Investing.com -- Merck reported significantly better-than-expected earnings for the second quarter, while narrowing and raising its full-year revenue outlook.

The company posted a loss per share of $0.13 for the quarter, topping the analyst estimate of a loss of $0.27. Revenue came in at $16.6 billion, up 4% excluding currency effects, ahead of the $16.41 billion consensus estimate.

Keytruda and Keytruda Qlex sales totaled $8.4 billion, up 4% excluding currency effects, including $463 million from Keytruda Qlex. Winrevair sales rose 75% excluding currency effects to $588 million.

Merck shares rose 1.4% in premarket trading by 06:42 ET.

“We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches,” said Robert Davis, chairman and CEO of Merck.

Looking ahead, Merck cut its full-year 2026 earnings guidance, now expecting adjusted EPS of $2.66 to $2.76, down from a prior outlook of $5.04 to $5.16, though roughly in line with the $2.76 consensus. The lowered guidance includes charges of $2.43 per share tied to the acquisition of Terns, comprised of a one-time charge of $2.31 per share and approximately $0.12 per share in costs to finance the deal and advance MK-4208, formerly known as TERN-701.

The company narrowed and raised its expected full-year worldwide sales range to $66.3 billion to $67.3 billion, up from a prior range of $65.8 billion to $67.0 billion, and above the $66.89 billion consensus.

Merck now expects full-year gross margin of approximately 81%, down from a prior estimate of around 82%, and operating expenses of $42.0 billion to $42.7 billion, up sharply from a previous forecast of $36.0 billion to $36.8 billion.