Merck upgrades its full-year guidance and expects revenue of up to €21.8 billion

“Our second-quarter performance confirms continued momentum from important growth drivers across all the industries we serve. Based on a robust underlying business, we continued to advance our mid- to long-term growth agenda as announced, including the proposed acquisition of Bio-Techne Corporation, USA. Following regulatory approvals and the fulfilment of closing conditions, this strategic acquisition will further strengthen our leadership in high-growth life science markets and support our ambition to provide integrated workflow solutions across the scientific value chain. Going forward, we remain focused on increasing speed, flexibility and scalability across the company while delivering profitable growth and sustainable value creation,” said Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck.

Bio-Techne acquisition to strengthen Life Science leadership

During the second quarter, Merck announced an agreement to acquire Bio-Techne Corporation, USA (“Bio-Techne”). Upon closing, which is expected to take place by late 2026 or early 2027, the planned acquisition will deliver on the company’s mid- to long-term strategic agenda by expanding its presence in high-growth life science markets, strengthening its competitive position across the entire life science value chain and strengthening its focus on integrated workflow solutions.

Second-quarter results

In the second quarter of 2026, Merck generated Group net sales of € 5.4 billion (Q2 2025: € 5.3 billion), representing organic sales growth of 4.1%. The reported sales growth of 3.4% included foreign exchange effects of –‍1.1%. EBITDA pre increased to € 1.6 billion (Q2 2025: € 1.5 billion), with organic growth of 9.3% amid foreign exchange effects of –‍0.5%. This corresponds to an EBITDA pre margin of 29.4%, a 1.6 percentage point increase compared with the year-earlier quarter. Earnings per share pre increased to € 2.16 (Q2 2025: € 2.02).

Foreign exchange effects had a smaller impact on Group sales and earnings in the second quarter compared with the significant headwinds experienced over the past year. The U.S. dollar remained the primary driver, while several key Asian currencies continued to have a slightly negative effect on reported performance.

In an environment of continued geopolitical volatility and ongoing global conflicts, Merck benefits from its longstanding region-for-region approach built on close customer relationships and deep local market expertise. The company delivered growth across all regions in the second quarter, with Asia-Pacific leading with 8.5% organic sales growth. Overall, Asia-Pacific accounted for 33.5% of net sales, followed by Europe with 30.6% and North America with 25.5%.

Life Science delivers strong growth and advances innovation-led strategy

The Life Science business delivered another strong quarter, with all three business units contributing to organic growth and broad-based momentum across regions. The performance reflects strong commercial execution under the new go-to-market model and contributions from new products. The proposed acquisition of Bio-Techne would add additional differentiated capabilities across research, bioprocessing and advanced therapeutics, strengthening Life Science’s offering in next-generation biology and further advancing its innovation-led growth strategy.

Net sales of Life Science increased by 6.4% to € 2.4 billion. Organic growth of 8.0% more than offset foreign exchange and minor portfolio effects. EBITDA pre was € 700 million, an organic increase of 8.2% year-on-year. The company increased R&D expenses and startup costs associated with new manufacturing sites, for example in Blarney, Ireland, and in Daejeon, Korea, to support future growth and advance its region-for-region strategy.

Process Solutions, which offers solutions for every step of pharmaceutical manufacturing, remained the main growth driver in the second quarter. Net sales grew organically by 14.7%, supported by strong momentum in downstream processing and single-use solutions. Performance was broad-based across regions, including China. Growth was driven by strong underlying demand and customer capacity expansion, further supported by temporarily higher purchasing activity of customers in Asia-Pacific.

Discovery Solutions, which supports research and early-stage discovery across biology, chemistry and analytical workflows, delivered organic sales growth of 2.1%. Growth spanned regions and markets, with early benefits from the go-to-market model becoming visible.

Advanced Solutions recorded solid organic sales growth of 4.4%. The business unit delivers tailored products and services that help customers address unique needs in high-touch and regulated environments. Both products and services contributed, with growth across key regions.

The Life Science business continued to expand its investment in R&D, with new products and differentiated capabilities making a growing contribution to performance. Examples of such investments during the second quarter include the launch of Viresolve^® Pro-S Solution. The virus filtration solution is designed to be more sustainable and improve throughput for complex and high-concentration monoclonal antibodies. Merck also introduced its first bio-based high-performance liquid chromatography (HPLC) solvents; these are produced from renewable feedstock and emit around 26% less CO₂ equivalents on average without compromising performance.

Healthcare with strong performance in Rare Diseases

As of the second quarter of 2026, Healthcare operates across Rare Diseases, Fertility & Endocrinology, Cardiometabolic, and Specialty Care. This organizational change reflects the strategic ambition of Merck to become a leading global specialty innovator and aligns the company’s product offering with the required commercial capabilities.

Net sales in Healthcare increased to € 2.2 billion, a reported growth of 2.4%. Portfolio effects of 5.4% from the acquisition of SpringWorks Therapeutics Inc., USA, more than offset the organic sales decline of ‍–‍3.4%. EBITDA pre declined by 4.6% to € 747 million, reflecting an organic decline of –‍5.7% amid higher research and development costs.

