“We assume approximately 2.48 billion shares outstanding.”

In context

“4. Now turning to our 2026 non-GAAP guidance. We expect revenue to be between $65.5 and $67 billion, representing growth of 1% to 3%, including a positive impact from foreign exchange of approximately one percentage point using mid-January rates. Our gross margin assumption is approximately 82%. Operating expenses are assumed to be between $35.9 billion and $36.9 billion, which includes a one-time charge of approximately $9 billion related to the acquisition of Sidera. As a reminder, our guidance does not assume additional significant potential business development transactions. Other expense of approximately $1.3 billion includes financing costs for Sidera and Verona. We assume a full-year tax rate between 23.5% and 24.5%, which reflects the non-tax-deductible one-time charge for Sidera. We assume approximately 2.48 billion shares outstanding. Taken together, we expect EPS of $5 to $5.15, with a midpoint of $5.08, including a positive impact from foreign exchange of approximately $0.10 using mid-January rates. Excluding approximately $3.65 per share related to the upfront charge for the acquisition of Sidera, as well as $0.03 per share of ongoing costs to advance MK1406 and finance the transaction, our midpoint would be $9.03. As you consider your models, there are a few items to keep in mind. We expect to deliver growth in 2026 driven by increasing contributions from our new launches, as well as continued strength in oncology and animal health. Despite a headwind of approximately $2.5 billion from generic competition, IRA price setting, and the restructured agreement for Koselugo. Generic competition primarily impacts the Janu”