(March 4): Bayer AG forecast little change in profit and sales in 2026 as the German agriculture and health company grapples with generic competition for its blockbuster blood thinner and continued uncertainty over its efforts to contain a pesticide litigation in the US.
Adjusted earnings before interest, taxes, depreciation and amortisation will probably reach between €9.6 billion and €10.1 billion this year on a currency-adjusted basis, the company said on Wednesday. That compares with a €9.75 billion average estimate from analysts and last year’s decline to €9.67 billion.
Shares fell as much as 3% in early Frankfurt trading. They were up more than 60% over the last 12 months through Tuesday’s close.
While the guidance is “decent”, it is below consensus, Morgan Stanley analysts including Thibault Boutherin wrote in a note. “Investors will continue to focus on the glyphosate litigation, which will drive the share price in coming weeks and months.”
The outlook follows Bayer’s proposal of a US$7.25 billion US class-action settlement aimed at resolving existing and future claims that the company’s Roundup weed killer causes cancer — allegations the company denies. The plan still faces multiple challenges and comes at a steep price. Bayer increased litigation provisions to €11.8 billion and said settlement payments will result in a negative free cash flow this year of between minus €2.5 billion and minus €1.5 billion.
Chief executive officer Bill Anderson, who took the helm in mid-2023, is trying to steer Bayer through one of the most turbulent periods in its history. He has launched sweeping cost cuts and slashed thousands of jobs — including more than 4,000 in 2025 — while seeking to resolve the mass litigation in the US. The legal overhang has haunted Bayer since its 2018 Monsanto acquisition and has already cost more than US$10 billion in verdicts and settlements.
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Beyond the legal challenges, Bayer is contending with generic competition to its blockbuster blood thinner Xarelto and eye medicine Eylea, both of which posted steeper fourth-quarter sales declines than the average analyst had estimated. Still, strong growth in kidney therapy Kerendia and cancer drug Nubeqa helped lift pharmaceutical sales in 2025.
In its agricultural business, sales grew slightly, mainly thanks to strong demand for corn seeds. Bayer’s smallest unit, consumer health, posted flat sales and declining earnings as it struggled with weakness in the US and China as well as a soft allergy season in North America.
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