Germany's Bayer Q3 sales rise on growth in pharmaceuticals division, lifts outlook

Overview

• Germany-based life sciences group's Q3 sales rose 4.1% yr/yr, adjusted EBITDA up 6.9%

• Core EPS declined, weighed by non-cash charges from interest rate changes

• Company raised full-year outlook for EBITDA, free cash flow and net financial debt

Outlook

• Bayer raises 2026 Group EBITDA before special items guidance to EUR 9.8-10.3 bln

• Company lifts 2026 free cash flow forecast to minus EUR 1.5 bln to minus EUR 0.5 bln

• Bayer expects year-end net financial debt between EUR 28.0 bln and EUR 29.0 bln

Result Drivers

• PHARMACEUTICALS GROWTH - Co said strong sales of Nubeqa and Kerendia, as well as gains in radiology and Beyonttra, drove Pharmaceuticals division growth

• CROP SCIENCE PRESSURES - Crop Science sales fell due to regulatory impacts and adverse weather in Europe/Middle East/Africa and Asia/Pacific, partly offset by strong demand for corn and soybean seeds in Latin America

• CONSUMER HEALTH MIXED - Consumer Health sales were flat as gains in Digestive Health and Dermatology were offset by declines in Nutritionals and Allergy & Cold, with regional weakness in Europe/Middle East/Africa and the US

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Bayer AG is €58.50, about 17% above its November 2 closing price of €50.02

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 2 - Hugo Boss lowers annual outlook on weak demand, higher expenses

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)