Bayer Shares Climb After Earnings Beat Expectations

By Adria Calatayud

Bayer shares jumped after the German agricultural-and-pharmaceutical group reported first-quarter adjusted earnings that exceeded analysts' expectations mainly thanks to a strong performance at its agricultural division.

Shares in Bayer rose as much as 6.9% in European morning trading Tuesday, in a session with broad-based losses across European stocks due to worries about the Middle East conflict.

The company said first-quarter earnings before interest, taxes, depreciation and amortization excluding special items rose 9% to 4.45 billion euros ($5.24 billion), with growth in its agricultural division offsetting declines in pharma and consumer health. Analysts expected the metric at 3.93 billion euros, according to consensus estimates compiled by Vara Research.

The results come as Bayer awaits the outcome of Chief Executive Bill Anderson's efforts to contain litigation over its Roundup weedkiller this year, after longrunning legal battles made the company book multibillion-dollar provisions and weighed on its share price following its takeover of Monsanto.

Bayer earlier this year proposed a $7.25 billion settlement to resolve claims that its flagship herbicide causes cancer, which the company denies, and is simultaneously pursuing a case before the U.S. Supreme Court. With the fate of both legal paths expected to be decided in the coming weeks, Anderson said on a call with reporters that the company would be ready to handle any outcome.

Executives at the company said the group's businesses started the year in line with their expectations, and that they expected current full-year guidance ranges to cover potential hits from the Middle East conflict.

"We're in a good position to confirm our 2026 outlook," Anderson said. "At the same time, it's early. We know that the world around us is volatile and we'll have to stay vigilant."

Bayer reported a first-quarter net profit of 2.76 billion euros compared with 1.30 billion euros for the same period last year, when its results were hit by litigation provisions. The company also said it booked net special gains of 324 million euros mainly linked to the sale of its Avelox antibiotics business.

The increase in the group's underlying earnings was driven by its agricultural arm, which benefited from higher sales seed and traits and a contribution from a licensing agreement with Corteva in North America coupled with gains from a restructuring program.

Quarterly sales were 13.405 billion euros, up 4.1% when excluding currency and portfolio changes. Analysts had forecast sales at 13.42 billion euros, according to consensus estimates compiled by Vara Research.

Bayer reported organic growth in its agricultural and consumer-health businesses that offset a decline in its pharma division.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 12, 2026 07:24 ET (11:24 GMT)