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Bayer raises 2026 profit outlook as pharma business beats expectations

By Thomson Reuters Nov 3, 2026 | 1:56 AM

By Tristan Veyet and Patricia Weiss

Nov 3 (Reuters) – German pharmaceuticals and agriculture group Bayer raised its 2026 profit outlook on Tuesday, citing a better-than-expected performance at the company’s pharmaceuticals business ​in the third quarter.

The upgrade sent Bayer’s shares up ‌5% by 1044 GMT.

Bayer has been weighed down by heavy debt since its $63 billion acquisition of Monsanto in 2018, a deal that also burdened the group with costly litigation relating to Monsanto’s weedkiller Roundup.

The company now expects full-year adjusted core ‌earnings, ​on a currency-adjusted basis, to total between €9.8 ⁠billion and €10.3 billion ($11 billion and ⁠11.5 billion), from a previously expected range of €9.6 billion and €10.1 billion.

Bayer’s pharmaceuticals business posted sales of €4.68 billion in the third quarter, 5% above analysts expectations in a poll by Vara Research.

“We’ve reached ​a turning point in Pharma’s growth trajectory and we’re beginning to see the other side,” Chief Executive Bill Anderson said in a ⁠statement.

The company reported third-quarter earnings before ⁠interest, taxes, depreciation and amortization, adjusted for one-offs, of €1.62 ​billion, around 13% ahead of analysts’ expectations.

It cut net financial debt expectations ​for the year by €1 billion, now expecting it at between €28 ‌billion and €29 billion.

ROUNDUP SETTLEMENT EXPECTED ANY WEEK NOW

Anderson also said that Bayer expects a $7.25 billion settlement on its Roundup weedkiller to come before Christmas.

“We’re expecting an approval from the court,” Anderson said in a ⁠press call.

“It could be any week now,” he added.

Bayer is seeking to resolve tens of thousands of claims in US state and federal courts from ⁠plaintiffs, who say ‌they developed cancer after using Roundup. The settlement ⁠is under review by a Missouri state court judge ​in ‌St. Louis.

“Judicial approval of the proposed glyphosate settlement ​is expected by ⁠the end of the year. This should then largely reduce Bayer’s litigation risks, allowing management to refocus fully on operational and strategic issues,” Markus Manns, portfolio manager at Frankfurt-based Union Investment, said.

(Reporting by Tristan Veyet in Gdansk, Patricia Weiss in Frankfurt, editing by Linda Pasquini, Louise Heavens ​and Susan Fenton)