with $1.48 for the fourth quarter of 2024. The decrease was primarily driven by higher restructuring costs and amortization of intangible assets, partially offset by favorability from lower charges for business development transactions, as well as operational strength in the business driven in part by the benefits of the previously announced multiyear optimization initiative. GAAP EPS was $7.28 for the full year of 2025 compared with $6.74 for the full year of 2024. The increase was primarily driven by favorability from lower charges for business development transactions and operational strength in the business, partially offset by higher restructuring costs and amortization of intangible assets. Non-GAAP Expense, EPS and Related Information Non-GAAP gross margin was 79.7% for the fourth quarter of 2025 compared with 80.8% for the fourth quarter of 2024. The decrease was primarily due to higher inventory write-offs, partially offset by the favorable impact of product mix. Non-GAAP gross margin was 81.5% for the full year of 2025 compared with 80.8% for the full year of 2024. The increase was primarily due to the favorable impact of product mix, partially offset by higher inventory write-offs. Non-GAAP SG&A expenses were $2.8 billion in the fourth quarter of 2025, an increase of 1% compared with the fourth quarter of 2024. The increase was primarily due to higher administrative costs, partially offset by lower promotional costs. Non-GAAP SG&A expenses were $10.6 billion for the full year of 2025, flat compared with the full year of 2024 as lower promotional costs were largely offset by higher administrative costs. Non-GAAP R&D expenses were $4.0 billion in the fourth quarter of 2025, a decrease of 13% compared with the fourth quarter of 2024. Non-GAAP R&D expenses were $15.6 billion for the full year of 2025, a decrease of 13% compared with the full year of 2024. The decrease in both periods was primarily due to lower charges for business development activity, partially offset by higher clinical development costs. Non-GAAP other (income) expense, net, was $226 million of expense in the fourth quarter of 2025 compared with $5 million of expense in the fourth quarter of 2024 primarily due to higher net interest expense and higher foreign exchange losses. Non-GAAP other (income) expense, net, was $460 million of expense in the full year of 2025 compared with $10 million of expense in the full year of 2024. The unfavorable year-over-year change primarily reflects $170 million of income in 2024 related to the expansion of an existing development and commercialization agreement with Daiichi Sankyo, as well as higher net interest expense and higher foreign exchange losses in 2025. The non-GAAP effective tax rate was 15.4% for the fourth quarter of 2025 and 14.4% for the full year of 2025. Non-GAAP EPS was $2.04 for the fourth quarter of 2025 compared with $1.72 for the fourth quarter of 2024. Non-GAAP EPS was $8.98 for the full year of 2025 compared with $7.65 for the full year of 2024. The increase in both periods was primarily driven by favorability from lower charges for business development transactions, as well as operational strength in the business driven in part by the benefits of the previously announced multiyear optimization initiative. A reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows. Fourth Quarter Year Ended $ in millions, except EPS amounts 2025 2024 Dec. 31, 2025 Dec. 31, 2024 EPS GAAP EPS $1.19 $1.48 $7.28 $6.74 Difference 0.85 0.24 1.70 0.91 Non-GAAP EPS that excludes items listed below2 $2.04 $1.72 $8.98 $7.65 Net Income GAAP net income1 $2,963 $3,743 $18,254 $17,117 Difference 2,125 629 4,259 2,327 Non-GAAP net income that excludes items listed below1,2 $5,088 $4,372 $22,513 $19,444 Excluded Items: Acquisition- and divestiture-related costs3 $1,107 $711 $3,007 $2,519 Restructuring costs 1,277 187 2,551 888 Loss (income) from investments in equity securities 206 152 (306) 45 Decrease to net income before taxes 2,590 1,050 5,252 3,452 Estimated income tax (benefit) expense4 (465) (421) (993) (1,125) Decrease to net income $2,125 $629 $4,259 $2,327 Pipeline