Bayer Raises 2026 Profit Outlook as Pharma Beats Expectations

Bayer raised its full-year adjusted core earnings outlook, on a currency-adjusted basis, to €9.8 billion to €10.3 billion, from €9.6 billion to €10.1 billion, citing a better-than-expected third quarter in pharmaceuticals. Pharma sales were €4.68 billion, 5 percent above analyst expectations in a Vara Research poll, and Bayer shares rose 5 percent by mid-morning.

Chief executive Bill Anderson also said Bayer expects a $7.25 billion Roundup settlement before Christmas, a development that could finally put a long-running legal overhang behind the company. Roundup litigation has weighed on Bayer's shares and strategy since its acquisition of Monsanto.

The pharmaceutical division's strength offset continued softness elsewhere in the group, where crop science and consumer health face their own pressures. Analysts said the quarter showed the pharma pipeline beginning to deliver after years of restructuring.

Bayer has spent recent years cutting costs, reshaping its portfolio and working through legal liabilities, and investors have been watching for evidence that the turnaround is gaining traction. Tuesday's upgrade gave them that evidence, at least for the current year.

The company cautioned that currency moves and agricultural market conditions remain risks for the rest of the year. But with the settlement timeline now public, attention turns to whether Bayer can close the chapter and refocus fully on growth.