Merck's (MRK) Q2 revenue is likely to be in line with consensus estimates as its Keytruda immunotherapy and Gardasil HPV vaccine sales are tracking at expected levels, RBC Capital Markets said in a Wednesday research report.

The brokerage said its revenue estimate for fiscal 2026 is higher than the company's guidance, implying room for a potential upward revision. The company is due to report Q2 results on Aug. 4.

Keytruda's US growth continues at a more moderate pace, as it nears peak penetration in key tumor types amid looming global pricing headwinds, while Gardasil growth should be stable from a year earlier excluding China, according to the note.

The brokerage said it reiterated its outperform rating on the stock and price target of $142 per share.

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