and Portfolio Highlights In 2025, the Company announced positive late-stage trial results from 18 Phase 3 trials and began enrolling patients in 21 new Phase 3 studies evaluating multiple indications and therapeutic areas, with approximately 80 Phase 3 studies currently underway. Throughout the fourth quarter, the Company made important progress to advance its broad, diverse pipeline, meeting significant regulatory and clinical milestones. Oncology: U.S. Food and Drug Administration (FDA) approved KEYTRUDA and KEYTRUDA QLEX, each in combination with Padcev, for the perioperative treatment of adult patients with muscle-invasive bladder cancer (MIBC) who are ineligible for cisplatin-based chemotherapy based on Phase 3 KEYNOTE-905 trial. Approvals represent the first PD-1 inhibitor plus antibody-drug conjugate (ADC) regimens for this patient population. FDA awarded a priority review voucher under the Commissioner’s National Priority Voucher (CNPV) pilot program for sac-TMT, an investigational anti-TROP2 ADC being developed in collaboration with Kelun-Biotech. European Commission (EC) approved the subcutaneous route of administration and new pharmaceutical formulation of KEYTRUDA for use across all KEYTRUDA indications for adult patients in Europe. FDA accepted two supplemental Biologics License Applications (sBLAs) for KEYTRUDA and KEYTRUDA QLEX, each with Trodelvy, for the first-line treatment of certain patients with PD-L1+ inoperable (unresectable) locally advanced or metastatic TNBC based on Phase 3 KEYNOTE-D19/ASCENT-04 trial. FDA set Prescription Drug User Fee Act (PDUFA) dates in the second half of 2026 for these applications. Announced positive topline results from Phase 3 KEYNOTE-B15 trial in patients with MIBC who are eligible for cisplatin-based chemotherapy showing KEYTRUDA plus Padcev significantly improved event-free survival (EFS), overall survival (OS) and pathologic complete response (pCR) rates versus neoadjuvant chemotherapy and surgery when given before and after surgery. In collaboration with Moderna, Inc. (Moderna), announced median five-year follow-up data from Phase 2b KEYNOTE-942/mRNA-4157-P201 study for intismeran autogene, an investigational mRNA-based individualized neoantigen therapy, in combination with KEYTRUDA in patients with high-risk melanoma (stage III/IV) following complete resection. U.S. Food and Drug Administration (FDA) approved KEYTRUDA and KEYTRUDA QLEX, each in combination with Padcev, for the perioperative treatment of adult patients with muscle-invasive bladder cancer (MIBC) who are ineligible for cisplatin-based chemotherapy based on Phase 3 KEYNOTE-905 trial. Approvals represent the first PD-1 inhibitor plus antibody-drug conjugate (ADC) regimens for this patient population. FDA awarded a priority review voucher under the Commissioner’s National Priority Voucher (CNPV) pilot program for sac-TMT, an investigational anti-TROP2 ADC being developed in collaboration with Kelun-Biotech. European Commission (EC) approved the subcutaneous route of administration and new pharmaceutical formulation of KEYTRUDA for use across all KEYTRUDA indications for adult patients in Europe. FDA accepted two supplemental Biologics License Applications (sBLAs) for KEYTRUDA and KEYTRUDA QLEX, each with Trodelvy, for the first-line treatment of certain patients with PD-L1+ inoperable (unresectable) locally advanced or metastatic TNBC based on Phase 3 KEYNOTE-D19/ASCENT-04 trial. FDA set Prescription Drug User Fee Act (PDUFA) dates in the second half of 2026 for these applications. Announced positive topline results from Phase 3 KEYNOTE-B15 trial in patients with MIBC who are eligible for cisplatin-based chemotherapy showing KEYTRUDA plus Padcev significantly improved event-free survival (EFS), overall survival (OS) and pathologic complete response (pCR) rates versus neoadjuvant chemotherapy and surgery when given before and after surgery. In collaboration with Moderna, Inc. (Moderna), announced median five-year follow-up data from Phase 2b KEYNOTE-942/mRNA-4157-P201 study for intismeran autogene, an investigational mRNA-based individualized neoantigen