Bayer has reported a stronger second quarter and a solid first half of 2026, with higher sales and earnings.
The company said all three of its businesses remain on course to meet full-year targets while advancing key strategic priorities, including its litigation containment efforts in the United States.
CEO Bill Anderson said the company had maintained operational momentum across its businesses and continued to execute its long-term strategy.
“Operationally, we’re well on track to achieve our full-year outlook,” Anderson said. “Overall, our containment strategy is in a strong place, with some important milestones ahead.”
Anderson said Bayer had made decisive progress on several strategic priorities, including the landmark US Supreme Court ruling in the Durnell case, which he said strengthens the company's position in pursuing a proposed class settlement agreement.
He also highlighted progress in rebuilding the Pharmaceuticals pipeline, improving profitability at Crop Science through its Five-Year Framework, and driving efficiencies through Bayer's lean operating model.
“Over the past two and a half years, we’ve progressed in each of these areas. Each of them has demanded intense focus – and it’s imperative that we maintain that focus,” Anderson emphasized. “We’re concentrating on delivering our commitments and ensuring the best future for Bayer.”
New Chief Financial Officer Judith Hartmann, who assumed the role in June, said Bayer's focus remains on strengthening its financial position while continuing to invest in growth.
“I am excited to be part of the team driving Bayer forward at such an important time in its journey. While we’ve delivered strong strategic and financial progress, including meaningful steps on our balance sheet, important opportunities remain ahead of us.
"Bayer benefits from a powerful innovation engine and growth prospects across all three businesses. Our financial priorities are clear: to further strengthen the balance sheet, enhance productivity and improve cash generation, while continuing to invest behind growth and creating sustainable value,” Hartmann said.
Group sales rose 2.2% on a currency- and portfolio-adjusted basis to €10.87 billion during the second quarter, while EBITDA before special items increased 1.9% to €2.14 billion despite negative currency impacts.
EBIT climbed sharply to €827 million from €13 million a year earlier as litigation-related special charges declined significantly. Bayer also returned to profitability with net income of €219 million, compared with a loss of €199 million in the same quarter last year.
Core earnings per share fell 16.7% to €0.95, reflecting tax normalization and lower earnings in reconciliation despite stronger Crop Science performance.
Free cash flow was negative €371 million, largely due to higher litigation-related payments. Net financial debt stood at €33.65 billion at the end of June, up 3.5% from March and 1.1% year on year.
Crop Science delivered one of the quarter's strongest performances, with sales rising 3.5% to €4.91 billion.
Growth was led by Soybean Seed & Traits and Cotton Seed following the return of the dicamba label in the United States. Glyphosate-based herbicides and insecticides also posted strong gains, driven by higher volumes and improved pricing, particularly in Europe, the Middle East and Africa.
The division's EBITDA before special items jumped 30.2% to €902 million as higher-margin sales and efficiency measures under its Five-Year Framework reduced production costs. EBITDA margin improved to 18.4%.
Pharmaceuticals sales were broadly stable at €4.46 billion, supported by continued strong demand for Bayer's newer growth products.
Cancer therapy Nubeqa recorded sales growth of 63.9%, while chronic kidney disease and heart failure treatment Kerendia surged 82.9%, driven mainly by higher demand in the United States, Europe and China.
The Mirena product family also delivered solid growth, while Radiology products Ultravist™ and CT Fluid Delivery posted healthy gains.
As expected, older blockbuster medicines continued to face pressure. Xarelto sales declined 42.4% following patent expirations, while Eylea sales fell 32.8%, although the longer-acting Eylea 8 mg formulation accounted for about 55% of total Eylea sales.
EBITDA before special items in Pharmaceuticals slipped 3.6% to €1.06 billion as Bayer increased commercial investments behind growth products including Lynkuet™, Nubeqa and Kerendia.
Consumer Health sales increased 1.5% to €1.45 billion, with Digestive Health emerging as the fastest-growing category. Allergy & Cold products declined because of a weaker seasonal market.
While the US market remained challenging, Consumer Health posted year-on-year growth across Europe, the Middle East, Africa, Latin America and Asia-Pacific.
EBITDA before special items fell 3.6% to €319 million as higher production costs and product mix pressures outweighed ongoing cost-control measures.
For the first six months of 2026, Bayer reported a 3.3% increase in Group sales to €24.28 billion. EBITDA before special items rose 6.6% to €6.60 billion, while core earnings per share increased 3.4% to €3.66.
The company reaffirmed its currency-adjusted guidance for 2026 across all operating metrics. It lowered its forecast for net financial debt to €29-30 billion from the earlier €32-33 billion, reflecting the previously announced agreement with Apollo-managed funds, which will invest €3 billion for a minority stake in Bayer's long-acting reversible contraceptives business.
