Bayer remains operationally on track

Bayer (XETRA: BAYN) delivered solid results for the second quarter of 2026 and confirmed its full-year targets. While Group earnings continue to be weighed down by legal disputes and special items, the operating business remains robust. The agricultural division in particular impressed with a significant increase in earnings, while Pharmaceuticals achieved stable revenue despite patent expiries.
The market also views progress on strategic priorities positively: Bayer believes it is well on track both in containing the glyphosate litigation and in advancing the pharma pipeline and improving profitability.

Q2 2026 at a Glance

Key FigureQ2 2026 Year-over-Year Change
Revenue €10.87 billion+2,2 %
EBITDA before special items€2.14 billion +1,9 %
Adjusted EPS€0.95 -16,7 %
Net income€219 million significant improvement
Free Cash Flow-€371 millionbelow prior year
Net financial debt €33.65 billion +1.1% vs. prior year

Source: Bayer, Q2 2026 quarterly report.

Key Highlights

  • The Group increased revenue and operating earnings despite a still challenging market environment.
  • Crop Science benefited from higher seed and crop protection business as well as efficiency measures and delivered a significant increase in earnings.
  • Pharmaceuticals was able to partially offset the declines from patent expiries for Xarelto™ and Eylea™ through strong growth in Nubeqa™, Kerendia™, and other growth products.
  • Bayer confirmed its operating full-year outlook and expects net financial debt at year-end to be lower than previously forecast.
  • Management sees further progress in settling the US legal disputes as well as in implementing the Group’s long-term strategy.

What Defined the Quarter?

Once again, the strong performance of the agricultural division was the main focus. Higher revenue in the seed and crop protection business as well as falling manufacturing costs led to a significant increase in profitability.
In Pharmaceuticals, growth in the newer products continued. Nubeqa™ and Kerendia™ in particular developed dynamically and continued to gain market share. At the same time, the expected patent expiries of key blockbusters such as Xarelto™ and Eylea™ weighed on the segment.
Bayer also reported strategic progress. The company believes it is on track in reducing legal risks, modernizing its organizational structure, and expanding its innovation pipeline, and confirmed its currency-adjusted outlook for the full year 2026.

MUMAK Assessment

The current quarterly figures confirm our fundamentally positive view of Bayer. While legal disputes and expiring patents remain key headwinds, the company is developing steadily operationally. In particular, the strong performance in the agricultural business and the growth of the new pharma products suggest that the strategic realignment is increasingly taking effect.
For the UMBRELLA strategy, Bayer therefore remains a company with an attractive long-term risk-reward profile. In the coming quarters, further progress in containing legal risks and expanding the innovative drug pipeline will be decisive.
In the short term, the market’s reaction remains particularly exciting. In today’s price action, support around roughly €45 should hold; on the other hand, a breakout above roughly €48 would, in our view, be a positive sign.