Merck Raises 2026 Guidance Amid Strong Semiconductor Demand

Merck KGaA, a Germany-based diversified group, raised its 2026 core profit guidance and beat quarterly estimates. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 9.4% to €1.60 billion in the quarter, exceeding analysts' average estimate of €1.53 billion.

The increase is largely due to strong demand for semiconductor materials and drug production supplies. CEO Kai Beckmann noted that growing AI-related spending is driving the company's semiconductor business, with customers continuing to report capacity bottlenecks for AI-related technologies.

Merck raised its 2026 guidance from €5.7 billion to €6.1 billion in EBITDA to between €5.9 billion and €6.3 billion. The company also announced a deal to acquire Bio-Techne, a major transaction worth $11.3 billion, to boost its Life Science unit.