Merck Boosts Profit Guidance Amid Strong Demand for AI-Driven Materials

Merck KGaA, a German diversified family-controlled group, has raised its 2026 core profit guidance. The company expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to range between €5.9 billion and €6.3 billion ($6.8 billion-$7.3 billion). This is up from the previous guidance of between €5.7 billion and €6.1 billion.

Merck's quarterly adjusted EBITDA rose 9.4% to €1.60 billion, exceeding analysts' average estimate of €1.53 billion. The company's semiconductor business is driven by growing AI-related spending, with CEO Kai Beckmann stating that demand remains strong and customers continue to report capacity bottlenecks for AI-related technologies.

Merck raised its 2026 guidance due to robust operating performance and easing foreign exchange headwinds. The company has also seen a significant boost in its Life Science unit, which makes drug research and manufacturing tools, following an $11.3 billion deal to buy Bio-Techne in June. This is Merck's largest transaction in over a decade.