Merck KGaA, Germany, kicked off 2026 with stronger-than-expected momentum, lifting its full-year guidance after solid growth in its Life Science and Electronics businesses helped offset continued foreign exchange pressure.
The German science and technology giant posted first-quarter net sales of €5.1 billion, down 2.8% on a reported basis due to currency headwinds, but up 2.9% organically. EBITDA pre held steady at €1.5 billion, while organic EBITDA pre growth climbed 5.3%, driven by booming demand in semiconductor materials and pharmaceutical manufacturing solutions.
The company’s shares of confidence were underlined by an upgraded 2026 outlook, with Merck now expecting annual net sales of up to €21.4 billion and EBITDA pre of as much as €6.1 billion.
“Our first-quarter performance underlines the strength of the company’s diversified portfolio and its clear focus on complementary science and technology businesses,” said Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck KGaA, Darmstadt, Germany, since May 1.
“Based on our performance in the first quarter and our current market conditions, we upgrade our full-year 2026 financial guidance. At the same time, we sharpen the strategic direction of the company for the long-term.
"As markets, technologies and customer needs evolve, we will adapt our operating model and move towards a stronger focus on integrated workflow solutions for customers, expanding our offerings for customers and patients and bundling capabilities across our businesses.”
The strongest gains came from Life Science, where Process Solutions — the division serving pharmaceutical manufacturing — surged 16.2% organically and crossed the €1 billion sales mark for the quarter.
Demand was fueled by strong uptake in downstream processing and single-use technologies, alongside fresh customer projects and regional stock-building activity.
Life Science overall delivered €2.3 billion in sales, powered by 8.3% organic growth that more than compensated for negative currency effects. Merck also completed its acquisition of JSR Life Sciences’ chromatography business, expanding its biologics manufacturing capabilities.
Healthcare remained resilient despite pressure on legacy drugs and intensifying competition. Sales slipped 3% to €2.1 billion, but rare disease therapies including Ogsiveo and Gomekli® provided a critical growth engine. Diabetes treatment Glucophage and thyroid drug Euthyrox also posted solid gains.
At the same time, Merck’s oncology and neurology businesses faced mounting competitive and patent pressures. Bavencio sales dropped 17%, while multiple sclerosis drug Mavenclad weakened amid the loss of U.S. market exclusivity.
Electronics emerged as another bright spot, benefiting from relentless demand tied to artificial intelligence and advanced semiconductor manufacturing. Organic sales in Semiconductor Solutions rose 7.5%, with AI chip systems and advanced nodes driving growth in high-value materials.
The division also received a major earnings boost from one-off gains tied to a supplier dispute reimbursement and the sale of OLED patents to Universal Display Corporation.
Despite the upbeat operational performance, currency swings continued to bite hard.
A stronger euro against the U.S. dollar and several Asian currencies cut deeply into reported sales and earnings across all three divisions.
Still, Merck used the quarter to signal a broader strategic shift aimed at accelerating long-term growth. The company said it will sharpen its focus on integrated customer solutions, expand AI-driven operational capabilities, and pursue targeted acquisitions and partnerships.
“Merck KGaA, Darmstadt, Germany, is operating from a position of strength, building on more than 350 years of science-driven innovation,” Beckmann said.
“Our unique expertise in biology, chemistry, and physics enables us to play a leading role in translating the digital world into the real world. From the laboratory to our customers and patients, we are active along the entire industrial value chain.
"Our strategic direction aims to increase focus across our diversified portfolio, strengthen the company’s innovation engine and enhance the scalability of its operating model. This will enable us to respond to changing market conditions, increase implementation speed, flexibility and scalability, and drive growth and sustainable value over the long term.”
Merck now expects organic group sales growth of up to 3% in 2026, while reaffirming its mid-term ambition for mid-single-digit annual organic sales growth and an EBITDA pre margin approaching 30%.
The company generated operating cash flow of €818 million during the quarter, a 47% jump from a year earlier, while reducing net financial debt to €8.3 billion.
