Earnings Performance of the Bayer Group¹

Third quarter of 2026

Group sales

Group sales came in at €10,053 million in the third quarter of 2026 (Q3 2025: €9,660 million; reported: +4.1%; Fx & portfolio adj.: +1.9%). There was a positive currency effect of €246 million (Q3 2025: negative currency effect of €447 million). Sales in Germany amounted to €547 million (Q3 2025: €573 million).

At Crop Science, sales were level year on year on a reported basis. Adjusted for currency and portfolio effects, sales came in below the prior-year quarter, largely due to regulatory impacts and adverse weather conditions in Europe/Middle East/Africa and Asia/Pacific. However, these headwinds were partially offset by strong growth in Latin America, which was mainly driven by increased demand for the summer season. Sales at Pharmaceuticals were up substantially, largely driven by significant gains for Nubeqa™ and Kerendia™ and sustained topline growth in our Radiology business. By contrast, sales of Eylea™ and Xarelto™ declined as expected due to patent expirations. At Consumer Health, sales were up year on year on a reported basis, and level with the prior-year quarter on a currency- and portfolio-adjusted basis. Business mainly increased in the Digestive Health and Dermatology categories, while our Nutritionals business and cough and cold products posted declines.

EBITDA before special items

Group EBITDA before special items rose by 6.9% to €1,615 million. This figure included a positive currency effect of €36 million (Q3 2025: negative currency effect of €42 million). At Crop Science, we recorded a decline in EBITDA before special items that was primarily attributable to an increase in the cost of goods sold and higher selling expenses. EBITDA before special items at Pharmaceuticals was up significantly year on year. The rise in earnings was primarily driven by topline growth, which, in turn, was mainly fueled by substantial volume gains for Nubeqa™ and Kerendia™. By contrast, we recorded an increase in selling expenses that largely related to the marketing of Lynkuet™ and Nubeqa™, as well as preparations supporting the launch of asundexian. At Consumer Health, EBITDA before special items decreased against the prior-year period, mainly due to higher investments in marketing our innovative products. In the Reconciliation, we registered a decline in EBITDA before special items that was predominantly attributable to higher expenses for the Group-wide long-term incentive (LTI) program. The Group EBITDA margin before special items came in at 16.1%.

Depreciation, amortization and impairments

Depreciation, amortization and impairment losses – net of impairment loss reversals – resulted in expense of €1,553 million (Q3 2025: €1,005 million) in the third quarter. This figure comprised €1,102 million (Q3 2025: €568 million) in amortization and impairments on intangible assets, and €451 million (Q3 2025: €437 million) in depreciation and impairments on property, plant and equipment.

In the Pharmaceuticals Division, it became necessary to record an impairment loss of €307 million on intangible assets relating to the Xofigo™ brand. The impairment loss was based on revised future sales projections and a re-evaluation of long-term business expectations for therapies that are not yet on the market.

In the Consumer Health Division, it likewise became necessary to conduct impairment testing for the Claritin™ brand following an increase in the weighted average cost of capital. Reflecting revised expectations for its business performance, we recorded an impairment loss of €215 million for Claritin™. This amount is included in the figure for amortization and impairments on intangible assets given above, and is reported as a special charge.

EBIT and special items

Group EBIT amounted to minus €110 million (Q3 2025: minus €543 million) after net special charges of €407 million (Q3 2025: €1,064 million) that primarily related to the aforementioned impairment loss in the Consumer Health Division as well as litigation-related expenses. EBIT before special items decreased by 43.0% to €297 million (Q3 2025: €521 million).

The following special items were taken into account in calculating EBIT and EBITDA:

Net income

After a financial result of minus €678 million (Q3 2025: minus €618 million), income before income taxes amounted to minus €788 million (Q3 2025: minus €1,161 million). The decline in the financial result was mainly due to an increase in expense relating to the interest portion of discounted provisions, as well as a deterioration in the balance of income and losses from investments in affiliated companies. These effects were partly offset by a decline in the net exchange loss and lower net interest expense. Including income from income taxes of €127 million (Q3 2025: €202 million) and accounting for noncontrolling interest, net income amounted to minus €672 million (Q3 2025: minus €963 million).

Core earnings per share

Core earnings per share decreased to €0.31 (Q3 2025: €0.49²), with the improvement in operational earnings performance only partially offsetting the decline in the core financial result and higher tax expense for the quarter.

Earnings per share (total) came in at minus €0.69 (Q3 2025: minus €0.98), with the difference between this figure and core EPS mainly reflecting the aforementioned impairment losses in the Pharmaceuticals and Consumer Health divisions.

Personnel expenses and employee numbers

As of the closing date, the number of employees in the Bayer Group was largely unchanged year on year, at 87,775 (–0.8%; September 30, 2025: 88,502). Personnel expenses increased by 6.3% to €2,788 million in the third quarter (Q3 2025: €2,622 million), mainly due to salary increases and our long-term stock-based incentive program.

¹ For definition of alternative performance measures see Annual Report 2025, A 2.3 “Alternative Performance Measures Used by the Bayer Group.”

² Prior-year figure based on updated methodology in effect from 2026; see section A 3.1.2 “Corporate Outlook” of the Annual Report 2025 for details.