German science and technology major Merck has raised its full-year 2026 financial guidance after delivering 5.1% organic sales growth in the third quarter, powered by strong demand for biomanufacturing solutions, rare disease treatments and semiconductor materials used in AI applications.

 

The company reported third-quarter net sales of €5.6 billion, up from €5.3 billion in the year-ago period. EBITDA pre rose marginally by 0.4% organically to €1.7 billion, reflecting a high comparison base in the third quarter of 2025, which had benefited from one-time effects.

 

Merck now expects full-year 2026 net sales of €21.5 billion to €21.9 billion, with EBITDA pre projected at €6.2 billion to €6.4 billion. The revised outlook reflects stronger underlying business performance and more favourable foreign exchange movements.

 

“Our third-quarter performance underscores the strength of our integrated business model with our strong position in attractive growth markets, especially biomanufacturing, discovery and development across the life sciences value chain, semiconductor manufacturing that supports AI and advanced nodes, as well as targeted specialty and rare diseases,” said Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck.

 

“We delivered growth in the quarter while continuing to advance our mid- to long-term strategic agenda through innovation and sharpening our portfolio. Our upgraded full-year guidance reflects our confidence that Merck will continue to deliver solid performance in 2026.”

 

Merck's Electronics business emerged as a major growth engine, with organic sales rising 13.3% to €948 million in the third quarter. EBITDA pre climbed 18.4% to €279 million, driven by higher volumes, a favourable product mix and tighter cost management.

 

The strongest momentum came from Semiconductor Solutions, which recorded 18.7% organic growth. Demand for advanced materials used in memory and logic chips, particularly those powering AI applications and data centres, drove the performance.

 

As chip architectures become increasingly complex, manufacturers require more sophisticated materials and tighter process controls, strengthening demand for Merck's specialty materials and workflow solutions.

 

The company is also expanding its manufacturing and research footprint. It recently opened a research and development facility in Sheboygan, Wisconsin, as part of a US$200 million multi-year investment. In South Korea, Merck inaugurated a new production line for molybdenum-based materials in Eumseong, with commercial production expected to begin after customer qualification in 2027.

 

Life Science delivered organic sales growth of 6.1% to €2.4 billion, while EBITDA pre increased 8.7% organically to €736 million.

 

Process Solutions remained the standout performer, posting 10.5% organic growth on the back of strong demand for downstream processing, single-use technologies and upstream manufacturing materials.

 

Discovery Solutions grew 1.7%, while Advanced Solutions recorded 4.3% organic growth.

 

However, Merck indicated that order book trends point to a softer fourth quarter for Process Solutions, even as underlying customer demand and capacity expansion remain strong.

 

The company is stepping up investments in innovation, digitalisation and artificial intelligence. Recent developments include advances in its MAST automated sampling system, new real-time trace element prediction capabilities for its mConfig platform and the launch of SYNTHIA Agentic AI, which gives scientists access to retrosynthesis, reagent and safety information through compatible AI environments.

 

Merck is also reshaping its Life Science portfolio through the planned divestment of its contract development and manufacturing organisation (CDMO) business to Swiss-based Lonza. The transaction is expected to close in mid-2027 and will allow Merck to focus investments on technologies and capabilities aligned with its scientific strengths.

 

Healthcare recorded net sales of €2.3 billion, with organic growth of 0.9%. EBITDA pre remained stable at €819 million.

 

Rare Diseases was the clear standout, registering 41.5% organic sales growth and reinforcing its position as a key strategic growth pillar for Merck.

 

Gomekli/Ezmekly led the expansion, with organic sales surging 80.4%. Ogsiveo® also delivered strong momentum, growing 24.5%, while Pimjetmi (pimicotinib) contributed to sales following its approval in China in December 2025.

 

In a further boost to its rare disease portfolio, the US Food and Drug Administration approved Pimjetmi on November 10 as a once-daily oral treatment for adults with symptomatic tenosynovial giant cell tumour (TGCT) where surgery could result in worsening functional limitations or severe morbidity.

 

Merck also reported encouraging two-year follow-up data from the Phase III MANEUVER study, showing sustained tumour control and improvements in symptoms and joint function among TGCT patients treated with pimicotinib.

 

Cardiometabolic sales increased 5.2% organically, supported by growth in Concor, Euthyrox and Glucophage. Fertility & Endocrinology grew 3.6%, with Pergoveris and Saizen delivering strong performances.

 

However, Specialty Care remained under pressure, with organic sales declining 10.2%. While Erbitux grew 4.3%, Mavenclad sales fell 25.1%, largely due to generic competition in the United States.

 

Merck is accelerating its portfolio transformation through acquisitions and divestments aimed at strengthening its position in high-growth markets.

 

In June 2026, the company entered into a definitive agreement to acquire US-based Bio-Techne Corporation for an enterprise value of approximately US$11.3 billion (€9.9 billion). The deal is expected to expand Merck's life science tools portfolio and strengthen its capabilities across biological discovery, therapeutic development and manufacturing.

 

In October, Merck announced a definitive agreement to acquire UK-based Silence Therapeutics. The proposed acquisition will bring divesiran, a Phase III-ready investigational siRNA therapy for phlebotomy-dependent polycythaemia vera, into its pipeline. The transaction is expected to close in the first quarter of 2027.

 

Together with the planned CDMO divestment, these moves underline Merck's strategy of redirecting its portfolio towards specialised healthcare, rare diseases, advanced biomanufacturing and semiconductor technologies.

 

Beyond revenue growth, Merck reported a significant improvement in cash generation. Free cash flow rose 22.7% year-on-year to €1.3 billion in the third quarter, compared with €1.1 billion in the corresponding period last year.

 

Net financial debt fell 10.3% from the beginning of 2026 to €7.7 billion at the end of September, supporting the company's deleveraging efforts.

 

However, reported profitability remained under pressure. Operating profit declined 46.5% to €653 million, while profit after tax nearly halved to €450 million. Earnings per share fell 49.8% to €1.04. Adjusted earnings per share (EPS pre), however, remained unchanged at €2.32.

 

Asia-Pacific continued to be Merck's largest market, accounting for 34.8% of group sales and recording 12.1% growth. Europe contributed 29.1% of sales, while North America accounted for 24.5%.

 

With stronger performance in Life Science, accelerating demand for semiconductor materials and rapid expansion in rare diseases, Merck is entering the final stretch of 2026 with a higher financial outlook and a sharpened focus on its next phase of growth.