Bayer Aktiengesellschaft (ETR:BAYN) said its first-quarter results for 2026 were in line with expectations, with group sales rising 4% on a currency- and portfolio-adjusted basis to EUR 13.4 billion and core earnings per share increasing to EUR 2.71.
Bill, speaking for Bayer management on the call, said the company was “in a good position to confirm” its 2026 outlook, while cautioning that the operating environment remains volatile. Wolfgang, presenting quarterly financial details for the final time before handing over to Judith in June, said EBITDA before special items rose 9% year over year to EUR 4.5 billion, supported by a higher Crop Science result.
Free cash flow was negative EUR 2.3 billion in the quarter, about EUR 800 million below the prior-year period. Wolfgang said the decline was expected and reflected about EUR 2 billion of payments tied to previously announced settlement activities for PCB and glyphosate litigation. Net financial debt rose to EUR 32.5 billion from year-end 2025, though it was down about EUR 1.7 billion from a year earlier.
Crop Science lifted by soy licensing revenue
Crop Science sales increased nearly 7% year over year to EUR 7.6 billion. Bill said the division’s performance was bolstered by roughly EUR 450 million in additional soy licensing resolution revenue that Bayer had previously communicated. Excluding that impact, the core Crop Science business grew 1.4%, driven by corn strength and offset by expected declines in crop protection.
Wolfgang said seeds and traits sales rose 18%, with corn up 7% on growth across all regions. Soybean sales posted a “very significant increase” due to the licensing resolution, while excluding that effect, soybean sales rose 9% on higher prices from the recovery of the dicamba label in the U.S. and strong Latin America volumes.
Crop protection sales declined 7% amid generic pressure and challenged farmer profitability, while glyphosate sales fell 15% on lower volumes due to delayed purchases. Bayer said it expects partial volume recovery in the second quarter, led by North America and supported by Stryax herbicide growth, with additional recovery focused on Latin America in the second half.
Crop Science EBITDA before special items rose 18% to EUR 3 billion, producing a 39.9% margin. Wolfgang attributed the higher margin mainly to higher-margin sales, the soy licensing resolution and disciplined cost savings, which offset foreign exchange headwinds.
Pharma launch assets offset Xarelto and Eylea declines
Pharmaceuticals sales were roughly flat at EUR 4.2 billion. Bayer said growth from Nubeqa and KERENDIA continued to offset anticipated declines in Xarelto and Eylea.
Nubeqa sales grew 57% across regions, while KERENDIA sales increased 84%, mainly driven by the U.S. and China. Together, the two products contributed EUR 1 billion in first-quarter net sales. Stefan said in response to an analyst question that Bayer continues to see strong demand for KERENDIA in both the U.S. and China and is broadening its prescriber base.
Xarelto sales declined 40% due to loss-of-exclusivity impacts across markets. Eylea sales fell 21%, as continued volume growth for Eylea 8 mg was offset by biosimilar competition and pricing pressure. Wolfgang said Eylea 8 mg now represents 46% of the Eylea franchise.
Pharmaceuticals EBITDA before special items declined 8% to EUR 1.2 billion, resulting in a 29.2% margin. Wolfgang said the decline reflected pricing pressure and continued investment behind launches and innovation, partly offset by savings, volume uptake and about EUR 120 million of income from two smaller tail-end divestments.
Bayer also highlighted recent pipeline and business development activity. Bill said KERENDIA has shown positive top-line data in non-diabetic patients with kidney disease and has potential, if approved in additional indications, to serve patients across a broader spectrum of chronic kidney disease and heart failure. He also noted Bayer’s agreement to acquire Perfuse Therapeutics, adding a development-stage medicine in glaucoma and diabetic retinopathy.
Consumer Health grows despite weaker markets
Consumer Health sales rose 5% in the quarter, with growth across almost all categories. Dermatology and Nutritionals posted double-digit growth, with Nutritionals benefiting from Bayer’s expanding e-commerce business and the integration of Nuzena, a nutritionals e-commerce business Bayer acquired.
Wolfgang said the division is navigating softer consumer sentiment in its two largest markets, the U.S. and China. Cough and cold declined because of a softer season in North America and parts of EMEA, while digestive health was affected by pharmacy consolidation in China and a shift toward e-commerce that reduced retail inventory needs.
Consumer Health EBITDA margin before special items was 22.6%, slightly below the prior year. Wolfgang said foreign exchange reduced the margin by 70 basis points, while productivity gains, cost management and divestment gains helped fund additional brand and portfolio investments.
Litigation milestones and Supreme Court case in focus
Bill said Bayer is in a “crucial phase” of its litigation containment efforts. The class settlement agreement announced in February with leading plaintiffs firms has passed several hurdles, he said. Objections and opt-outs are due by June 4, and a final approval hearing is scheduled for July.
During the question-and-answer session, Bill said Bayer expects to receive an update from the class administrator about one week after the June 4 opt-out deadline, but the company will need time to evaluate the information. He said investors should not expect company commentary immediately after the deadline.
Bayer also discussed its recent arguments before the U.S. Supreme Court on preemption. Bill said the company believes preemption is necessary for U.S. agriculture and consistent with the law. He said Bayer felt its arguments were well represented but noted the court will interpret the law and issue a ruling.
Company confirms 2026 outlook, watches FX and geopolitics
Bayer reiterated its full-year 2026 outlook at constant currencies. Wolfgang said the company expects to cover potential geopolitical impacts within its guidance ranges, while continuing to monitor foreign exchange, tariffs, energy costs and other macroeconomic risks.
Foreign exchange headwinds in the first quarter totaled about EUR 890 million to sales and about EUR 320 million to EBITDA before special items, driven mainly by the U.S. dollar. Based on April forward rates, Wolfgang said Bayer would face an estimated EUR 1 billion sales headwind, about EUR 400 million of EBITDA headwind and about EUR 0.30 of core EPS headwind.
In Crop Science, Bayer is monitoring energy prices, petrochemical supply chains, farmer profitability and acreage decisions. In Pharmaceuticals, management said it does not expect a major 2026 impact from tariffs, while continuing to monitor drug-pricing developments. In Consumer Health, Bayer said geopolitical tensions could affect consumer sentiment and demand, while higher oil prices could influence supply and production costs.
Bill said Bayer remains focused on delivering its 2026 commitments and investing in future growth across its three divisions, while also emphasizing that the company’s primary source of funds should come from operating income.
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.
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