Germany — Bayer Raises 2026 Profit Forecast as Pharmaceutical Business Outperforms Expectations
German pharmaceutical and agricultural group Bayer has raised its financial forecast for 2026 after its pharmaceutical division delivered stronger-than-expected results, providing a boost to the company’s earnings outlook.
The company now anticipates adjusted core earnings, measured on a currency-adjusted basis, of between €9.8 billion and €10.3 billion. This represents an increase from its previous projection of €9.6 billion to €10.1 billion.
The pharmaceutical division played the biggest role in the improved forecast. During the third quarter, the business generated €4.68 billion in sales, surpassing analysts’ expectations by 5%, according to a poll conducted by Vara Research.
Adjusted earnings before interest, taxes, depreciation and amortization for the division reached €1.62 billion, approximately 13% above analysts’ estimates.
Chief Executive Bill Anderson pointed to the division’s improving performance, stating, “We’ve reached a turning point in Pharma’s growth trajectory and we’re beginning to see the other side.”
Stronger pharmaceutical results also prompted Bayer to lower its expected debt level at the end of the year. The company reduced its year-end net financial debt projection by €1 billion, bringing the anticipated range to between €28 billion and €29 billion.
Despite the positive developments in pharmaceuticals, Bayer’s agricultural operations continued to face difficulties.
Its crop science division, which manufactures seeds and agricultural protection chemicals, recorded adjusted core earnings of €101 million. The result fell well short of the €164 million forecast by analysts.
Increased selling expenses and declining sales across Europe, the Middle East and Africa, as well as Asia Pacific, weighed on the division’s performance.
Bayer also continues to deal with financial challenges stemming from its $63 billion acquisition of Monsanto in 2018. The purchase substantially increased the company’s debt and brought costly litigation related to Roundup weedkiller.
Nevertheless, the improved earnings forecast received a positive response from investors. Bayer shares rose 2% in early trading in Frankfurt on Tuesday.
The updated financial outlook highlights how stronger pharmaceutical operations are helping Bayer improve its overall financial performance. However, continued weakness in its agricultural business and unresolved legal liabilities remain significant challenges for the company.
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