Merck KGaA Hikes Full-Year Profit Target to €6.3 Billion Amid Bioprocessing and AI Demand Surge

Merck KGaA delivered strong second-quarter results, exceeding internal expectations and prompting a boost to its full-year profit target. The German pharmaceuticals company reported €5.434 billion in net sales for Q2, beating consensus estimates and resulting in the upward revision of its fiscal 2026 guidance.

The Life Science segment was the standout performer, with organic sales climbing 8% year-over-year. Process Solutions within this division saw a surge of 15% organically, driven by healthy market demand and a new go-to-market model. CEO Jean-Charles Wirth attributed the growth to five key factors: robust market demand, the company's revamped approach to sales, temporary changes in purchasing patterns due to geopolitical tensions, exceptional equipment orders from China for new plants, and one-off integrated workflow projects.

The Electronics segment also reported impressive growth, with organic sales rising 11.7% year-over-year. Semiconductor Solutions within this division saw a remarkable 17% increase organically, fueled by advanced-node demand for logic and memory tied to data center build-outs and AI applications. CEO Ben Hein noted that the company is already benefiting from AI-driven growth, with prices for advanced memory chips expected to remain high until at least the second half of 2027.

However, the Healthcare segment lagged behind, with organic sales declining 3.4% year-over-year. Despite this, the division's EBITDA pre came in at €747 million, supported by a favorable mix and cost discipline. Management expressed confidence that the momentum in Life Science and Electronics will be sustained, even as they caution on second-half normalization and Mavenclad erosion.