Merck Raises 2026 Earnings Outlook for Third Time as Q3 Revenue Grows 5.8%
Key Facts
Merck raised its 2026 earnings guidance for the third time this year, supported by improved underlying performance, currency effects and the Bio-Techne acquisition, according to a Reuters report published on November 12. The company raised its full-year net sales forecast to a range of 21.5 to 21.9 billion euros, compared with a previous range of 21 to 21.8 billion euros. The announcement came with third-quarter results, as net sales rose 5.8% year over year to 5.6 billion euros. EBITDA increased 0.8% to 1.7 billion euros over the same period. The difference between the two rates reflects different growth measures: the company reported organic sales growth and currency effects in its statement, and separately detailed organic growth in EBITDA before special items.
Chief Executive Kai Beckmann said third-quarter performance "confirms the strength of our integrated business model and our strong position in attractive growth markets." Reuters identified bioprocessing, life science research and development, semiconductor manufacturing supporting AI applications, and rare diseases among the growth areas Beckmann cited. In semiconductors, demand for chipmaking materials linked to AI applications supports this part of the company's portfolio. This places the quarter's results among growth drivers spanning the life science and advanced materials businesses. Reuters attributed the guidance increase to underlying performance, currency effects and the new acquisition, alongside the markets the chief executive described as attractive.
The guidance increase came despite reported net profit falling by about 50% to 450 million euros in the third quarter, according to an Investing.com report. The report said the comparison was affected by a high base in the previous year, which included one-off gains related to the sale of vouchers and legislative changes in South America. This decline puts net profit on a different trajectory from the reported revenue growth and EBITDA increase for the period. In trading on November 12, shares of Germany's Merck rose 2.2% to 154.88 euros at the time the report was published. Investing.com linked the share move to the third-quarter results and the third increase in the annual guidance.
The background to the expansion of the life science business goes back to Merck's deal, announced in June, to buy Bio-Techne for 11.3 billion dollars. Reuters described the deal as the company's largest in more than a decade. The company said its 2026 guidance assumes an impact from the deal in December, while the actual closing date could differ. The acquisition is therefore included among the assumptions underpinning the new annual estimates, with the closing date remaining a factor in determining its actual impact during the year. The deal combines an expansion of the life science business with repeated increases in the group's forecasts, which Reuters also linked to improved underlying performance and currency effects.
Merck is scheduled to report fourth-quarter results on March 4, 2027. On the day before the results announcement, Moody’s affirmed the company's long-term credit rating at A3 with a stable outlook, according to Investing.com. EL7 data shows the November 11 close at 33.84 dollars for the MKKGY American depositary receipt and 147.19 dollars for the instrument with the MRK ticker; these prices do not represent the close of Germany's Merck shares in the session when the results were announced. In the November 12 session, the report said shares of Germany's Merck reached 154.88 euros after rising 2.2%. The new annual estimates and the fourth-quarter results date remain the next milestones in tracking the company's performance.