therapy, in combination with KEYTRUDA in patients with high-risk melanoma (stage III/IV) following complete resection. Infectious Diseases: Announced positive topline results from the Phase 3 trial of the investigational, once-daily, oral, two-drug, single-tablet regimen of doravirine/islatravir (DOR/ISL) for the treatment of adults with HIV-1 infection who had not previously received antiretroviral treatment (treatment-naïve). Announced positive topline results from the Phase 3 trial of the investigational, once-daily, oral, two-drug, single-tablet regimen of doravirine/islatravir (DOR/ISL) for the treatment of adults with HIV-1 infection who had not previously received antiretroviral treatment (treatment-naïve). Cardiometabolic and Respiratory: Presented new data at the American Heart Association Scientific Sessions 2025, including results from the Phase 3 CORALreef Lipids and heterozygous familial hypercholesterolemia (HeFH) trials, demonstrating that enlicitide decanoate, an investigational, oral proprotein convertase subtilisin/kexin type 9 (PCSK9) inhibitor being evaluated for the treatment of adults with hypercholesterolemia, significantly reduced low-density lipoprotein cholesterol (LDL-C) with a safety profile comparable to placebo. FDA awarded a priority review voucher under the CNPV pilot program for enlicitide decanoate. In January 2026, EC approved an expanded indication for WINREVAIR, in combination with other pulmonary arterial hypertension (PAH) therapies, for the treatment of PAH (Group 1 pulmonary hypertension) in adult patients with World Health Organization (WHO) Functional Class II, III and IV based on Phase 3 ZENITH trial. In February 2026, FDA accepted a new sBLA for WINREVAIR seeking approval to update the U.S. product label based on Phase 3 HYPERION trial. FDA set PDUFA date of September 21, 2026. Announced that Phase 2, proof-of-concept CADENCE study evaluating WINREVAIR in adults for the treatment of combined post- and precapillary pulmonary hypertension (CpcPH) due to heart failure with preserved ejection fraction (HFpEF) met its primary endpoint. Presented new data at the American Heart Association Scientific Sessions 2025, including results from the Phase 3 CORALreef Lipids and heterozygous familial hypercholesterolemia (HeFH) trials, demonstrating that enlicitide decanoate, an investigational, oral proprotein convertase subtilisin/kexin type 9 (PCSK9) inhibitor being evaluated for the treatment of adults with hypercholesterolemia, significantly reduced low-density lipoprotein cholesterol (LDL-C) with a safety profile comparable to placebo. FDA awarded a priority review voucher under the CNPV pilot program for enlicitide decanoate. In January 2026, EC approved an expanded indication for WINREVAIR, in combination with other pulmonary arterial hypertension (PAH) therapies, for the treatment of PAH (Group 1 pulmonary hypertension) in adult patients with World Health Organization (WHO) Functional Class II, III and IV based on Phase 3 ZENITH trial. In February 2026, FDA accepted a new sBLA for WINREVAIR seeking approval to update the U.S. product label based on Phase 3 HYPERION trial. FDA set PDUFA date of September 21, 2026. Announced that Phase 2, proof-of-concept CADENCE study evaluating WINREVAIR in adults for the treatment of combined post- and precapillary pulmonary hypertension (CpcPH) due to heart failure with preserved ejection fraction (HFpEF) met its primary endpoint. Business Development: In 2026, completed acquisition of Cidara Therapeutics, Inc. (Cidara) for a total transaction value of approximately $9.2 billion. Added MK-1406 (formerly CD388), an investigational long-acting, strain-agnostic antiviral agent designed to prevent influenza infection in individuals at higher risk of complications, to the Company’s portfolio. MK-1406 is currently being evaluated in the Phase 3 ANCHOR study. Entered into strategic financing agreement with Blackstone Life Sciences to partially fund the development of sac-TMT in 2026. Entered into an agreement with Falk for certain development and commercialization rights to MK-8690, an investigational anti-CD30 