Bayer stock gains as pharma lifts 2026 outlook

Bayer raised several 2026 targets after reporting stronger third-quarter operating performance on November 3, with Pharmaceuticals driving the improvement. The company said the division is entering a new growth cycle, while Crop Science and Consumer Health continue to face market pressures.

According to Bayer's November 3 release, group sales rose 4.1 percent year over year to 10.053 billion euros. Adjusted for currency and portfolio effects, sales increased 1.9 percent. EBITDA before special items advanced 6.9 percent to 1.615 billion euros, including a positive currency effect of 36 million euros.

Pharmaceuticals leads the recovery

Pharmaceuticals was the central growth engine. Reported division sales increased 8.0 percent to 4.680 billion euros and rose 6.4 percent on a currency- and portfolio-adjusted basis. EBITDA before special items climbed 23.6 percent to 1.292 billion euros, lifting the division margin by 3.5 percentage points to 27.6 percent.

Nubeqa and Kerendia led the advance, with currency- and portfolio-adjusted sales growth of 58.3 percent and 64.9 percent, respectively. Bayer said Nubeqa generated approximately one billion euros in quarterly sales, while Kerendia exceeded one billion euros over the 12 months ended September 30, 2026. Xarelto and Eylea continued to decline because of patent expiries, although Bayer said the pace of decline was slowing.

The other divisions were less supportive. Crop Science sales fell 2.4 percent on a currency- and portfolio-adjusted basis, while its adjusted EBITDA dropped 41.3 percent to 101 million euros in the seasonally small quarter. Consumer Health sales were broadly stable on the same basis, but adjusted EBITDA declined 4.4 percent to 347 million euros.

Guidance improves despite cash pressure

Bayer raised its Pharmaceuticals adjusted EBITDA margin target to 25 to 27 percent from 23 to 25 percent previously. Group EBITDA before special items is now expected at 9.8 to 10.3 billion euros on a currency-adjusted basis, compared with the former range of 9.6 to 10.1 billion euros.

The company also lifted its free cash flow target by one billion euros to negative 1.5 to negative 0.5 billion euros and lowered its expected year-end net financial debt range to 28.0 to 29.0 billion euros from 29.0 to 30.0 billion euros. CFO Judith Hartmann said the year-to-date performance gave Bayer confidence to improve its targets for adjusted EBITDA, cash and debt.

Operational progress remains offset by significant charges. Third-quarter net income was negative 672 million euros, although the loss narrowed from negative 963 million euros a year earlier. Core earnings per share fell to 0.31 euros from 0.49 euros, while EBIT included impairment losses on the Xofigo and Claritin brands and litigation-related expenses. Free cash flow was negative 293 million euros, partly because of payments linked to legal proceedings.

What the outlook means for investors

Bayer stock traded at 55.65 euros on Lang & Schwarz at 10:03 CET on Thursday, November 5, 2026, 2.60 percent above the Xetra close of Wednesday, November 4. Investors are weighing the stronger pharmaceutical trajectory against continuing litigation outflows, crop-science weakness and the earnings effect of patent expiries.

For the live quote, see the real-time quote of Bayer stock. Bayer's upgraded targets improve the operating picture, but the negative free cash flow outlook shows that stronger earnings do not yet remove the balance-sheet and litigation burden.

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