Bayer Aktiengesellschaft (ETR:BAYN) reported first-half sales growth and reiterated its 2026 outlook, while highlighting progress in Crop Science profitability, pharmaceutical launches and litigation containment efforts.
Chief Executive Officer Bill Anderson said group sales reached €24.3 billion in the first six months of 2026, up 3% on a currency- and portfolio-adjusted basis. Core earnings per share also rose 3% to €3.66. EBITDA before special items increased 7% to €6.6 billion.
New Chief Financial Officer Judith Hartmann said Bayer’s performance remained on track to meet its full-year targets. The company reiterated its constant-currency outlook for sales, earnings and free cash flow, while lowering its expected year-end net financial debt range to €29 billion to €30 billion from €32 billion to €33 billion. The revision reflects a €3 billion equity investment from Apollo that is expected to close in the second half of the year.
Hartmann also said Bayer had placed $5 billion in U.S. dollar bonds following the Apollo transaction, which she said demonstrated the company’s access to capital markets.
Crop Science Growth and Margin Expansion
Crop Science sales grew 5.5% in the first half, supported by seeds and traits, including licensing revenue recognized in the first quarter. The division’s EBITDA margin before special items reached 31.4% for the first half.
Second-quarter Crop Science sales rose 4% to €4.9 billion. Soybean sales increased 17% during the quarter, aided by North American performance and higher prices following the return of the dicamba label in the U.S. Glyphosate sales rose 13% in the quarter as both pricing and volumes improved.
However, Core Crop Protection sales declined 2% in the second quarter as lower prices offset demand. Dry weather in parts of Europe tempered the expected volume recovery, while generic competition and portfolio pruning weighed on first-half performance.
Crop Science President Rodrigo Santos said the company is managing a technology transition in Latin American soybeans, where Intacta RR2 Pro is approaching patent expiration. Bayer is expanding its Intacta 2 Xtend platform, which Santos said has reached about 40% penetration and more than 50 million acres. The company is also preparing for the future launch of Iconic in North America.
The division expects its first-half margin strength to moderate in the second half due to a shift toward lower-margin crop-protection products, pricing pressure and the timing of licensing income. Bayer also cited the impact of the Middle East war.
Bayer recently consolidated its U.S. glyphosate operations into a separate entity called Ruveon. Anderson said the structure is intended to provide greater agility in a commodity-driven market, while Santos said changing tariffs and pricing conditions require rapid management of the business.
Pharmaceuticals Positioned for Second-Half Growth
Pharmaceuticals sales were flat in the first half and rose 1% in the second quarter to €4.5 billion. Growth from newer products continued to offset declines in established products facing loss of exclusivity and biosimilar competition.
- NUBEQA sales increased 64% in the second quarter.
- KERENDIA sales rose 83%, driven mainly by the U.S. and China.
- XARELTO sales declined 42% in the quarter.
- EYLEA sales fell 33%, while EYLEA 8 mg represented about 55% of franchise sales.
Pharmaceuticals Head Stefan Oelrich said Bayer expects EYLEA 8 mg to account for approximately 70% of EYLEA franchise sales by year-end. The division’s base business grew 4% in the second quarter, led by radiology and women’s health.
Pharmaceuticals EBITDA before special items fell 4% to €1.1 billion in the quarter, yielding a 23.7% margin. Bayer attributed the decline to higher growth investments and pricing pressure, partly offset by volumes, inventory write-backs and efficiency savings.
Bayer received priority review in the U.S. and China for asundexian, which the company is preparing to launch around the end of 2026 or the beginning of 2027. Oelrich said access could be the main factor affecting the initial launch trajectory. He added that Bayer expects to price the product based on its clinical data and is engaging with reimbursement authorities on pricing considerations.
The company also closed its acquisition of Perfuse Therapeutics, a development-stage medicine targeting glaucoma and diabetic retinopathy. Oelrich said Bayer intends to pursue additional external-growth opportunities, though he said major acquisitions are not currently planned.
Consumer Health and Litigation Developments
Consumer Health sales rose 3.5% in the first half and 1.5% in the second quarter. Nutritionals and dermatology were notable contributors, while e-commerce continued to support growth. Allergy and cold categories declined amid softer seasonal demand and the timing of customer orders.
The division reported a second-quarter EBITDA margin before special items of 22.1%. Hartmann said foreign exchange reduced the first-half margin by roughly 50 basis points, while cost efficiencies and the new operating model supported profitability.
On litigation, Anderson said the U.S. Supreme Court’s June 25 ruling in Monsanto versus Durnell strengthened Bayer’s position by finding that state failure-to-warn claims involving crop-protection products are preempted. He said lower courts have begun acting on the decision.
The proposed class settlement involving Monsanto and plaintiffs’ firms is proceeding, with a final approval hearing scheduled for Aug. 19 in Missouri state court. Anderson said Bayer will assess the quantity and quality of opt-outs but does not expect to provide further detail until the process is complete.
“We’re in a stronger position following the court’s ruling,” Anderson said, adding that Bayer remains focused on improving its balance sheet, strengthening its businesses and reducing the litigation overhang.
About Bayer Aktiengesellschaft (ETR:BAYN)
Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women's health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health.
