Merck Raises 2026 Profit Guidance Amid Strong Demand and AI-Driven Growth

Merck KGaA, a Germany-based diversified group, has raised its core profit guidance for 2026. The company expects adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of between 5.9 billion euros and 6.3 billion euros in 2026, up from previous guidance of between 5.7 billion euros and 6.1 billion euros.

This increase is based on robust operating performance and easing foreign exchange headwinds, according to CEO Kai Beckmann. He also mentioned that growing AI-related spending is driving the company's semiconductor business, particularly in the area of advanced microchips used for AI applications and data centres.

Merk's quarterly adjusted EBITDA rose 9.4% to 1.60 billion euros, exceeding analysts' average estimate of 1.53 billion euros. The company's shares have gained almost 20% since the start of the year and were up around 1% as of 0936 GMT.

Merck recently acquired Bio-Techne in a deal worth $11.3 billion, its largest transaction in more than a decade. This acquisition is expected to add additional differentiated capabilities across research, bioprocessing, and advanced therapeutics.