Bayer’s latest quarterly results have left investors divided, as a surprise €2.1 billion adjusted operating profit—boosted by a €150 million windfall from selling a soccer talent—masked deeper struggles. The stock plummeted nearly 10% to €25.88 amid concerns over core business performance, with currency headwinds from a weaker U.S. dollar and volatility in Brazil and China forcing a revenue forecast cut to €44–46 billion. Patent expirations for key drugs like Xarelto and mounting legal liabilities, including €1.2 billion in new glyphosate provisions (totaling €6.3 billion), further cloud the outlook.
Legal and Financial Pressures Mount
CEO warnings of a potential U.S. glyphosate production halt and a €199 million Q2 net loss—up sharply from €34 million a year prior—intensified bearish sentiment. Despite a 38% year-to-date stock gain, analysts flagged underperformance in pharma due to higher investments. With 61,000 pending lawsuits and additional PCB-related provisions of €530 million, Bayer’s path to stability remains fraught, though leadership insists on curbing legal risks by 2026.
