Merck Q2 Earnings Down 3%, Cuts Annual Targets Amid Currency Headwinds

Merck KGaA's Q2 adjusted operating profit fell 3% to €1.46bn, missing analyst expectations, due to negative currency effects. Revenue declined 2% to €5.25bn, but organic growth was 2%, driven by Life Science and Pharmaceuticals divisions. The company lowered its annual targets, expecting revenue of €20.5-21.7bn and adjusted operating profit of €5.9-6.3bn.

Merck KGaA (ETR:MRCG) reported its second-quarter 2025 results, with adjusted operating profit falling 3% to €1.46 billion, missing analyst expectations [1]. The German science and technology company attributed the decline to negative currency effects, particularly a weakening U.S. dollar against the euro. Revenue declined 2% to €5.25 billion, but organic growth was 2%, driven by the Life Science and Healthcare divisions.

The company's Life Science division, which includes pharmaceuticals, recorded a 3.7% organic increase in net sales to €2.3 billion. This growth was offset by a 0.4% decline in net sales due to negative foreign exchange effects. The Healthcare division, which includes blockbuster drugs like Mavenclad and Erbitux, grew 3.6% organically, despite a 1.6% decline in net sales due to currency impacts. The Electronics division, which includes semiconductor materials, also saw continued demand, growing 1.4% organically.

Merck KGaA lowered its annual targets for 2025, expecting revenue of €20.5 to €21.7 billion and adjusted operating profit of €5.9 to €6.3 billion. The company also completed the acquisition of SpringWorks Therapeutics for €3.4 billion, expanding its rare tumor pipeline. On July 18, 2025, the European Commission conditionally approved Ezmekly, developed by SpringWorks, for treating inoperable plexiform neurofibromas [2].

References:
[1] https://www.investing.com/news/earnings/merck-kgaa-lifts-2025-profit-outlook-after-strong-drug-ai-material-sales-in-q2-4175019
[2] https://www.merckgroup.com/en/news/q2-2025-07-08-2025