STOCKS | Bayer Beats Q3 Revenue and Profit Estimates, Raises 2026 Earnings and Cash Flow Guidance

On November 3, Bayer reported third-quarter revenue up 4.1% year over year to €10.05 billion, above the €9.92 billion market estimate, while EBITDA excluding special items rose 6.9% to €1.62 billion, beating analysts’ €1.43 billion estimate. According to Sina Finance, Bayer raised its 2026 full-year EBITDA forecast, adjusted for currency effects, to €9.8 billion–€10.3 billion from €9.6 billion–€10.1 billion, and raised its free cash flow outlook to a deficit of €500 million–€1.5 billion from €1.5 billion–€2.5 billion. The company also lowered its year-end net financial debt forecast to €28 billion–€29 billion from €29 billion–€30 billion. Third-quarter pharmaceutical revenue grew 8% to €4.68 billion, and the segment’s EBITDA excluding special items rose 23.6% to €1.29 billion. CEO Bill Anderson said the business’s growth trend had reached a turning point. Bayer raised its full-year pharmaceutical EBITDA margin outlook to 25%–27% from 23%–25%. Despite improved operating performance, Bayer posted a third-quarter net loss of €672 million, narrower than the €963 million loss a year earlier but wider than the €242 million market estimate. The company recorded a €307 million impairment charge for its Xofigo drug brand and €407 million in special charges. Core earnings per share fell to a loss of €0.31 from earnings of €0.49 a year earlier, below the market estimate of earnings of €0.36, partly reflecting noncash charges related to interest-rate changes. Third-quarter free cash flow was negative €293 million, compared with positive €596 million a year earlier, partly because the company made larger payments to resolve legal disputes. At the end of the quarter, net financial debt stood at €31.08 billion, down from €32.71 billion a year earlier, mainly following a €3 billion payment from Apollo Global Management. Bayer’s CFO said operating performance so far this year had strengthened the company’s confidence in raising its earnings, cash flow, and debt targets.