ligand monoclonal antibody. In 2026, completed acquisition of Cidara Therapeutics, Inc. (Cidara) for a total transaction value of approximately $9.2 billion. Added MK-1406 (formerly CD388), an investigational long-acting, strain-agnostic antiviral agent designed to prevent influenza infection in individuals at higher risk of complications, to the Company’s portfolio. MK-1406 is currently being evaluated in the Phase 3 ANCHOR study. Entered into strategic financing agreement with Blackstone Life Sciences to partially fund the development of sac-TMT in 2026. Entered into an agreement with Falk for certain development and commercialization rights to MK-8690, an investigational anti-CD30 ligand monoclonal antibody. Notable recent news releases on the Company’s pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company’s website to read the releases.* Oncology FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Padcev, as Perioperative Treatment for Adults With Cisplatin-Ineligible MIBC; Based on Results From Phase 3 KEYNOTE-905 Trial EC Approved Subcutaneous Administration of KEYTRUDA for All Adult Indications Approved in EU; Based on Results From Phase 3 3475A-D77 Trial KEYTRUDA Plus Padcev Significantly Improved EFS, OS and pCR Rates for Cisplatin-Eligible Patients With MIBC When Given Before and After Surgery; Based on Results From Phase 3 KEYNOTE-B15 Trial The Company and Moderna Announced 5-Year Data for Intismeran Autogene in Combination With KEYTRUDA Demonstrated Sustained Improvement in the Primary Endpoint of Recurrence-Free Survival in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection; Based on Follow-up Analysis From Phase 2b KEYNOTE-942/mRNA-4157-P201 Trial The Company Initiated Phase 3 KANDLELIT-007 Trial Evaluating Calderasib (MK-1084), an Investigational Oral KRAS G12C Inhibitor, in Combination With KEYTRUDA QLEX in Certain Patients With Advanced NSCLC The Company Presented Data at the American Society of Hematology Annual Meeting 2025 That Showcased Continued Advancements in Hematology Pipeline and Novel Therapeutic Approaches Vaccines and Infectious Diseases The Company Announced Positive Topline Results From Pivotal Phase 3 Trial Evaluating Investigational, Once-Daily, Oral, Two-Drug, Single-Tablet Regimen of DOR/ISL in Treatment-Naïve Adults With HIV-1 Infection Cardiometabolic and Respiratory Enlicitide Decanoate Significantly Reduced LDL-C in Phase 3 CORALreef Lipids Trial Enlicitide Decanoate Significantly Reduced LDL-C in Adults With HeFH in Phase 3 CORALreef HeFH Trial WINREVAIR Met Primary Endpoint in Phase 2, Proof-Of-Concept CADENCE Study in Adults With CpcPH Due to HFpEF Neuroscience The Company Showcased Data for Alzheimer’s Disease Candidates MK-2214 and MK-1167 at Clinical Trials on Alzheimer’s Disease 2025 Animal Health FDA Conditionally Approved EXZOLT CATTLE-CA1 for Prevention and Treatment of New World Screwworm (Cochliomyia Hominivorax) Larvae (Myiasis) *References to the Company’s name in the above news release titles have been modified for the purpose of this announcement. U.S. Government Agreement The Company reached an agreement with the U.S. government that is intended to lower medicine costs for Americans. This agreement enables the Company to continue its long-standing commitment to advancing breakthrough scientific discoveries for patients and helps ensure Americans can access the medicines they need at lower costs. The voluntary agreement addresses all four components of the President’s July letter. Under the agreement, among other things, the Company plans to provide key products through a direct-to-patient program at affordable prices for eligible patients in the U.S. In addition, the Company reached an understanding with the U.S. Department of Commerce to delay Section 232 tariffs for three years, enabling the Company to make investments in the U.S. to reshore manufacturing for American patients. The Company has committed more than $70 billion in capital and R&D spending to strengthen U.S. production and innovation. Full-Year 2026 Financial Outlook The following table summarizes the Company’s full-year financial