Q2‘26: beat leaving room for later upgrades

Research evidence excerpt

Q2‘26: beat leaving room for later upgrades

Update

August 4, 2026 06:34 AM GMT

Morgan Stanley & Co. International plc+MBayer AG | Europe Thibault Boutherin

Equity Analyst

Q2'26: beat leaving room for Thibault.Boutherin@morganstanley.comSarita Kapila +44 20 7425-9688

Sarita.Kapila@morganstanley.com +44 20 7425-1320

later upgrades Adithya Venkat

Research Associate

Adithya.Venkat@morganstanley.com +44 20 7425-2216

AlphaSignals Earnings Reaction

Bayer AG (BAYGn.DE, BAYN GY)

Strengthens our thesis Meaningful upside Modest revision higher

Pharmaceuticals | Germany

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Source: Company data, Morgan Stanley Research Industry View In-Line

Price target €65.00

Shr price, close (Aug 3, 2026) €47.12

Key Takeaways 52-WeekMkt cap, currRange(mn) €53.92-24.81€46,292

We expect Bayer shares to outperform with a sales / EBITDA / EPS beat in Q2'26

and guidance confirmed at CC

FY26 guidance reiterated at CC, slightly upgraded for FX; we see room for a

guidance upgrade on Crop and Pharma at Q3'26

Mid-point of the guidance implies +2% consensus revision on EPS, we expect

consensus upgrade given conservative guide after strong H1 performance

No major litigation update; next major event is the final hearing / fairness hearing

scheduled for 19 August 2026

Q2'26 key takeaways: Group sales beat by 2%, EBITDA before special items by 10%

and core EPS by 30%. Pharma 2% sales beat with a better product mix than

consensus expected (beat on Kerendia and Nubeqa, miss on legacy product Eylea

and Xarelto), pharma EBITDA beat 2% despite investments in new launches. Crop

Science sales beat by 3% and EBITDA by 27%; top-line supported by the return of