Compare · Health Care
AbbVie vs. Merck: how they make money
The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.
Each company in 5 points
AbbVie
1 · What it sells
AbbVie sells prescription medicines, and two immunology drugs, Skyrizi and Rinvoq, brought in $25.9 billion of its $61.2 billion FY2025 revenue.
Sources and detail on the AbbVie page2 · Who pays it
AbbVie reports no revenue by final payer and three US wholesalers handled substantially all its US drug sales; by location, the US paid 76.2% of FY2025 revenue and other countries 23.8%.
Sources and detail on the AbbVie page3 · What it keeps from $100
Of every $100 of FY2025 revenue, AbbVie kept $6.9 as net income after $8.2 of bought research and $9.2 of other expenses, mostly a non-cash contingent-consideration charge, while operating earnings were $24.6.
Sources and detail on the AbbVie page4 · Where the operating profit comes from
AbbVie reports one business segment and no profit by therapeutic area; immunology brought in $30.4 billion, or 49.7% of FY2025 revenue, and operating earnings were $15.1 billion.
Sources and detail on the AbbVie page5 · The one thing to watch
Skyrizi and Rinvoq were 48.7% of AbbVie's Q3 FY2026 revenue, and their basic US patents are expected to expire in 2033.
Sources and detail on the AbbVie page
Merck
1 · What it sells
Merck sells prescription medicines, vaccines and animal health products, and Keytruda, a cancer medicine, brought in $31.6 billion of its $65.0 billion of FY2025 sales.
Sources and detail on the Merck page2 · Who pays it
Merck reports no sales by customer or final payer; by location, in FY2025 the US paid 56.2% of sales, Europe, the Middle East and Africa 22.4% and other regions 21.4%.
Sources and detail on the Merck page3 · What it keeps from $100
Of every $100 of FY2025 sales, Merck kept $28.1 as net income after $24.3 of research, and operating income, a Cityfort calculation from the FY2025 10-K, was $32.6.
Sources and detail on the Merck page4 · Where the operating profit comes from
Pharmaceutical segment profit was $45.8 billion in FY2025 and Animal Health's $2.1 billion, before $26.8 billion of costs Merck keeps outside its segments, such as most research and amortization.
Sources and detail on the Merck page5 · The one thing to watch
Keytruda was 49% of Merck's FY2025 sales, and Merck expects a Medicare set price for it from Jan 1, 2029, after its key US patent runs out in 2028.
Sources and detail on the Merck page
Where each $100 went
Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.
AbbVie
Where $100 went · FY2025
| Research and development | $14.9 |
|---|---|
| Cost of products sold | $29.8 |
| Selling, general and admin | $22.9 |
| Other expenses (mostly contingent consideration) | $9.2 |
| Research bought from others (acquired IPR&D) | $8.2 |
| Interest | $4.3 |
| Income tax | $3.9 |
| Kept as net income | $6.9 |
| Total | $100 |
Cityfort calculation from the FY2025 10-K. Of every $100 of revenue in FY2025: each line = line ÷ $61.2 billion × 100. Other expenses are other expense ($5.8 billion, which includes a $6.5 billion contingent-consideration charge offset by other items) plus a small currency loss, minus $241 million of other operating income. Tax includes $7 million for noncontrolling interests.
Merck
Where $100 went · FY2025
| Research and development | $24.3 |
|---|---|
| Cost of making products | $25.2 |
| Selling, general and administrative | $16.5 |
| Restructuring and other items | $1.6 |
| Income tax and small items | $4.3 |
| Kept as net income | $28.1 |
| Total | $100 |
Cityfort calculation from the FY2025 10-K. Of every $100 of sales in FY2025: each line = line ÷ $65.0 billion × 100. Other items were a net cost, so no other income is added. Lines are rounded and add to 100.
Line items differ because each company groups its costs its own way in its filings. Only on AbbVie's receipt: Cost of products sold; Selling, general and admin; Other expenses (mostly contingent consideration); Research bought from others (acquired IPR&D); Interest; Income tax. Only on Merck's receipt: Cost of making products; Selling, general and administrative; Restructuring and other items; Income tax and small items.
Revenue, net income and free cash flow
Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).
Revenue
AbbVie
Merck
See the numbers
Net income
AbbVie
Merck
See the numbers
Free cash flow
AbbVie
Merck
See the numbers
Who pays each company
AbbVie
- Customers in the US · 76.2% of revenue76.2% of FY2025 revenue ($46.6 billion). Three wholesalers handled substantially all US drug sales. Shares here are by location, because AbbVie does not report revenue by final payer.
