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Group Sales (H1 2026): EUR24 billion, up 3% on a currency and portfolio adjusted basis.

Group Sales (Q2 2026): EUR10.9 billion, up 2%.

Core EPS (H1 2026): EUR3.66, up 3% year-over-year.

Core EPS (Q2 2026): EUR0.95, down 17% year-over-year due to non-recurring benefits in taxes and reconciliation in 2025.

EBITDA before Special Items (H1 2026): EUR6.6 billion, up 7%.

EBITDA before Special Items (Q2 2026): EUR2.1 billion, up 2%.

Free Cash Flow (H1 2026): Negative EUR2.7 billion, compared to negative EUR1.4 billion in the prior year, driven by litigation-related payouts of EUR2.5 billion.

Net Financial Debt: EUR33.6 billion, slightly up from Q2 2025; expected to reduce to EUR29-30 billion following the Apollo equity investment.

CropScience Sales Growth (H1 2026): 5.5% growth; Q2 sales grew 4% to EUR4.9 billion.

CropScience EBITDA Margin (H1 2026): 31.4%; Q2 margin was 18.4%.

Pharma Sales (Q2 2026): EUR4.5 billion, up 1% year-over-year.

Pharma EBITDA Margin (Q2 2026): 23.7%; H1 margin was 26.4%.

Consumer Health Sales Growth (H1 2026): 3.5%; Q2 growth was 1.5%.

Consumer Health EBITDA Margin (H1 2026): 22.3%; Q2 margin was 22.1%.

Nubeqa Sales Growth (Q2 2026): Up 64% year-over-year.

Karendia Sales Growth (Q2 2026): Up 83% year-over-year.

Xarelto Sales Decline (Q2 2026): Down 42% year-over-year.

Eylea Sales Decline (Q2 2026): Down 33% year-over-year.

Glyphosate Sales Growth (Q2 2026): Up 13% year-over-year.

Soybean Sales Growth (Q2 2026): Up 17% year-over-year.

Release Date: August 04, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Bayer AG (BAYRY) reported a 3% increase in group sales to EUR24 billion in H1 2026, with core EPS up 3% to EUR3.66, meeting expectations.

CropScience delivered strong performance with 5.5% sales growth and a significant EBITDA margin expansion to 31%, driven by higher-margin sales and disciplined execution.

Pharma’s new products Nubeqa and Karendia combined for 66% growth, offsetting declines in Xarelto and EYLEA, and the company is at an inflection point for growth.

The U.S. Supreme Court ruling in Monsanto v. Durnell is a landmark victory for Bayer AG (BAYRY), providing regulatory clarity and strengthening its litigation containment strategy.

The EUR3 billion equity investment from Apollo and successful $5 billion bond placement strengthen the balance sheet, with net financial debt guidance improved to EUR29-30 billion.

Consumer Health posted 3.5% growth, with strong contributions from nutritionals and dermatology, and e-commerce continues to be a key growth driver.

Negative Points

Free cash flow was negative EUR2.7 billion in H1 2026, worse than the prior year, due to EUR2.5 billion in litigation-related payouts.

Pharma EBITDA margin declined to 23.7% in Q2 due to increased growth investments and pricing pressures, with Xarelto and EYLEA declining 42% and 33% respectively.

Core crop protection sales declined 5% year-to-date due to generic pressure and portfolio pruning, with continued regulatory and pricing headwinds expected.

The company faces ongoing litigation uncertainty, with the class settlement still pending final approval and potential opt-outs, and PCB indemnity cases ongoing.

Consumer Health EBITDA margin is trailing prior year, impacted by foreign exchange headwinds and softer seasonal demand in allergy and cold categories.

The transition to new soybean technologies in Latin America and the U.S. is expected to weigh on sales in the second half, with potential El Nino impacts on crop science.

Q & A Highlights

Q: What is Bayer’s current stance on its group structure and strategy, and what could trigger a formal strategic review?A: CEO Bill Anderson stated that the Board of Management is constantly evaluating the most effective way to pursue its mission and secure the company’s future. He emphasized that while Bayer is in a better position than it has been in years, the leadership remains disciplined on its five key priorities: rejuvenating the pharma pipeline, containing litigation, deleveraging, improving Crop Science profitability, and making the company leaner. Anderson believes that continuing to improve on these “no regret” moves will make the company’s future better regardless of any future structural decisions, and they will communicate if and when a strategic opportunity arises.

