Bayer's Quarter Wins Over Goldman and Jefferies Even as Adjusted EPS Slips Past Consensus

Bayer closed out a busy week with two brokerages lining up behind its pharmaceutical story, a fresh Chinese approval for one of its cancer drugs, and a courtroom win for its Monsanto subsidiary — a combination that lifted price targets even as one closely watched earnings metric fell short.

Goldman Sachs raised its target on the German group to EUR 66 from EUR 63.50 on Wednesday, keeping a "Buy" rating and pointing to the growth prospects of the pharma division following the quarterly results. Jefferies moved in the same direction, lifting its target to EUR 48.50 from EUR 46 while staying at "Hold." Analyst Michael Leuchten placed his forecasts at the bottom end of the company's full-year guidance range and trained his attention on the signing of the glyphosate settlement.

Pharma Leads the Quarter

The numbers behind the optimism came on Tuesday. Bayer reported third-quarter 2026 group sales of EUR 10.053 billion, a nominal increase of 4.1%. Adjusted for currency and portfolio effects, revenue rose 1.9%. EBITDA before special items climbed 6.9% to EUR 1.615 billion, with Nubeqa and Kerendia named as the main growth engines.

Guidance moved higher alongside the results. Bayer now expects a group EBITDA before special items of EUR 9.8 billion to EUR 10.3 billion for 2026, up from a prior range of EUR 9.6 billion to EUR 10.1 billion. The outlook for the Pharmaceuticals margin before special items was raised to 25–27% from 23–25%. Free cash flow guidance improved to minus EUR 1.5 billion to minus EUR 0.5 billion — still negative, but better than before. Net financial debt is projected at EUR 28.0 billion to EUR 29.0 billion for 2026.

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The figures and the raised outlook triggered a positive share price reaction on Tuesday. Adjusted earnings per share for the third quarter, however, came in below the consensus expectation, according to media reports.

A Chinese Green Light and a Missouri Verdict

The pharma pipeline delivered its own headline on Wednesday: Sevabertinib received approval in China as a first-line treatment for adults with advanced HER2-mutated non-small cell lung cancer, according to the company.

On the legal front, Bayer reported progress on October 30. Monsanto won the Aretino case before a Missouri court by a unanimous decision — the first Roundup case to be tried following the US Supreme Court's ruling, according to company statements.

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Anderson Sticks to His Playbook

Chief executive Bill Anderson said on Tuesday, according to Reuters, that a breakup of the group is not on the agenda. The focus, he said, remains on innovation and debt reduction — a message that sits comfortably with the brokers' emphasis on the drug business rather than on corporate structure.

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