Bayer Q2 Earnings Beat Forecasts as Crop Science Boosts Results, Debt Outlook Improves

Bayer AG (ETR: BAYN) reported stronger-than-expected second-quarter 2026 earnings on Tuesday, with its Crop Science division driving results that exceeded analyst forecasts. The German pharmaceutical and agriculture group also improved its net debt outlook after securing a strategic investment from Apollo Global Management.

The company posted core earnings per share of €0.95, outperforming the average analyst estimate of €0.73 and surpassing the highest forecast of €0.81. Although earnings declined 16.7% from €1.14 a year earlier, Bayer said the decrease reflected a normalization in tax expenses and weaker earnings in its Reconciliation segment, despite robust growth in Crop Science.

Group sales reached €10.87 billion, beating the consensus estimate of €10.68 billion and edging above the highest analyst projection of €10.85 billion. EBITDA before special items rose to €2.14 billion, comfortably exceeding the consensus estimate of €1.94 billion, supported by higher Crop Science sales and lower production costs.

Bayer said Crop Science delivered strong revenue growth and significantly higher earnings during the quarter. Meanwhile, Pharmaceutical sales remained broadly unchanged from the previous year, although profits declined due to higher selling expenses. Consumer Health recorded modest sales growth but weaker earnings, affected by increased costs, product mix changes, and unfavorable currency movements.

Net income improved to €219 million, compared with a €199 million loss in the same period last year. While the figure fell short of the average analyst forecast of €249 million, it remained within the expected consensus range.

The company also lowered its full-year 2026 net financial debt forecast to €29 billion–€30 billion, compared with its previous guidance of €32 billion–€33 billion. The improvement follows an agreement for Apollo Global Management to invest €3 billion for a minority stake in a newly created entity housing Bayer’s long-acting reversible contraceptives business. Bayer will retain majority ownership and full operational control, with the transaction expected to close in the second half of 2026.

Bayer reaffirmed all other 2026 financial guidance. It also highlighted a recent U.S. Supreme Court ruling that upheld federal preemption under pesticide regulations, a decision the company believes will significantly help contain ongoing Roundup litigation.