Merck shares tumbled Tuesday morning after the drugmaker's soft outlook outweighed fourth-quarter revenue that topped expectations.

Merck (MRK) reported $15.62 billion in revenue for the quarter, up 7% year-over-year and above the $15.43 billion analysts had expected, according to estimates compiled by Visible Alpha. The company's net income came in at $3.74 billion, or $1.48 per share, compared to a $1.2 billion loss a year ago but below the $3.92 billion analysts had expected.

After adjusting for one-time charges like costs related to acquisitions, however, Merck's adjusted net income of $4.37 billion topped estimates of $4.21 billion.

2025 Outlook Comes in Well Short of Estimates

For 2025, the drugmaker expects revenue to come in between $64.1 billion to $65.6 billion, with adjusted earnings per share forecasꦉt between $8.88 to $9.03 per share. Analysts had higher expectations, with the current 2025 consensus at $67.08 billion in revenue and $9.09 adjusted EPS.

Sales rose across most of Merck's medication portfolio, with declining sales for Gardasil and Januvia attributed to lower demand in some international regions and lower pricing in the U.S., respectively.

Merck shares were down more than 10% 🐽Tuesday mꦚorning.