- Customers outside the US · 23.8% of revenue23.8% of FY2025 revenue ($14.6 billion), sold mainly to wholesalers and through distributors.
Merck
- Customers in the US · 56.2% of revenue56.2% of FY2025 sales ($36.5 billion). Most US sales go through wholesalers. Shares here are by location, because Merck does not report sales by customer or final payer.
- Europe, Middle East and Africa · 22.4% of revenue22.4% of FY2025 sales ($14.6 billion).
- Asia Pacific, including Japan and China · 11.7% of revenue11.7% of FY2025 sales: Japan $2.7 billion, China $1.9 billion and the rest of Asia Pacific $3.0 billion. China fell from $6.8 billion in FY2023.
- Latin America · 5.2% of revenue5.2% of FY2025 sales ($3.4 billion).
- Other · 4.4% of revenue4.4% of FY2025 sales ($2.9 billion), the remainder Merck does not assign to these regions.
Revenue by segment
AbbVie
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Immunology | $30.4B | 49.7% |
| Neuroscience | $10.8B | 17.6% |
| Oncology | $6.7B | 10.9% |
| Aesthetics | $4.9B | 7.9% |
| Other key products | $3.7B | 6.1% |
| Eye care | $2.1B | 3.4% |
| All other | $2.6B | 4.3% |
Merck
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Pharmaceutical | $58.1B | 89.4% |
| Animal Health | $6.4B | 9.8% |
| Other | $515M | 0.8% |
Debt and cash
AbbVie
- Debt
- $80.9B
- Cash and investments
- $10.8B
On Sep 30, 2026.
At Sep 30, 2026 AbbVie's debt exceeded its cash by $70.1 billion, up from $62.3 billion at Dec 31, 2025. That is about 2.4 times EBITDA over the last four quarters (Cityfort calculation from the Q3 FY2026 10-Q and the Q4 FY2025 to Q3 FY2026 earnings releases).
Merck
- Debt
- $53.8B
- Cash and investments
- $9.6B
On Sep 30, 2026.
At Sep 30, 2026 Merck's debt exceeded its cash by $44.2 billion, up from $34.8 billion at Dec 31, 2025. That is about 2.4 times operating cash flow over the last four quarters (Cityfort calculation from the FY2025 10-K, Q3 FY2025 10-Q and Q3 FY2026 10-Q).
Sources: AbbVie S4, S1, S2, S3, S20, S21, S7, S8, S9, S10 · Merck S6, S1, S4, S9, S26, S27
Who owns each company
AbbVie
- One class of shares.
- Officers and directors as a group: 0.1% of shares (as of Mar 6, 2026).
- BlackRock, Inc.: 8.1% (as of Jan 25, 2024).
- Vanguard Capital Management: 7.5% (as of Apr 29, 2026).
- The Vanguard Group: 0.0% (as of Mar 26, 2026).
Merck
- One class of shares.
- Officers and directors as a group: 0.2% of shares (as of Feb 28, 2026).
- BlackRock, Inc.: 8.2% (as of Jan 26, 2024).
- Vanguard Capital Management: 7.5% (as of Apr 30, 2026).
- The Vanguard Group: 0.0% (as of Mar 27, 2026).
Sources: AbbVie S15, S4, S16, S17, S26 · Merck S22, S6, S23, S24
Risks only one page tracks
Risks whose type the other company's page does not list. Both pages track risks of these types: customer or supplier concentration, competition, pricing, debt, execution, legal cases. Every risk is on each company's page.
AbbVie
- Charges that rise with Skyrizi forecasts (other)AbbVie owes future payments mainly tied to Skyrizi sales, valued at $27.3 billion at Sep 30, 2026. Higher sales estimates raise this value, and the increase is a non-cash charge: $6.5 billion in FY2025.
Merck
- Gardasil sales in China and the US (demand)China sales fell from $6.8 billion in FY2023 to $1.9 billion in FY2025 after Gardasil shipments there were suspended. Merck expects a 2026 US public-sector purchasing benefit to largely unwind in 2027.
Key facts
- How does AbbVie make money compared with Merck?
- AbbVie's revenue by segment in FY2025: Immunology 49.7%, Neuroscience 17.6%, Oncology 10.9%, Aesthetics 7.9%, Other key products 6.1%, and 2 more. Merck's revenue by segment in FY2025: Pharmaceutical 89.4%, Animal Health 9.8%, Other 0.8%.
- Which is bigger by revenue, AbbVie or Merck?
- AbbVie reported $61.2B of revenue in FY2025, and Merck reported $65.0B in FY2025.
- How much net income did AbbVie and Merck report?
- AbbVie reported net income of $4.2B in FY2025, and Merck reported $18.3B in FY2025.
