Bayer has raised its full-year 2026 financial outlook after stronger-than-expected momentum in its Pharmaceuticals business helped offset persistent market pressures in Crop Science and Consumer Health.

 

The German life sciences group said it remained on track to meet its full-year commitments after the first nine months, with accelerating sales of blockbuster drugs Nubeqa and Kerendia driving pharmaceutical growth. 

 

The improved performance prompted the company to upgrade its forecasts for the Pharmaceuticals margin, Group EBITDA before special items, free cash flow and net financial debt.

 

“We’ve reached a turning point in Pharma’s growth trajectory and we’re beginning to see the other side,” CEO Bill Anderson said on Tuesday while presenting the company’s third-quarter results.

 

Anderson said Nubeqa and Kerendia were demonstrating the division’s growth potential, adding that Bayer now expected full-year sales growth towards the upper end of its guidance range.

 

While Pharmaceuticals gathered momentum, Crop Science and Consumer Health continued to perform in line with their respective targets despite challenging market conditions.

 

Beyond its financial performance, Bayer highlighted significant progress on its strategic priorities, particularly in its pharmaceutical pipeline.

 

Last week, China approved asundexian for secondary stroke prevention under the brand name Sunharbo. The approval marks a major milestone for Bayer, making asundexian the first Factor XIa inhibitor to receive regulatory approval worldwide.

 

Describing the development as “the biggest news out of our pipeline,” Anderson said: “asundexian is now the first approved Factor XIa inhibitor worldwide – and we’re focused on obtaining additional approvals.”

 

He also credited Bayer's research team in Wuppertal for bringing the drug to market ahead of schedule.

 

“Our scientists in Wuppertal invented this molecule and have worked on it for more than a decade. They’ve embraced our operating model and AI, which allowed them to substantially compress the timeline, getting this medicine to patients a year early. Incredible impact!”

 

The company also reported progress in managing its extensive glyphosate litigation exposure. Bayer secured a favourable verdict last week in the first glyphosate case to reach trial since the U.S. Supreme Court's 7-2 ruling.

 

Anderson described the outcome as an encouraging sign of progress in the company's efforts to contain litigation risks.

 

“The fact that all 12 jurors sided with the company should be informative for those seeking to pursue claims in the court system. We will continue to handle cases in the best interests of the company, and we’re awaiting an important decision on the class settlement.”

 

Bayer reported third-quarter sales of €10.053 billion, representing a 4.1% increase on a reported basis and 1.9% growth after adjusting for currency and portfolio effects.

 

EBITDA before special items rose 6.9% to €1.615 billion, supported by improved operating performance and favourable currency movements.

 

However, the company continued to report a substantial operating loss. EBIT stood at minus €110 million, compared with minus €543 million in the same quarter last year.

 

The result included a €307 million impairment charge on the Xofigo brand in Pharmaceuticals and net special charges of €407 million, primarily reflecting a €215 million impairment on the Claritin™ brand in Consumer Health and litigation-related expenses.

 

Net income remained negative at minus €672 million, although this was an improvement on the minus €963 million recorded a year earlier.

 

Core earnings per share declined to €0.31 from €0.49, as stronger operating earnings were only partly able to offset non-cash charges arising from interest rate changes.

 

Free cash flow also weakened, falling to minus €293 million from positive €596 million a year earlier, partly reflecting anticipated higher payments related to legal proceedings.

 

Bayer's net financial debt stood at €31.083 billion at September 30, down €2.564 billion from the previous quarter and €1.625 billion year on year.

 

The reduction was largely driven by a previously announced €3 billion payment from Apollo Global Management in exchange for a minority stake in a newly established entity.

 

Bayer's Crop Science division continued to face difficult market conditions, with regulatory challenges, adverse weather and cost pressures weighing on performance.

 

Third-quarter sales reached €3.884 billion, broadly flat on a reported basis, but declined 2.4% after adjusting for currency and portfolio effects.

