Bayer increases sales and EBITDA before special items in the third quarter, improves full-year outlook

Bayer has also made major strides on key strategic topics. Last week, for instance, asundexian was granted approval in China for secondary stroke prevention under the brand name Sunharbo™. Describing it as “the biggest news out of our pipeline,” Anderson explained that “asundexian is now the first approved Factor XIa inhibitor worldwide – and we’re focused on obtaining additional approvals.” Commending the team behind it, he said: “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!”

On the litigation side, the company last week secured a decision in its favor in the first glyphosate case to go to trial since the 7-2 ruling of the U.S. Supreme Court. Anderson sees this as a strong sign that Bayer’s containment work is advancing. “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.”

Sales and EBITDA before special items advance against prior year

Group sales came in at 10.053 billion euros in the third quarter of 2026, up 4.1 percent on a reported basis and 1.9 percent after adjusting for currency and portfolio effects (Fx & portfolio adj.). There was a positive currency effect of 246 million euros. EBITDA before special items increased by 6.9 percent to 1.615 billion euros, and included a positive currency effect of 36 million euros. EBIT amounted to minus 110 million euros (Q3 2025: minus 543 million euros), weighed down by an impairment loss of 307 million euros on the Xofigo™ brand within the Pharmaceuticals Division. EBIT also included net special charges of 407 million euros (Q3 2025: 1.064 billion euros) that primarily related to an impairment loss of 215 million euros on the Claritin™ brand within the Consumer Health Division, as well as litigation-related expenses. Net income came in at minus 672 million euros (Q3 2025: minus 963 million euros). Core earnings per share decreased to 0.31 euros (Q3 2025: 0.49 euros), with the improvement in operational earnings performance only partially offsetting non-cash charges from interest rate changes.

Free cash flow declined to minus 293 million euros (Q3 2025: plus 596 million euros), partly due to expected higher payments to resolve legal proceedings. Net financial debt came in at 31.083 billion euros as of September 30, 2026, representing a decline of 2.564 billion euros against June 30, 2026, and a decrease of 1.625 billion euros from a year-on-year perspective. This development was largely attributable to a payment of 3.0 billion euros from Apollo Global Management Inc. in exchange for a minority stake in a newly established entity, which was previously communicated.

Crop Science: Seed business gains partly offset crop protection headwinds

Sales in the agricultural business (Crop Science) came in at 3.884 billion euros, in line with the prior-year quarter on a reported basis (plus 0.7 percent). Adjusted for currency and portfolio effects, sales were 2.4 percent lower year on year, largely due to regulatory impacts and adverse weather conditions in Europe/Middle East/Africa and Asia/Pacific. However, these headwinds were partially offset by strong growth in Latin America, which was primarily fueled by increased demand for corn and soybean seeds for the summer season. Corn Seed & Traits sales came in at the prior-year level overall (Fx & portfolio adj. minus 0.1 percent), while business at Soybean Seed & Traits was up 4.5 percent (Fx & portfolio adj.). By contrast, the division registered declines of 8.6 percent (Fx & portfolio adj.) at both its Fungicides and Herbicides excl. Glyphosate units.

EBITDA before special items decreased by 41.3 percent to 101 million euros in the three months ending September 30, the period which typically represents the quarter with the smallest contribution to full-year earnings of the agricultural business due to seasonal factors. The decline in earnings was mainly attributable to an increase in the cost of goods sold and higher selling expenses. These negative cost-related developments partially reflected the impact of favorable effects in the prior-year period. By contrast, there was a positive currency effect of 9 million euros. The EBITDA margin before special items decreased by 1.9 percentage points to 2.6 percent.

