Shares of Merck KGaA were gaining around 8 percent in German trading after the science and technology major on Wednesday lifted its fiscal 2026 guidance and maintained mid-term view, despite weak first-quarter results.
Looking ahead for fiscal 2006, Merck now anticipates net sales between 20.4 billion euros and 21.4 billion euros, and EBITDA pre between 5.7 billion euros and 6.1 billion euros.
Merck previously projected net sales between 20.0 billion euros and 21.1 billion euros, and EBITDA pre between 5.5 billion euros and 6.0 billion euros.
Earnings per share pre is now projected between 7.50 euros and 8.20 euros, higher than previous estimate in a range of 7.10 euros to 8.00 euros.
The company said the revision primarily reflects assumptions of stronger momentum in Life Science and Healthcare's resilience in a challenging environment.
The guidance now assumes no sales of Mavenclad in the United Sates from May 2026, while previous forecast was from March 2026, amid generic competition, and excludes the potential commercialization of Pergoveris in the United States.
On an organic basis, group net sales would be flat to up 3 percent, and EBITDA pre would be down 2 percent to up 2 percent year-over-year.
Previously, the company projected that organic net sales development would be down 1 percent to up 2 percent and organic EBITDA pre development would be down 4 percent to up 1 percent.
Further, Merck confirmed its previous mid-term guidance, and continues to target annual organic sales growth in the mid-single-digit percentage range. For the EBITDA pre margin, the company sees potential for a step-up to approximately 30 percent.
In the first quarter, Merck KgaA's net income attributable to shareholders totaled 659 million euros or 1.52 euros per share, compared with 735 million euros or 1.69 euros per share last year.
Earnings per share pre came in at 2.11 euros, compared to last year's 2.12 euros.
EBITDA pre edged down 0.3 percent to 1.530 billion euros from 1.535 billion euros last year. EBITDA pre grew 5.3 percent organically. EBITDA pre margin of 29.8 percent improved from 29.1 percent a year ago, supported by one-time effects in the Electronics business sector.
The company's net sales for the period fell 2.8 percent to 5.134 billion euros from 5.280 billion euros last year. Organic revenue growth was 2.9 percent, driven by Process Solutions and Semiconductor Materials segments.
On the XETRA in Germany, Merck KGaA shares were trading at 121.70 euros, up 7.7 percent.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.