Merck (MRK) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered organic group sales growth of 2.9% and organic EBITDA pre growth of 5.3%, despite significant FX headwinds and portfolio effects.

• Life Science and Electronics drove growth, offsetting Healthcare declines due to generic competition and product-specific headwinds.

• Operating cash flow surged 47.2% to €818 million, and net financial debt decreased by 3.5% to €8.318 billion.

• Dividend of €2.20 per share approved and maintained.

• Strategic focus sharpened on integrated workflow solutions and scalable innovation across business sectors.

Financial highlights

• Net sales: €5.134 billion, down 2.8% reported but up 2.9% organically year-over-year, due to FX headwinds.

• EBITDA pre: €1.530 billion, down 0.3% reported but up 5.3% organically; margin improved to 29.8%.

• EPS pre: €2.11 per share, nearly flat year-over-year.

• Operating cash flow: €818 million, up from €556 million in Q1 2025.

• Net financial debt: €8.318 billion, down 3.5% from prior year.

Outlook and guidance

• Upgraded 2026 guidance: net sales €20.4–21.4 billion, EBITDA pre €5.7–6.1 billion.

• Organic group sales growth expected at 0% to +3%; FX impact on sales -3% to -1%.

• EPS pre guidance: €7.50–8.20 per share.

• Life Science organic sales growth guidance: +4% to +7%; Healthcare: -6% to -3%; Electronics: +3% to +7%.

• Free cash flow expected between €1.6–2.1 billion.