Shares of Merck & Co. were headed higher in early Thursday trading, after the drugmaker extended its long streak of quarterly earnings beats and held firm with its full-year outlook despite expected tariff costs.

Merck on Thursday said its first-quarter adjusted profit rose 7% as lower costs helped offset a 2% decline in sales, reflecting a January decision to pause shipments of its Gardasil vaccine to China due to a downturn in demand.