Equity Snap: Bayer (BAYN GR) Beat, focus on litigation resolution

Research evidence excerpt

Equity Snap: Bayer (BAYN GR) Beat, focus on litigation resolution

12 May 2026

Equity Snap: Bayer (BAYN GR) Equities Pharmaceuticals

Beat, focus on litigation resolution Germany

◆ Beat with underlying guidance unchanged Rajesh Kumar*

Senior Global Life Sciences & Healthcare Analyst

◆ Core EPS guidance mid-point c2% ahead of Bloomberg cons HSBC Bank plc

rajesh4kumar@hsbcib.com

+44 20 7991 1629

◆ Focus squarely on glyphosate resolution during the call

Morten Herholdt*

Global Life Sciences & Healthcare Analyst

HSBC Bank plc

Bayer (BAYN GR, EUR37.08, Buy, TP EUR60.00) morten.herholdt@hsbc.com

(Priced as of 11 May 2026) + 44 20 7992 4082

2026 guidance: 2026 guidance remains unchanged. Constant FX guidance is Yifeng Liu*,PhD

unchanged despite a solid 1Q’26 beat (largely driven by Soybeans seeds & traits that HSBC Bank plc

benefited from licensing resolution (EUR450m) and dicamba price recovery. Actual yifeng.liu@hsbc.com +44 20 7 9919355

rates guidance +2% ahead of Bloomberg consensus at mid-point of the range at

Akshata Agarwal*

EBITDA and Core EPS. Associate

Bangalore

1Q’26 was a beat, driven by Soybean: Total revenues were EUR13.4bn (-1% vs.

cons. EUR13.5bn), EBITDA before special items EUR4.5bn (+12% vs. cons. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

EUR3.9bn), Core EPS EUR2.71 (+21% vs. cons. EUR2.25). The beat was driven by not registered/ qualified pursuant to FINRA regulations

Soybeans seed & traits with solid drop-through margins on license resolution. Bear in

mind, the company changed its Core EPS calculation methodology to capture

amortisation of software now (consistent with other companies), disclosed earlier but

consensus might have to factor this in.

Key growth drivers delivered by Nubeqa EUR749m (-2.2% vs. cons. EUR766m),