Pharmaceuticals starts new growth cycle

Sales of prescription medicines (Pharmaceuticals) rose by 8.0 percent to 4.680 billion euros on a reported basis. Adjusted for currency and portfolio effects, sales were up 6.4 percent. Growth continued to be driven by the cancer drug Nubeqa™ and Kerendia™, for the treatment of chronic kidney disease and heart failure, with sales up 58.3 and 64.9 percent (Fx & portfolio adj.), respectively. Buoyed by these gains, Nubeqa™ sales hit approximately one billion euros in the third quarter alone, while Kerendia™ also achieved blockbuster status by surpassing the one-billion-mark in the 12 months from October 1, 2025. The Radiology business also delivered strong performance. In addition, sales of Beyonttra™, the division’s product for the treatment of cardiomyopathy, were five times higher than the prior-year level, driven by significant volume gains following the product’s successful market launch in Europe. By contrast, Xarelto™ and Eylea™ sales decreased as anticipated due to patent expirations. However, the rates of decline are gradually slowing, with sales of the oral anticoagulant falling 30.7 percent (Fx & portfolio adj.) and business with the ophthalmology drug down 23.5 percent (Fx & portfolio adj.). The Eylea™ 8 mg formulation offering extended treatment intervals accounted for around 60 percent of overall Eylea™ sales.

EBITDA before special items at Pharmaceuticals advanced by 23.6 percent to 1.292 billion euros. The rise in earnings was primarily driven by topline growth, which, in turn, was mainly fueled by Nubeqa™ and Kerendia™. By contrast, the division recorded an increase in selling expenses as it continues to invest in future growth. In addition, there was a positive currency effect of 30 million euros. The EBITDA margin before special items increased by 3.5 percentage points to 27.6 percent.

Consumer Health: Resilient sales (Fx & portfolio adj.) in a mixed market environment

Sales of self-care products (Consumer Health) increased by 2.1 percent to 1.445 billion euros on a reported basis. Adjusted for currency and portfolio effects, sales were level with the prior-year period (plus 0.1 percent). Business was mainly up in the Digestive Health and Dermatology categories, which saw gains of 4.5 and 3.0 percent (Fx & portfolio adj.), respectively. The topline growth in the Digestive Health business was primarily fueled by significantly higher MiraLAX™ sales in the United States, while the Dermatology category mainly benefited from gains for Bepanthen™. By contrast, business in the Nutritionals category was down 3.4 percent (Fx & portfolio adj.). Sales of cough and cold products also decreased, resulting in a decline of 2.9 percent (Fx & portfolio adj.) for the Allergy & Cold category. From a regional perspective, the division registered higher sales in Asia/Pacific and Latin America, but experienced a decline in business in Europe/Middle East/Africa against a strong prior-year quarter, as well as continued headwinds from a weak market environment in the United States.

EBITDA before special items at Consumer Health decreased by 4.4 percent to 347 million euros, with the division’s continuous cost and price management efforts only partially offsetting the impact of higher investments in marketing its innovative products. In addition, earnings benefited from income from the sale of a minor, non-strategic brand. Furthermore, there was a positive currency effect of 7 million euros. The EBITDA margin before special items declined by 1.7 percentage points to 24.0 percent.

Group outlook for 2026 improved

“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 Dr. Judith Hartmann, Chief Financial Officer of Bayer. In view of the Pharmaceuticals business performance, Bayer has raised its full-year guidance for the division’s EBITDA margin before special items to between 25 and 27 percent (previous forecast: between 23 and 25 percent). As a result, it now expects Group EBITDA before special items to come in at between 9.8 and 10.3 billion euros on a currency-adjusted basis (previous forecast: 9.6 to 10.1 billion euros). The company has also upgraded its free cash flow guidance, lifting the projected range by 1.0 billion euros to between minus 1.5 and minus 0.5 billion euros (previous forecast: between minus 2.5 and minus 1.5 billion euros). In this connection, Bayer now expects year-end net financial debt to come in lower than previously anticipated, with an updated range of between 28.0 and 29.0 billion euros (previous forecast: between 29.0 and 30.0 billion euros). For all other KPIs, Bayer has confirmed its Group guidance for full-year 2026 as published in the Half-Year Financial Report 2026. “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.