The leader of the world's 1.2 billion Roman Catholics also called on government leaders to combat the poverty that, he said, could allow fundamentalism to flourish.
In a hard-hitting and wide-ranging speech to the Vatican diplomatic corps, the 80-year-old pontiff voiced sorrow that religion was still being used "at times as a pretext for rejection, marginalisation and violence".
He cited the "fundamentalist-inspired terrorism" that in 2016 claimed victims in Afghanistan, Bangladesh, Belgium, Burkina Faso, Egypt, France, Germany, Iraq, Jordan, Nigeria, Pakistan, Tunisia, Turkey and the United States.
"We are dealing with a homicidal madness which misuses God's name in order to disseminate death, in a play for domination and power.
"Hence I appeal to all religious authorities to join in reaffirming unequivocally that one can never kill in God's name.
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