German science and technology company Merck KGaA delivered better-than-expected first-quarter earnings despite a decline in profit compared to last year, supported by continued strength in semiconductor-related demand and solid performance in its Life Science business.
The company posted net profit of 669 million euros for the quarter ending March 31, representing a year-over-year decline of around 9%. Earnings per share came in at 2.11 euros, surpassing market expectations.
Quarterly revenue reached 5.13 billion euros, slightly ahead of analyst forecasts. While overall sales were pressured by foreign exchange impacts, Merck said demand remained healthy across its Healthcare, Life Science, and Electronics segments.
The Electronics division continued to benefit from rising demand for advanced semiconductor materials used in artificial intelligence technologies and high-performance computing systems. The company highlighted this business as one of the key growth drivers during the quarter.
Merck also reported positive momentum in its Life Science unit, helped in part by reduced competitive pressure on its multiple sclerosis treatment, Mavenclad.
Following the stronger quarterly performance, the company increased its fiscal 2026 guidance. Merck now expects EBITDA to range between 5.7 billion and 6.1 billion euros, compared with its previous forecast of 5.5 billion to 6.0 billion euros.
The company also projected annual sales between 20.4 billion and 21.4 billion euros. Organic sales growth guidance was revised higher to a range of 0% to 3%, while expected organic EBITDA growth was improved to between -2% and 2%.
In addition, Merck raised its earnings-per-share outlook to between 7.50 and 8.20 euros for FY26.
Analysts reacted positively to the updated guidance, with some expecting the company’s shares to outperform following the earnings beat and improved outlook across all major business divisions.