Q: Can you provide an update on the glyphosate business, the rationale for the Ruvion entity, and the outlook for Crop Science in 2027?A: CEO Bill Anderson explained that Ruvion was created to run the commoditized glyphosate business with more agility and leanness, as it didn’t fit well within the traditional portfolio. Rodrigo Santos, President of Crop Science, added that the business is being managed on a monthly basis to adapt to pricing dynamics and tariffs. For 2027, he noted it is early to provide details, but the company sees continued momentum in seeds and traits, with innovation launches starting in ’27 and further savings from the five-year framework expected to materialize, aligning with their long-term plan.

Q: What are the key levers to reduce net debt, and how will you balance this with investing in innovation and reinstating the dividend?A: New CFO Judith Hartmann stated that the divisions have credible plans to improve their growth and margin profiles, which will generate increasing results. Combined with reduced litigation payouts, this provides an opportunity to both deleverage materially and continue investing in the businesses. On the dividend, she indicated that the company will communicate its plans at the full-year results in February, after working through its medium-term plan.

Q: What is the launch strategy and pricing approach for Asundexian, and how are you preparing for potential MFN policy implications?A: Stefan Oelrich, President of Pharmaceuticals, stated that Asundexian is expected to launch in Q4 and establish a new standard of care for secondary stroke prevention. The launch will involve physician education, with access being the primary limiting factor. On pricing, they are pricing based on strong clinical evidence and are already communicating to reimbursement entities in geographies being considered as comparators for MFN that they will need comparable pricing, warning that failure to do so could create delays in access in markets that follow the US launch in 2027.

Q: How is the Biontra launch progressing, and what is the competitive environment like following a competitor’s trial failure?A: Stefan Oelrich expressed extreme satisfaction with Biontra’s uptake. He noted that the competitive environment is being closely monitored, but believes the stabilizers class has proven clinical efficacy, and Bayer has the strongest data set with over 90% stabilization. He expects to report Biontra sales figures sometime in the second half of this year.

Q: Can you provide more color on the soybean dynamics in Latin America and North America, and the impact of the dicamba label’s return?A: Rodrigo Santos explained that the soybean business is in a planned technology transition. In Latin America, they are transitioning from Intacta to Intacta 2 Xtend, which is growing double-digit and has reached 40% penetration, while the older Intacta technology declines due to patent expiration. In North America, the return of the dicamba label has driven strong growth, and they are preparing for the launch of Viconic in the coming years. He framed this as a transition period that aligns with their five-year framework, with growth expected over the next five years.

Q: What is the company’s approach to inorganic investments and building the pharma pipeline for the post-LOE period?A: Stefan Oelrich stated that while they are focused on driving Nubeqa, Karendia, Asundexian, Biontra, and Linquix to be big products, they are also working on the next success cycle. This includes advancing oncology medicines from their radiopharmaceutical platform, Vividion’s immuno-oncology assets, and cell and gene therapy. He acknowledged the need to “up their game on deals” and, while not planning major acquisitions, they expect to have more cash to invest in external growth opportunities in the coming years.

Q: How is the EYLEA 8mg franchise performing, and what is the IP protection status for the dose?A: Stefan Oelrich noted that EYLEA 8mg is performing very well, reaching 55% of franchise sales, but the 2mg business is under heavy pressure from biosimilars. He stated that they have “limited protection for now” on the 8mg dose and are working on this, but would need to see a product in development that could potentially enter the market to assess the full impact.

Q: What is the outlook for the Crop Science business in Europe given the severe drought, and are you concerned about inventory buildup?A: Rodrigo Santos highlighted strong double-digit growth in seeds and traits in EMEA, with inventory levels in line with last year. He acknowledged that the dry weather has impacted fungicide sales due to less disease pressure, but they have adjusted their selling accordingly. He confirmed that overall inventory in EMEA is under control and at the same level as the prior year.

Q: With litigation taking up less time, where will CEO Bill Anderson focus his efforts going forward?A: Bill Anderson stated he looks forward to spending less time on litigation and more time on fully harnessing the power of the new operating model, particularly at its intersection with AI. The goal is to reinvent every part of the business more rapidly and find incremental ways to invest in pipelines across pharma, consumer health, and Crop Science. He expressed conviction that there is significant performance improvement potential remaining in the company.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.