Bayer AG (BAYRY Quick QuoteBAYRY - Free Report) reported third-quarter 2026 core earnings of 11 cents per American Depositary Receipt (“ADR”), which missed the Zacks Consensus Estimate of 13 cents. Core earnings per share declined 36.7% year over year, as improved operating performance was offset by a weaker financial result and higher tax expenses.

Quarterly sales increased 4.1% on a reported basis to $11.57 billion but missed the Zacks Consensus Estimate of $11.70 billion. Currency and portfolio-adjusted sales increased 1.9%, supported by robust growth in the Pharmaceuticals division, particularly strong performances from Nubeqa and Kerendia.

Shares of Bayer have gained 28.9% year to date compared with the industry’s 24.6% growth.

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EBITDA before special items increased 6.9% to €1.62 billion, supported by strong pharmaceuticals earnings. The corresponding margin improved 50 basis points to 16.1%.

All growth rates mentioned below are on a year-over-year basis after adjusting for currency and portfolio changes, unless otherwise stated.

Bayer operates through three divisions: Crop Science, Pharmaceuticals and Consumer Health.

Bayer's Crop Science Sales Decline

Crop Science sales declined 2.4% on an adjusted basis to €3.9 billion. Regulatory challenges and unfavorable weather conditions in Europe/Middle East/Africa and Asia/Pacific weighed on performance, partly offset by stronger demand in Latin America.

Corn Seed & Traits sales declined 0.1%, as robust Latin American demand offset lower volumes elsewhere. Fungicides and Glyphosate sales fell 8.6% and 5.3%, respectively, due to unfavorable weather, regulatory pressures and weaker demand.

Herbicides sales, excluding glyphosate, declined 8.6%, primarily due to regulatory challenges in Europe, weather-related volume declines in Asia-Pacific and pricing pressure from generic competitors in North America. However, Soybean Seed & Traits sales increased 4.5%, driven by strong Latin American demand.

Insecticides sales (+0.2%) benefited from higher volumes in North America.

BAYRY's Pharmaceutical Sales Surge

Pharmaceuticals sales increased 6.4% to €4.7 billion, driven by Nubeqa, Kerendia and robust radiology business. However, generic competition continued to pressure established products.

Nubeqa (for cancer) sales surged 58.3% to €998 million, maintaining its robust commercial momentum. Growth was particularly strong in the United States, driven by significant increases in sales volumes.

Sales of the ophthalmology drug Eylea decreased 23.5% to €560 million due to competitive pressure from generics, especially in Europe and Canada.

Eylea 8 mg (which allows for extended treatment intervals) accounted for around 60% of overall Eylea sales.

Bayer’s HealthCare unit co-develops Eylea with Regeneron (REGN Quick QuoteREGN - Free Report) , which records net product sales of Eylea and Eylea 8 mg in the United States. BAYRY records net product sales of Eylea outside the country. REGN records its share of profits and losses from the sale of Eylea outside the United States.

Sales of oral anticoagulant Xarelto, co-developed with Johnson & Johnson (JNJ Quick QuoteJNJ - Free Report) , plunged 30.7% to €377 million due to competitive pressure from generics, especially in Europe.

In the U.S. market, Xarelto is marketed by J&J. Bayer earns license revenues from JNJ for Xarelto sales in the United States.
Sales of the Mirena product family (long-term contraceptive) decreased 2.1% to €368 million.

Kerendia sales (for the treatment of chronic kidney disease associated with type 2 diabetes and heart failure) skyrocketed 64.9% to €374 million, fueled by a substantial rise in volumes in the United States and China.

Ultravist and CT Fluid Delivery sales grew 23.4% and 11.3%, respectively.

Sales of Aspirin Cardio grew 15.7%, while Stivarga sales declined 13.6%.

Bayer's Consumer Health Business Remains Stable

Consumer Health sales increased 0.1% to €1.45 billion. Growth in Digestive Health and Dermatology offset weakness in Nutritionals and Allergy & Cold.

Dermatology sales increased 3%, supported by Bepanthen in China and Latin America. Digestive Health grew 4.5%, driven by strong MiraLAX performance in the United States.

Nutritionals sales declined 3.4%, while Allergy & Cold fell 2.9%, reflecting softer demand.

Bayer’s 2026 Outlook

On a currency-adjusted basis, Bayer expects to generate sales in the range of €45-€47 billion in 2026 (same as before). For the Crop Science Division, it expects currency and portfolio-adjusted sales growth to be flat to +3%. For the Pharmaceuticals Division, Bayer expects currency and portfolio-adjusted sales growth to be flat to +3%. Consumer Health sales growth is projected to be flat to +4%.

Bayer raised its currency-adjusted 2026 EBITDA before special items guidance to €9.8-€10.3 billion from €9.6-€10.1 billion, reflecting stronger Pharmaceuticals profitability.

The company now expects a Pharmaceuticals EBITDA margin of 25-27%, up from 23-25%.

Core EPS is projected to be in the band of €4.30-€4.80 (unchanged).

Our Take on BAYRY's Q3 Performance

Bayer’s third-quarter results were disappointing, with both earnings and revenues missing estimates.

Crop Science business was impacted by unfavorable weather conditions.

Nonetheless, the pharmaceutical business maintains momentum. Kerendia has been one of Bayer’s strongest-performing drugs and strong third-quarter sales boosted the top line.

Nubeqa is another important growth product for Bayer and is benefiting from increasing demand in prostate cancer. Continued expansion of its use and penetration in eligible patients could help support the business as older products face competition.

In women's healthcare, the FDA granted Priority Review in September to elinzanetant (Lynkuet) for treating moderate-to-severe vasomotor symptoms (hot flashes) in women receiving endocrine therapy for the treatment or prevention of hormone receptor-positive breast cancer.

In oncology, Bayer secured regulatory approvals for sevabertinib (Hyrnuo) in two major markets. Japan's Ministry of Health, Labour and Welfare approved the drug in August for patients with HER2 mutation-positive, unresectable advanced or recurrent non-small cell lung cancer (NSCLC). In September, the FDA granted accelerated approval to Hyrnuo as a first-line targeted therapy for patients with HER2-mutated NSCLC.

These approvals expand Bayer's oncology portfolio and provide an opportunity to strengthen its presence in the targeted lung cancer treatment market.

Bayer’s Zacks Rank

BAYRY currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.