Bayer (BAYN) Q1 2026 earnings summary

Executive summary

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

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

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

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

• Strategic priorities advanced, including progress on litigation settlements, regulatory clarity, and key product launches.

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 a major licensing resolution.

• Pharmaceuticals sales declined 0.5% currency- and portfolio-adjusted, with strong launches (Nubeqa +57%, Kerendia +84%) offsetting declines in mature products; EBITDA margin at 29.2%.

• Consumer Health sales rose 5.3% currency- and portfolio-adjusted, led by Dermatology and Nutritionals; EBITDA margin at 22.6%.

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

• FX headwinds impacted top line by €890 million and bottom line by €320 million.

Outlook and guidance

• Full-year 2026 group outlook confirmed, with 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, Pharmaceuticals, 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 and FX volatility, with no material impact on full-year guidance.