Bayer AG BAYRY reported first-quarter 2026 core earnings of 79 cents per American Depositary Receipt (ADR), beating the Zacks Consensus Estimate of 64 cents. The company reported earnings of 63 cents per ADR in the year-ago quarter.
Core earnings per share of €2.71 rose 12.9% year over year, mainly due to the increase in earnings at the Crop Science Division.
Total sales in the reported quarter were $15.69 billion, which declined 2.4% on a reported basis but beat the Zacks Consensus Estimate of $15.49 billion.
On a currency and portfolio-adjusted basis, sales were up 4.1% year over year.
All growth rates mentioned below are on a year-over-year basis after adjusting for currency and portfolio changes.
BAYRY’s Q4 Results in Detail
Bayer reports under three segments, namely Crop Science, Pharmaceuticals and Consumer Health.
Crop Science sales increased 6.8% to €7.56 billion. Within this segment, Corn Seed & Traits sales surged 7.1%, driven by the resolution of a licensing agreement in North America and strong business performance in Europe/Middle East/Africa and Latin America. In the Herbicides business, sales were down 10.2% due to declines in non-glyphosate-based products in Europe/Middle East/Africa and Asia/Pacific. Additionally, sales of glyphosate-based products also decreased substantially in North America and Europe/Middle East/Africa due to customers delaying purchases.
Fungicide sales were down 10.7% year over year as the business was mainly affected by challenging market conditions in Latin America, as well as lower sales in Europe/Middle East/Africa. Soybean Seed & Traits sales more than doubled, driven by the resolution of the licensing agreement in North America and price recovery following the return of the dicamba label, along with strong volume-driven growth in Latin America. The Insecticides business decreased 8.3% as business was mainly down in Latin America amid increased competitive pressure from generics. The Vegetable Seeds business was down 12.4%, with business headwinds primarily related to shifts in demand into subsequent quarters and acreage reductions.
Shares of Bayer have gained 0.6% year to date against the industry’s 4.6% decline.
Image Source: Zacks Investment Research
The Pharmaceutical segment sales declined 0.5% to €4.25 billion as gains in Nubeqa and Kerendia were offset by significant declines for Xarelto due to patent expiration and lower Eylea sales.
Sales of the ophthalmology drug Eylea decreased 20.5% to €623 million, impacted by competitive and pricing pressure from generics.
Nonetheless, the launch of Eylea 8 mg, which allows for extended treatment intervals, helped partially offset the decline and supported overall sales. Eylea 8 mg accounted for around 46% of overall Eylea sales.
Bayer’s HealthCare unit co-develops Eylea with Regeneron REGN, which records net product sales of Eylea and Eylea 8 mg in the United States. BAYRY records net product sales of Eylea outside the country. REGN records its share of profits and losses from the sale of Eylea outside the United States.
Nubeqa (for cancer) sales surged 57.1% to €749 million, recording gains in all regions.
Sales of oral anticoagulant Xarelto, co-developed with Johnson & Johnson JNJ, plunged 40.4% to €364 million due to competitive pressure from generics, especially in Europe.
In the U.S. market, Xarelto is marketed by J&J. Bayer earns license revenues from JNJ for Xarelto sales in the United States.
Sales of the Mirena product family (long-term contraceptive) decreased 2.7%.
Kerendia sales (for the treatment of chronic kidney disease associated with type 2 diabetes and heart failure) skyrocketed 84.2%, fueled by a substantial rise in volumes in the United States and China.
Sales of Aspirin Cardio and Stivarga declined 28.5% and 17.4%, respectively, with business primarily down in China.
Consumer Health sales were up 5.3% to €1.49 billion in the first quarter, with business mainly up in the Nutritionals (+12.5%) and Dermatology (+9.6%) categories. On a regional level, sales advanced in Europe/Middle East/Africa, Latin America and Asia/Pacific. Sales in the Allergy & Cold category remained mostly flat as higher allergy product sales, driven by growth of Claritin in the United States and Asia/Pacific, were offset by weaker cough and cold sales amid a soft cold season in the United States and Europe/Middle East/Africa. Pain & Cardio product sales increased 5.4%, mainly fueled by higher Actron volumes and prices in Latin America. However, the Digestive Health business sales declined 4.2%, with the business mainly impacted by customers in China adapting their ordering behavior as a result of market consolidation.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
Bayer Aktiengesellschaft price-consensus-eps-surprise-chart | Bayer Aktiengesellschaft Quote
BAYRY Reiterates Currency-Adjusted 2026 Guidance
On a currency-adjusted basis, Bayer expects to generate sales in the range of €45-€47 billion in 2026. For the Crop Science Division, it expects currency and portfolio-adjusted sales growth to be flat to +3%. For the Pharmaceuticals Division, Bayer expects currency and portfolio-adjusted sales growth to be flat to +3%. Consumer Health sales growth is projected to be flat to +4%.
Core EPS is projected to be in the band of €4.30-€4.80.
Bayer’s Zacks Rank & Stock to Consider
BAYRY currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the biotech sector is Amarin Corporation AMRN, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Amarin’s 2026 loss per share have narrowed from $7.01 to $6.36. Over the same period, loss per share estimates for 2027 have also narrowed from $5.50 to $4.64. AMRN shares have risen 7.6% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 50.02%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
Amarin Corporation PLC (AMRN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
