Bayer AG expects flat 2026 profits as it battles generic competition for blockbuster drugs and fights to contain a costly US Roundup pesticide litigation. The German company forecast adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between €9.6 billion and €10.1 billion ($11.1 billion to $11.7 billion) for 2026, roughly matching analyst expectations and last year's figure. This outlook comes after Bayer proposed a $7.25 billion US class-action settlement aimed at resolving cancer claims linked to its Roundup weed killer, a plan currently facing significant challenges.

Litigation costs remain a major burden, with Bayer increasing its provision to €11.8 billion. The company anticipates settlement payments will cause negative free cash flow of between minus €2.5 billion and minus €1.5 billion this year. This legal overhang stems from the 2018 Monsanto acquisition and has already cost Bayer over $10 billion in verdicts and settlements. Beyond litigation, Bayer faces steeper-than-expected sales declines for its Xarelto blood thinner and Eylea eye medicine due to generic competition.

While pharmaceuticals division sales rose in 2025 thanks to strong growth in kidney therapy Kerendia and cancer drug Nubeqa, agricultural and consumer health units struggled. The agricultural business saw slight sales growth, but consumer health posted flat sales and declining earnings amid weakness in the US and China and a soft allergy season in North America.