outlook. Full Year 2026 Sales* $65.5 billion to $67.0 billion Non-GAAP Gross margin2 Approximately 82% Non-GAAP Operating expenses2** $35.9 billion to $36.9 billion Non-GAAP Other (income) expense, net2 Approximately $1.3 billion expense Non-GAAP Effective tax rate2 23.5% to 24.5% Non-GAAP EPS2*** $5.00 to $5.15 Share count (assuming dilution) Approximately 2.48 billion *The Company does not have any non-GAAP adjustments to sales. **Includes a one-time charge of approximately $9.0 billion associated with the acquisition of Cidara. Outlook does not assume any additional significant potential business development transactions. ***Includes a one-time charge of approximately $3.65 per share associated with the acquisition of Cidara. The Company has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the Company’s future GAAP results. The Company anticipates full-year 2026 sales to be between $65.5 billion and $67.0 billion, including a positive impact from foreign exchange of approximately 1% at mid-January 2026 exchange rates. The Company’s full-year non-GAAP effective income tax rate is expected to be between 23.5% and 24.5% including the impact of the non-tax deductible one-time charge for the acquisition of Cidara. The Company expects full-year 2026 non-GAAP EPS to be between $5.00 and $5.15, including a positive impact from foreign exchange of approximately $0.10 per share at mid-January 2026 exchange rates. This range includes a one-time charge of approximately $9.0 billion, or approximately $3.65 per share, as well as approximately $0.30 per share of related financing and operational costs, related to the acquisition of Cidara. In 2025, non-GAAP EPS of $8.98 was negatively impacted by one-time charges of $0.20 per share related to certain business development transactions. Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions. Non-GAAP EPS excludes acquisition- and divestiture-related costs, costs related to restructuring programs, as well as income and losses from investments in equity securities. Earnings Conference Call Investors, journalists and the general public may access a live audio webcast of the call on Tuesday, Feb. 3, at 9 a.m. ET via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures and slides highlighting the results, will be available on the Company’s website. All participants may join the call by dialing (800) 369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590. About Our Company At Merck & Co., Inc., Rahway, N.J., USA, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA This news release of Merck & Co., Inc., Rahway, N.J., USA (the “Company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the Company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the Company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov). Appendix Generic product names are provided below. Pharmaceutical BRIDION (sugammadex) CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine) ENFLONSIA (clesrovimab-cfor) GARDASIL (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant) GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant) JANUMET (sitagliptin and metformin HCl) JANUVIA (sitagliptin) KEYTRUDA (pembrolizumab) KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph) LAGEVRIO (molnupiravir) Lenvima (lenvatinib) Lynparza (olaparib) M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live) OHTUVAYRE (ensifentrine) PREVYMIS (letermovir) PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live) Reblozyl (luspatercept-aamt) ROTATEQ (Rotavirus Vaccine, Live, Oral, Pentavalent) Simponi (golimumab) VARIVAX (Varicella Virus Vaccine Live) VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine) WELIREG (belzutifan) WINREVAIR (sotatercept-csrk) Animal Health BRAVECTO (fluralaner) ____________________ 1 Net income attributable to the Company. 2 The Company is providing certain 2025 and 2024 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the Company’s results because management uses non-GAAP results to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to this release. 