Germany's Merck KGaA has raised its full-year guidance for the second consecutive quarter, buoyed by robust demand for laboratory tools and semiconductor materials in the previous quarter. The company upgraded its 2026 sales and underlying earnings outlook for the entire group as well as its three core divisions: life sciences, healthcare, and electronics on Thursday.

Merck cited sustained growth in laboratory equipment and services, rare disease treatments, and materials as key drivers of its second-quarter performance. The company now projects full-year net sales between €21 billion and €21.8 billion (equivalent to $24.26 billion to $25.19 billion), representing organic growth of 1% to 3%. This is an improvement from its prior forecast, which anticipated flat sales or growth of up to 3%, corresponding to revenue of €20.4 billion to €21.4 billion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted for one-time items, are now expected to be between €5.9 billion and €6.3 billion, with growth of up to 3%. This compares to the earlier forecast of €5.7 billion to €6.1 billion, where organic performance was expected to range from a 2% decline to 2% growth. The company had already raised its full-year outlook after reporting first-quarter results.

Merck said the updated guidance reflects a weakening of foreign exchange headwinds, stronger demand in the life sciences and electronics sectors, and continued resilience in its healthcare business. "Our second-quarter performance confirms the ongoing momentum of the key growth drivers in all the industries we serve," said Chief Executive Officer Beckmann, who took the helm just weeks ago. Under his leadership, the company closed its largest acquisition in over a decade in June, purchasing U.S. life sciences tools supplier Bio-Techne for $11 billion to bolster its laboratory equipment business.

For the second quarter, Merck reported net sales of €5.34 billion, representing organic growth of 4.1%, in line with market consensus compiled by Vara Research. Organic growth was driven by the electronics and life sciences divisions, which posted increases of 12% and 8%, respectively. This offset a decline in the healthcare segment, which was impacted by generic competition for Mavenclad, a multiple sclerosis drug.

Adjusted EBITDA before one-time items grew organically by 9.3% to €1.6 billion, surpassing market expectations of €1.53 billion. Net profit fell to €490 million from €655 million, primarily due to higher research and development spending and a decrease in revenue from licensing deals. Merck shares rose 1.4% in afternoon trading in Europe, bringing their year-to-date gain to 20%.