JPMorgan: Bayer 2Q26 Preview: Steady results expected; guidance reaffirmation to support Vara consensus
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
JPMorgan maintains an Overweight rating on Bayer (BAYGn.DE) with a target price of EUR 50.78 ahead of its 2Q26 earnings release. The firm expects steady 2Q26 results, projecting group sales of EUR 10.69 billion, broadly in line with the Bloomberg consensus of EUR 10.72 billion. Adjusted EBITDA is forecast at EUR 1.94 billion, slightly below the consensus of EUR 1.96 billion, while core EPS is anticipated at EUR 0.73 versus a consensus of EUR 0.76.
Segment performance indicates mixed dynamics. In Pharmaceuticals, strong growth from Nubeqa and Kerendia is expected to offset continued revenue declines from Xarelto and Eylea. The Crop Science division should see herbicide and cotton growth mitigating seasonal declines in corn and soybeans. Consumer Health is projected to deliver stable growth of approximately 2%.
JPMorgan expects management to reaffirm its FY2026 guidance during the upcoming earnings call. This includes group sales growth of 0-3% on a currency-adjusted basis, adjusted EBITDA growth between -1% and +4%, and core EPS guidance around EUR 4.30-4.80. With the latest Vara consensus sitting near the midpoint of these ranges—projecting a core EPS of EUR 4.32—JPMorgan does not anticipate significant market reactions or consensus revisions following the report.
The earnings release is scheduled for August 4, 2026. JPMorgan views the stock's risk-reward profile favorably, supported by stable quarterly execution and visible pipeline catalysts.