 

Weakness in Europe, the Middle East and Africa, as well as Asia-Pacific, was partly offset by strong growth in Latin America, where demand for corn and soybean seeds increased ahead of the summer season.

 

The seed business delivered a mixed performance. Corn Seed & Traits sales remained broadly stable, while Soybean Seed & Traits grew 4.5%.

 

Crop protection, however, remained under pressure. Sales in both Fungicides and Herbicides excluding Glyphosate declined 8.6%.

 

The pressure was more pronounced at the earnings level. EBITDA before special items plunged 41.3% to €101 million, reflecting higher costs of goods sold and increased selling expenses.

 

Bayer noted that the comparison was also affected by favourable factors in the year-ago period. The division's EBITDA margin before special items fell 1.9 percentage points to 2.6%.

 

Pharmaceuticals was the standout performer, delivering strong growth across key products and reinforcing expectations of a new expansion cycle for the division.

 

Third-quarter sales increased 8% to €4.680 billion, or 6.4% after adjusting for currency and portfolio effects.

 

The biggest growth drivers were cancer treatment Nubeqa and Kerendia, which is used to treat chronic kidney disease and heart failure.

 

Sales of Nubeqa surged 58.3%, while Kerendia recorded growth of 64.9%, both on a currency- and portfolio-adjusted basis.

 

Nubeqa generated approximately €1 billion in sales in the third quarter alone. Kerendia also crossed the blockbuster threshold, generating more than €1 billion in sales over the 12 months from October 1, 2025.

 

The Radiology business also delivered strong results, while Beyonttra, Bayer's treatment for cardiomyopathy, recorded sales five times higher than the prior-year period following a successful European launch and significant volume growth.

 

Bayer's Consumer Health business delivered resilient sales despite a mixed market environment and continued weakness in key regions.

 

Third-quarter sales increased 2.1% on a reported basis to €1.445 billion, while remaining virtually unchanged after currency and portfolio adjustments.

 

Digestive Health and Dermatology were the strongest categories, growing 4.5% and 3%, respectively.

 

However, the Nutritionals category declined 3.4%, while Allergy & Cold sales fell 2.9%, reflecting weaker demand for cough and cold products.

 

Regionally, Asia-Pacific and Latin America delivered growth, but Europe, the Middle East and Africa recorded lower sales against a strong prior-year comparison. Consumer Health also continued to face a weak market environment in the United States.

 

EBITDA before special items declined 4.4% to €347 million. Cost and pricing initiatives only partly offset higher marketing investments behind innovative products.

 

Earnings also benefited from proceeds related to the sale of a small, non-strategic brand and a positive currency effect. The division's EBITDA margin fell 1.7 percentage points to 24%.

 

The stronger Pharmaceuticals performance has given Bayer greater confidence in its full-year financial outlook, prompting upgrades across several key performance indicators.

 

“Our year-to-date performance is a proof point that our strategy is working, and it gives us the confidence to improve our targets for the year on adjusted EBITDA, cash and debt,” said Judith Hartmann, Chief Financial Officer of Bayer.

 

The company has raised its full-year Pharmaceuticals EBITDA margin guidance to 25-27%, up from the previous forecast of 23-25%.

 

Group EBITDA before special items is now expected to reach €9.8 billion to €10.3 billion on a currency-adjusted basis, compared with the earlier range of €9.6 billion to €10.1 billion.

 

The company has also significantly improved its free cash flow outlook, narrowing the expected full-year deficit to between €500 million and €1.5 billion, against its previous forecast of €1.5 billion to €2.5 billion.

 

Net financial debt is now projected to end 2026 at €28 billion to €29 billion, below the earlier estimate of €29 billion to €30 billion.

 

Bayer maintained its full-year guidance for all other key performance indicators, as outlined in its 2026 Half-Year Financial Report.

 

Despite the improved outlook, management signalled that financial discipline, debt reduction and investment in future growth would remain central to its strategy.

 

“We remain focused on our priorities: strengthening the balance sheet, improving productivity and cash generation, and building the financial flexibility to invest in our next generation of growth,” said Hartmann.