- How much of every $100 did AbbVie and Merck keep as net income?
- AbbVie kept $6.9 of every $100 that came in during FY2025, and Merck kept $28.1 in FY2025 (Cityfort calculation from each company's annual report).
- How much debt and cash do AbbVie and Merck have?
- AbbVie had $80.9B of debt and $10.8B of cash and investments on Sep 30, 2026. Merck had $53.8B of debt and $9.6B of cash and investments on Sep 30, 2026.
- When do AbbVie's and Merck's fiscal years end?
- AbbVie: December 31. Merck: December 31.
Sources: AbbVie S2, S1, S10, S4, S3, S20, S21, S7, S8, S9 · Merck S3, S1, S6, S4, S9, S26, S27
Built from each company's page. AbbVie updated Nov 6, 2026; Merck updated Nov 6, 2026.
Sources
AbbVie
- S1Form 10-K for fiscal year 2025 (ended Dec 31, 2025), AbbVie Inc. (SEC EDGAR), Feb 20, 2026
- S2Form 10-K for fiscal year 2023, AbbVie Inc. (SEC EDGAR), Feb 20, 2024
- S3Form 10-K for fiscal year 2022, AbbVie Inc. (SEC EDGAR), Feb 17, 2023
- S4Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026), AbbVie Inc. (SEC EDGAR), Nov 3, 2026
- S7Q3 2026 earnings release (Form 8-K Exhibit 99.1), AbbVie Inc. (SEC EDGAR), Oct 30, 2026
- S8Q2 2026 earnings release (Form 8-K Exhibit 99.1), AbbVie Inc. (SEC EDGAR), Jul 31, 2026
- S9Q1 2026 earnings release (Form 8-K Exhibit 99.1), AbbVie Inc. (SEC EDGAR), Apr 29, 2026
- S10Q4 and full-year 2025 earnings release (Form 8-K Exhibit 99.1), AbbVie Inc. (SEC EDGAR), Feb 4, 2026
- S152026 proxy statement (DEF 14A) for the May 8, 2026 annual meeting, AbbVie Inc. (SEC EDGAR), Mar 23, 2026
- S16Schedule 13G/A, The Vanguard Group, event Mar 13, 2026, The Vanguard Group (SEC EDGAR), Mar 26, 2026
- S17Schedule 13G, Vanguard Capital Management, event Mar 31, 2026, Vanguard Capital Management (SEC EDGAR), Apr 29, 2026
- S20Form 8-K (Item 8.01) filed Mar 4, 2026: $8.0 billion senior notes offering completed, AbbVie Inc. (SEC EDGAR), Mar 4, 2026
- S21Form 8-K (Item 8.01) filed Aug 18, 2026: $10.0 billion senior notes offering completed, AbbVie Inc. (SEC EDGAR), Aug 18, 2026
- S26SEC EDGAR submissions index for AbbVie Inc. (CIK 0001551152), SEC EDGAR, Nov 6, 2026
Merck
- S1Form 10-K for fiscal year 2025 (ended Dec 31, 2025), Merck & Co., Inc. (SEC EDGAR), Feb 24, 2026
- S3Form 10-K for fiscal year 2023, Merck & Co., Inc. (SEC EDGAR), Feb 26, 2024
- S4Form 10-K for fiscal year 2022, Merck & Co., Inc. (SEC EDGAR), Feb 24, 2023
- S6Form 10-Q for Q3 FY2026 (ended Sep 30, 2026), Merck & Co., Inc. (SEC EDGAR), Nov 4, 2026
- S9Form 10-Q for Q3 FY2025 (ended Sep 30, 2025), Merck & Co., Inc. (SEC EDGAR), Nov 5, 2025
- S12Earnings release, Q3 FY2026 (8-K Ex. 99.1), Merck & Co., Inc. (SEC EDGAR), Oct 29, 2026
- S22Proxy statement (DEF 14A) for the 2026 annual meeting, Merck & Co., Inc. (SEC EDGAR), Apr 8, 2026
- S23Schedule 13G, Vanguard Capital Management, event Mar 31, 2026, Vanguard Capital Management (SEC EDGAR), Apr 30, 2026
- S24Schedule 13G/A, The Vanguard Group, event Mar 13, 2026, The Vanguard Group (SEC EDGAR), Mar 27, 2026
- S26Pricing term sheet (FWP) for $6.0 billion senior notes, May 18, 2026, Merck & Co., Inc. (SEC EDGAR), May 19, 2026
- S27Form 8-K Item 8.01, senior notes offering closed May 22, 2026, Merck & Co., Inc. (SEC EDGAR), May 22, 2026
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