Merck (MRK) Q1 2026 (Media) earnings summary

Executive summary

• Solid Q1 2026 performance with organic net sales growth of 2.9% and EBITDA pre growth of 5.3%, despite reported net sales declining by 2.8% to €5,134 million due to significant negative foreign exchange effects.

• EBITDA pre remained stable at €1,530 million, with margin improvement to 29.8%.

• Upgraded full-year 2026 guidance, reflecting confidence in continued momentum, especially in Life Science and Semiconductor Materials.

• Strategic direction sharpened to focus on integrated workflow solutions, innovation, and scalable operations for long-term value.

• Significant events included a major U.S. government agreement, acquisition of JSR Corporation's chromatography business, and sale of Celestial AI Inc. shares.

Financial highlights

• Q1 2026 net sales: €5,134 million, down 2.8% year-over-year due to -5.5% FX impact, but organic growth of 2.9%.

• EBITDA pre: €1,530 million, flat year-over-year, with organic growth of 5.3% and margin improvement to 29.8%.

• Earnings per share pre: €2.11, nearly unchanged from prior year.

• Operating cash flow increased 47.2% to €818 million.

• Net financial debt decreased by 3.5% to €8,318 million; net financial debt to EBITDA pre at 1.4x.

Outlook and guidance

• Full-year 2026 net sales expected between €20.4–€21.4 billion; organic growth 0% to +3% YoY.

• EBITDA pre guidance: €5.7–€6.1 billion; organic change -2% to +2% YoY.

• EPS pre guidance: €7.50–€8.20.

• Free cash flow forecast: €1.6–2.1 billion.

• Life Science net sales expected to grow organically by 4%–7% YoY; Healthcare to decline by 3%–6% organically due to MavencladⓇ patent loss; Electronics to grow 3%–7% organically.