How Merck makes money

Period

FY2025

How does Merck make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Merck & Co. Inc. · FY2025 · year ended 2025-12-31

Revenue$65.0BGross profit$48.6B · 75%Cost of revenue$16.4B · 25%Operating income$22.1B · 34%Operating expenses$26.5B · 41%R&D$15.8B · 24%SG&A$10.7B · 17%Pre-tax income$21.1B · 32%Other expense$1.0B · 2%Net income$18.3B · 28%Income tax$2.8B · 4%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.