3 Reflects expenses related to business combinations, including the amortization of intangible assets, intangible asset impairment charges, and expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration, transaction and certain other costs associated with acquisitions and divestitures, as well as amortization of intangible assets related to collaborations, licensing arrangements and asset acquisitions, and recognition of fair value step-up to inventories for asset acquisitions. 4 Includes the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments for all periods presented. Amount in the full year of 2025 also includes a $60 million net benefit, which reflects a net benefit related to favorable audit reserve adjustments. Amounts in the fourth quarter and full year of 2024 also include a $260 million benefit and a $519 million benefit, respectively, due to reductions in reserves for unrecognized income tax benefits resulting from the expiration of the statute of limitations for assessments related to certain federal tax return years. The benefit recognized in the fourth quarter of 2024 relates to the 2020 federal tax return year and the benefit for the full year of 2024 relates to both the 2020 and 2019 federal tax return years. 4Q25 4Q24 $ 16,400 $ 15,624 5% $ 65,011 $ 64,168 1% 5,551 3,828 45% 16,382 15,193 8% 2,898 2,864 1% 10,733 10,816 -1% 3,886 4,585 -15% 15,789 17,938 -12% 213 51 889 309 432 126 151 (24 ) 3,420 4,170 -18% 21,067 19,936 6% 458 425 2,804 2,803 2,962 3,745 -21% 18,263 17,133 7% (1 ) 2 9 16 $ 2,963 $ 3,743 -21% $ 18,254 $ 17,117 7% $ 1.19 $ 1.48 -20% $ 7.28 $ 6.74 8% 2,488 2,537 2,507 2,541 13.4 % 10.2 % 13.3 % 14.1 % $ 5,551 1,054 1,173 2,227 $ 3,324 2,898 48 2 50 2,848 3,886 5 (111 ) (106 ) 3,992 213 213 213 – 432 206 206 226 3,420 (1,107 ) (1,277 ) (206 ) (2,590 ) 6,010 458 (187 ) (3) (234 ) (3) (44 ) (3) (465 ) 923 2,962 (920 ) (1,043 ) (162 ) (2,125 ) 5,087 2,963 (920 ) (1,043 ) (162 ) (2,125 ) 5,088 $ 1.19 (0.37 ) (0.42 ) (0.06 ) (0.85 ) $ 2.04 13.4 % 15.4 % $ 16,382 2,871 1,484 4,355 $ 12,027 10,733 120 3 123 10,610 15,789 19 175 194 15,595 889 889 889 – 151 (3 ) (306 ) (309 ) 460 21,067 (3,007 ) (2,551 ) 306 (5,252 ) 26,319 2,804 (525 ) (3) (473 ) (3) 65 (3) (60 ) (4) (993 ) 3,797 18,263 (2,482 ) (2,078 ) 241 60 (4,259 ) 22,522 18,254 (2,482 ) (2,078 ) 241 60 (4,259 ) 22,513 $ 7.28 (0.99 ) (0.83 ) 0.10 0.02 (1.70 ) $ 8.98 13.3 % 14.4 % 2025 2024 4Q Full Year $15,529 $15,806 $17,276 $16,400 $65,011 $15,775 $16,112 $16,657 $15,624 $64,168 5 4 1 2 13,638 14,050 15,611 14,843 58,142 14,006 14,408 14,943 14,042 57,400 6 4 1 1 7,205 7,956 8,142 8,337 31,641 6,947 7,270 7,429 7,836 29,482 6 5 7 7 5 35 40 - - - - 312 370 379 389 1,450 292 317 337 365 1,311 7 4 11 10 258 265 258 272 1,053 255 249 251 255 1,010 7 6 4 4 137 162 196 220 716 85 126 139 160 509 37 37 41 41 119 107 136 164 525 71 90 100 110 371 48 48 41 41 1,327 1,126 1,749 1,031 5,233 2,249 2,478 2,306 1,550 8,583 -34 -35 -39 -39 539 609 684 619 2,451 570 617 703 594 2,485 4 3 -1 -2 230 229 226 140 825 219 189 239 161 808 -13 -16 2 1 107 129 244 279 759 47 50 97 228 121 204 119 673 216 163 193 139 711 -14 -15 -5 -5 41 38 45 42 166 61 59 68 74 263 -43 -44 -37 -37 441 461 439 499 1,841 440 455 420 449 1,764 11 11 4 4 208 228 266 275 978 174 188 208 215 785 28 26 25 23 70 74 81 87 312 56 62 64 70 252 24 23 24 24 83 96 43 25 247 73 92 96 79 340 -68 -68 -27 -27 280 336 360 467 1,443 70 149 200 419 133 133 106 123 112 129 470 98 106 102 109 415 18 18 13 13 68 80 82 83 312 70 72 72 73 287 14 9 9 6 178 178 - - - - 102 83 138 57 380 350 110 383 121 964 -53 -53 -61 -61 90 86 82 67 325 111 89 102 92 394 -27 -28 -18 -18 67 83 77 79 306 56 60 65 69 249 15 9 23 20 45 41 43 42 171 42 39 42 40 163 6 4 5 4 50 40 47 49 186 46 53 78 45 222 8 9 -16 -16 184 172 189 543 -100 -100 39 35 41 114 -100 -100 549 372 382 302 1,604 419 405 278 232 1,334 30 30 20 21 247 251 243 199 940 251 224 204 255 935 -22 -22 1 2 729 584 948 658 2,917 632 618 638 699 2,590 -6 -5 13 13 1,588 1,646 1,615 1,505 6,354 1,511 1,482 1,487 1,397 5,877 8 6 8 9 924 961 1,023 987 3,896 850 837 886 889 3,462 11 9 13 14 664 685 592 518 2,458 661 645 601 508 2,415 2 0 2 2 303 110 50 52 515 258 222 227 185 891 -71 -15 -42 -6