By Adria Calatayud

Germany's Merck KGaA reported higher earnings and sales for the third quarter as the company benefited from demand for semiconductor materials and drug-making tools and services, sending shares higher.

The Darmstadt, Germany-based Merck conglomerate--with operations spanning lab products, prescription medicines and chemical products--said Thursday that its results reflected solid organic top-line growth across its three businesses, and narrowed its outlook for the full year.

Shares rose as much as 8.6%, before pulling back somewhat, recouping some of their losses earlier in the year.

The company's life-science segment--its largest by sales--benefited from strong demand from the pharma industry, continuing a recovery experienced in recent quarters. The business was hit by a postpandemic sales slump as customers worked to clear inventories built up during Covid-19 times.

Elsewhere, Merck said AI-related demand lifted sales of semiconductor materials, aiding its electronics unit. The group's healthcare business got a boost from rare-disease treatments acquired through its deal for SpringWorks Therapeutics and continued sales for cardiovascular, metabolism and endocrinology, the company added.

Overall, Merck said it made an after-tax profit of 898 million euros ($1.04 billion) for the third quarter compared with 812 million euros for the year-earlier period.

Excluding exceptional items, the company's earnings before interest, taxes, depreciation and amortization--its preferred profit metric--were 1.67 billion euros, up 3.1% on year and up 8.8% organically.

Net sales grew 5.2% organically to 5.32 billion euros.

Analysts had forecast third-quarter Ebitda before exceptional items of 1.56 billion euros on net sales of 5.23 billion euros, according to consensus estimates compiled by Vara Research.

For the full year, Merck confirmed its outlook, narrowing its guidance ranges but leaving the midpoints unchanged. It now expects organic sales growth of about 3% in sales and of 5% to 7% in Ebitda before exceptional items. This compares with prior forecasts of organic sales growth of 2% to 5% and of Ebitda before exceptional items increasing by 4% to 8% organically.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

November 13, 2025 08:25 ET (13:25 GMT)

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