Bayer (BAYN) Q1 2026 earnings summary

Executive summary

• Q1 2026 group sales reached €13.4 billion, up 4–4.1% currency and portfolio adjusted, but down 2–2.4% as reported due to €0.9 billion FX headwinds.

• Core EPS increased 12.9–13% to €2.71, with free cash flow at -€2.3 billion, mainly due to €2.1 billion in litigation-related payments.

• EBITDA before special items rose 9% to €4.5 billion, led by Crop Science, despite negative currency effects.

• Net income more than doubled year-over-year to €2.8 billion, driven by special gains and improved operating performance.

• Crop Science and Consumer Health divisions drove growth, while Pharma remained flat.

Financial highlights

• Crop Science sales grew 6.8% currency and portfolio adjusted, with EBITDA margin expanding to 39.9% due to strong Seeds & Traits and licensing resolution income.

• Pharmaceuticals sales declined 0.5% cpa, with strong launches (Nubeqa +57%, Kerendia +84%) offset by declines in Xarelto (-40%) and Eylea (-21%); EBITDA margin 29.2%.

• Consumer Health sales rose 5.3% cpa, led by Dermatology and Nutritionals; EBITDA margin at 22.6%, slightly below prior year due to FX headwinds.

• Net financial debt stood at €32.5 billion at quarter-end, down year-over-year but up from year-end 2025.

• EBIT rose 51.8% to €3.5 billion, benefiting from €324 million in net special gains, mainly from divestments.

Outlook and guidance

• Full-year 2026 guidance confirmed at constant currencies, with group sales expected at €44.5–47.0 billion and EBITDA before special items at €9.4–10.1 billion.

• Core EPS guidance for 2026 is €4.10–4.80, reflecting updated methodology and currency assumptions.

• Free cash flow for 2026 projected at €-2.5 to -1.5 billion, including €5 billion in litigation-related payouts.

• Divisional outlooks confirmed: Crop Science, Pharma, and Consumer Health all guided to low single-digit sales growth and stable-to-improving EBITDA margins at constant FX.

• Management continues to monitor geopolitical risks and FX volatility, with no material impact on full-year guidance.