Merck KGaA raises 2026 guidance for third time on AI chip materials and rare-disease drugs

Guidance raised again

Merck KGaA, the Darmstadt-based DAX group, raised its 2026 forecasts on Thursday, 12 November, for the third time this year. It now expects full-year revenue of 21.5 to 21.9 billion euros, up from 21.0 to 21.8 billion. Adjusted EBITDA is now projected at 6.2 to 6.4 billion euros, against a previous range of 5.9 to 6.3 billion. Handelsblatt attributed the upgrade mainly to better operating performance and more favourable currency effects. RTE listed the same factors together with the acquisition of the US firm Bio-Techne.

Third-quarter results

In the three months to the end of September, organic revenue growth reached 5.1 percent, taking sales to just over 5.6 billion euros, according to Handelsblatt. Stern put sales at 5.63 billion euros, up almost six percent on the year, while RTE gave reported growth of 5.8 percent. Analysts had expected adjusted EBITDA of 1.6 billion euros. Handelsblatt described the result as level with the prior-year quarter, which had included positive one-off effects, whereas stern reported a slight rise to just over 1.68 billion euros. Either way, the figure beat the consensus.

Analyst expectation (Handelsblatt)1.6

Reported Q3 adjusted EBITDA (stern)1.68

Analyst expectation (Handelsblatt)

1.6 billion euros

Reported Q3 adjusted EBITDA (stern)

1.68 billion euros

Data from the article text

Growth drivers

Stern reported that the Life Science laboratory business again grew strongly, particularly with products and solutions for drug manufacturing. Demand for AI semiconductor materials in the Electronics business and medicines for rare diseases in the pharma division also gave momentum. Bloomberg attributed part of the strength to a slower-than-expected decline in sales of the multiple sclerosis drug Mavenclad. RTE described Merck's specialty materials and chemical solutions as used to produce advanced microchips for AI applications and data centres.

Bio-Techne deal and Irish operations

In June, Merck struck a deal to buy the US firm Bio-Techne for $11.3 billion, its biggest transaction in more than a decade, according to RTE. The deal boosted the Life Science unit, which makes tools for drug research and manufacturing. Merck employs over 3,000 people across seven sites in Ireland, including Tipperary, Cork, Meath, Louth, Carlow and Dublin.