Merck KGaA raises guidance again as CDMO exit hits reported profit

Merck KGaA raised its full year 2026 guidance for the third time on November 12, to net sales of 21.5 to 21.9 billion euros and EBITDA pre of 6.2 to 6.4 billion euros, on third quarter sales up 5.1 percent organically to 5.6 billion euros, while reported profit absorbed an impairment tied to its CDMO divestment.

Why it matters: The raise confirms the life science tools recovery is real and broad, and the writedown quantifies the cost of exiting contract manufacturing just as the company spends 9.9 billion euros buying Bio-Techne to double down on those same tools markets.

Data as of Third quarter 2026 results released November 12, 2026. EBITDA pre and EPS pre are the company's adjusted measures. The impairment amount tied to the CDMO held for sale classification was not stated in the release text read for this story; the net profit comparison is Grafa's, citing analyst coverage of the print.

Merck KGaA reported third quarter results on November 12 and raised its full year guidance for the third time in 2026. Group net sales rose to 5.6 billion euros from 5.3 billion euros a year earlier, up 5.1 percent organically with a further 1.5 percent foreign exchange tailwind. EBITDA pre was flat at 1.7 billion euros, up 0.4 percent organically against a year earlier quarter flattered by two one time gains, and earnings per share pre held at 2.32 euros. Free cash flow rose 22.7 percent to 1.3 billion euros.

The new guidance expects 2026 net sales of 21.5 to 21.9 billion euros and EBITDA pre of 6.2 to 6.4 billion euros, up from 5.9 to 6.3 billion euros previously on Grafa’s account, with EPS pre of 8.30 to 8.70 euros and implied organic sales growth of 3 to 4 percent. The raise folds in one December month of Bio-Techne, the United States tools maker Merck agreed to buy in June for an enterprise value of about 11.3 billion dollars (9.9 billion euros).

Life Science did the work. Segment sales reached 2.4 billion euros, up 6.1 percent organically and 7.3 percent excluding tariff refunds to customers, with EBITDA pre of 736 million euros up 8.7 percent organically, led by Process Solutions at 10.5 percent organic growth. Healthcare sales of 2.3 billion euros grew 0.9 percent organically: rare diseases rose 41.5 percent, while Mavenclad fell 25.1 percent organically on United States generic competition, and the guidance now assumes no United States Mavenclad sales from November 2026.

The blemish sits below the adjusted line. Reported net profit fell about half, to 450 million euros, on analyst comparisons carried by Grafa, as reported earnings absorbed an impairment related to the planned sale of the CDMO business. That divestment, signed November 3, sends five United States sites, in Carlsbad, Madison and Verona, St. Louis bioconjugation operations and Indianapolis, to Lonza for a mid triple digit million euro amount, closing expected in mid 2027. The October agreement to acquire Silence Therapeutics and its Phase 3 ready siRNA divesiran, closing expected in the first quarter of 2027, completes the same portfolio rotation: out of contract manufacturing, into tools and rare disease.

Merck KGaA raises guidance again as CDMO exit hits reported profit

Sources