Rare Diseases, Merck's new strategic pillar in Healthcare, contributed € 115 million to net sales. Net sales of both Ogsiveo^®, which treats progressing desmoid tumors, and Gomekli^®, approved for adults and children aged 2 years and older with neurofibromatosis type 1 who have plexiform neurofibromas (PN), are reflected in the franchise’s portfolio effect of 5.4%. In addition, Pimicotinib^® generated sales in the low single-digit million-euro range in the second quarter of 2026. China approved the treatment for tenosynovial giant cell tumor (TGCT) in December 2025.

Fertility & Endocrinology saw a ‍–‍0.9% organic decline in net sales. Pergoveris^®, indicated for the stimulation of follicular development in women, grew organically by 14.1%. This was mainly driven by the Europe and Asia-Pacific regions. Sales of Gonal-f^®, a follicle-stimulating hormone treatment, were down organically by‍ –‍2.7%.

Net sales in Cardiometabolic grew 1.2% organically. The thyroid medicine Euthyrox^® was the main growth driver with sales increasing 7.8% organically, especially in Asia-Pacific and Europe.

Specialty Care saw net sales decline by 5.8% organically. Erbitux^® grew organically by 4.9% despite ongoing competition in China in particular. The treatment for metastatic colorectal cancer and for cancer of the head and neck saw increased demand in Europe and Latin America. The label extension by the European Commission in June positively affected volumes. Net sales of Mavenclad^® declined organically 10.2% year-on-year, amid generic competition in the United States.

In July 2026, Merck announced that the U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy designation to enpatoran for the treatment of lupus with active cutaneous manifestations. The company also initiated the Phase 3 PROCEADE^®-CRC-03 trial evaluating precemtabart tocentecan (Precem‑TcT), a potential first‑in‑class investigational anti‑CEACAM5 antibody‑drug conjugate (ADC) for the treatment of metastatic colorectal cancer (mCRC). In June 2026, Merck announced a strategic research-stage collaboration with Saturnus Bio, a Versant Ventures-founded biotech company, aimed at establishing a foundational portfolio in the promising field of rare genetic cardiomyopathies. The partnership aligns with the company’s broader rare disease strategy to address significant unmet medical needs in rare populations through targeted treatments.

Electronics: AI demand drives accelerated organic growth in Semiconductor Solutions

Strong customer demand in the semiconductor industry continued to strengthen Electronics’ business of providing materials-enabled solutions. AI-related applications drove demand for advanced nodes: the latest semiconductor manufacturing processes that enable smaller feature sizes and the most powerful chips.

Despite strong organic growth of 11.7%, reported net sales declined to € 871 million. This was due to the continued portfolio effect of –‍10.6% from the divestment of the Surface Solutions business unit and negative foreign exchange effects of ‍–‍2.9%. EBITDA pre increased organically by 87.5% to € 244 million. While a large share of this growth is attributable to one-time effects in the year-earlier quarter, higher net sales and efficient cost management also contributed substantially.

Semiconductor Solutions achieved strong organic growth of 17.3% in the second quarter. The result reflects the sustained expansion of the semiconductor industry in the first half of 2026. AI applications require increasingly complex chip architectures with higher material content per wafer and tighter process control at advanced nodes. Consequently, Electronics’ high-performance specialty materials and solutions have seen healthy demand.

Net sales in Optronics were roughly stable year-on-year. However, high prices for memory chips continued to weigh on end-customer demand for consumer electronics.

Merck addresses the key manufacturing processes for AI-enabling semiconductors. The company’s Electronics business is expanding beyond its established position in materials and delivery equipment for wafer processing by strengthening its capabilities in selected semiconductor manufacturing workflows critical to AI systems. These include Advanced Packaging and Metrology & Inspection (M&I). In May 2026, Merck opened a new € 20 million site in Saint-Ismier, France. This will expand the company’s capacity for M&I tools, enabling chip manufacturers to push forward in advanced packaging and heterogeneous integration for AI chips. By connecting complementary capabilities across materials, equipment, process expertise, and measurement, Electronics aims to help customers manufacture increasingly large and complex semiconductor systems for AI at scale.

Guidance for 2026

Based on the Group’s performance in the second quarter, easing foreign exchange headwinds and current market conditions, Merck has upgraded the target corridors for its full year 2026 guidance. The company now expects net sales between € 21.0 billion and € 21.8 billion and EBITDA pre between € 5.9 billion and € 6.3 billion. This adjustment primarily reflects assumptions of stronger momentum in Life Science – including minor headwinds from tariff refunds to customers – and Electronics, while Healthcare demonstrated resilience in a challenging environment. The guidance assumes no sales of Mavenclad^® in the United Sates from August 2026 (previous forecast: from May 2026) amid generic competition and furthermore excludes the potential commercialization of Pergoveris^® in the United States.

As a result, the implied organic growth corridor for Group net sales shifts to +1% to +3%. Organic EBITDA pre growth is now expected at 0% to +3%. Merck anticipates foreign exchange effects to impact net sales between –2% to 0%; for EBITDA pre, the range is –2% to 0%. This translates to an EPS pre between € 7.90 and € 8.60.