German science and technology company Merck has raised its annual earnings forecast after posting solid results in the first quarter of 2026. Demand in the life sciences and semiconductor-related materials sectors was found to have supported revenue and profitability.

Merck announced on the 13th that it recorded consolidated revenue of 5.1 billion euros in the first quarter of 2026. This represents a 2.8% decrease on a reporting basis compared to the same period last year, but a 2.9% increase on an organic basis. Earnings before interest, taxes, depreciation, and amortization (EBITDA pre) for the same period totaled 1.5 billion euros, an increase of 5.3% on an organic basis.

By business segment, revenue in the Life Sciences division reached €2.266 billion, an 8.3% increase on an organic basis. In particular, the Process Solutions business, which handles pharmaceutical manufacturing process solutions, led the performance with double-digit growth. However, the reported growth rate was limited due to the impact of exchange rates.

The electronics division, including electronic materials, grew 4.2% on an organic basis. While demand for semiconductor materials for artificial intelligence (AI) and high-performance computing continued, reported-based revenue declined due to portfolio adjustments and exchange rate impacts. Sales in the healthcare division were supported by the sale of treatments for rare diseases, but organic-based revenue decreased due to pricing and lifecycle impacts on some existing products.

Merck explained that the exchange rate effect negatively impacted sales and profits due to the strength of the euro against the dollar and the weakness of some Asian currencies. Nevertheless, thanks to cost management and business portfolio diversification, the EBITDA pre-margin improved to 29.8% compared to the same period last year.

The company raised its 2026 annual revenue guidance from the previous level, reflecting first-quarter results and market conditions. Merck projected annual revenue in the range of 20.4 billion to 21.4 billion euros and EBITDA pre-investment of 5.7 billion to 6.1 billion euros. Based on this, the forecast for annual organic revenue growth is 0 to 3%.

Merck announced that it plans to maintain its existing guidance in the mid-to-long term and pursue sustainable growth through portfolio adjustments focused on high-value businesses and the expansion of integrated solutions.