Bayer Aktiengesellschaft Q2 2026 Earnings Recap

The market reacted positively with a 4.5% gain, reflecting better-than-expected margin expansion in Crop Science and solid growth in key Pharma franchises, offsetting legacy litigation costs and flat overall sales.

Key Takeaways

• Crop Science sales grew 5.5%, driven by seeds, traits, and licensing revenue; EBITDA margin expanded to 31%, a notable improvement over prior year.
• Pharma sales were flat overall but benefited from 66% combined growth in Nubeqa and Kerendia, partially mitigating declines in Xarelto and a 27% drop in Eylea due to biosimilar pressure. EBITDA margin was steady at 26%.
• Consumer Health grew 3.5% with broad contributions, though EBITDA margin trailed last year but remains on track for guidance.
• Free cash flow was negative EUR 2.7 billion, worsening from last year due to litigation-related payouts, underscoring ongoing financial overhangs.
• The Supreme Court ruling on Monsanto litigation provided regulatory clarity, strengthening Bayer’s legal position, supporting investor confidence.