Germany's Merck KGaA Raises Outlook as Lab Tools, Chip Demand Lift Results — Update

By Adria Calatayud

Germany's Merck KGaA raised its full-year guidance for the second quarter in a row, after demand for lab tools and for chip-making materials lifted its results last quarter.

The company on Thursday increased its expectations for 2026 sales and underlying earnings for the group as a whole, as well as for each of its three divisions--life-sciences, healthcare and electronics. It said continued demand for lab equipment and services, rare-disease drugs and materials drove its performance in the second quarter.

Merck said it now expects net sales for the full year to range from 21 billion to 21.8 billion euros ($24.26 billion-$25.19 billion), with organic growth of 1% to 3%. It had previously forecast sale to be flat or grow up to 3%, resulting in revenue of 20.4 billion to 21.4 billion euros.

The company anticipates earnings before interest, taxes, depreciation and amortization excluding one-time items to be between 5.9 billion and 6.3 billion euros, with growth of up to 3%. This compares with its previous guidance of 5.7 billion to 6.1 billion euros, with an organic performance ranging from a 2% fall to a 2% rise.

Merck, which already lifted its full-year outlook alongside first-quarter results, said its new forecast reflected abating foreign-exchange headwinds and expectations of stronger demand in the life-science and electronics markets, together with resilience in its healthcare operations.

"Our second-quarter performance confirms continued momentum from important growth drivers across all the industries we serve," Chief Executive Kai Beckmann said.

With Beckmann weeks into the role, the company in June struck its biggest acquisition deal in more than a decade, the $11 billion purchase of U.S. life-sciences tools supplier Bio-Techne, in a bid to bolster its lab-equipment business.

The company reported second-quarter net sales of 5.34 billion euros, up 4.1% organically, in line with consensus expectations compiled by Vara Research.

Organic growth was driven by the group's electronics and life-sciences segments, which posted increases of 12% and 8% and offset a decline in its healthcare segment mainly due to generic competition for its Mavenclad multiple-sclerosis drug.

Ebitda before one-time items grew 9.3% organically to 1.6 billion euros, ahead of consensus forecasts of 1.53 billion euros.

Merck's net profit dropped to 490 million euros from 655 million euros due to higher research-and-development expenses and lower income from licensing deals.

Shares were up 1.4% in European midday trading. The stock is up 20% in the year to date.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

August 06, 2026 07:38 ET (11:38 GMT)