Bayer AG stock (DE000BAY0017): Crop science and pharma drive earnings recovery in 2025

Bayer AG reported improved 2025 earnings, led by crop science and pharmaceuticals, as the company works through legacy liabilities and US litigation.

Bayer AG reported its 2025 full?year results on February 27, 2026, showing a recovery in underlying earnings after several years of pressure from litigation and restructuring, according to Bayer investor relations as of 02/27/2026. Core earnings before interest, taxes and special items rose to 10.1 billion euros, up from 8.7 billion euros in 2024, while group sales increased to 49.6 billion euros, reflecting mid?single?digit growth at constant currencies. The improvement was driven by the Crop Science and Pharmaceuticals divisions, which both posted higher sales and operating profit, even as the company continues to manage legacy liabilities and US litigation around glyphosate and other products.

As of: 08.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Bayer AG
• Sector/industry: Healthcare and agriculture
• Headquarters/country: Leverkusen, Germany
• Core markets: Europe, North America, Asia
• Key revenue drivers: Pharmaceuticals, crop protection, seeds and digital farming
• Home exchange/listing venue: Frankfurt Stock Exchange (ticker: BAYN)
• Trading currency: Euro

Bayer AG: core business model

Bayer AG operates as a global life?science company with two main pillars: Pharmaceuticals and Crop Science, plus a smaller Consumer Health business that was spun off in 2024. The Pharmaceuticals division focuses on prescription medicines in therapeutic areas such as cardiology, oncology, women’s health and ophthalmology, selling branded specialty and primary?care products in more than 100 countries. The Crop Science division supplies seeds, crop?protection chemicals and digital farming solutions to farmers worldwide, positioning Bayer as one of the largest agrochemical and seed companies globally. This dual?pillar model allows Bayer to balance cyclical agricultural demand with more stable pharmaceutical sales, although both segments face regulatory scrutiny and pricing pressures.

Within the Pharmaceuticals segment, Bayer relies on a portfolio of established brands and a pipeline of new compounds, including targeted therapies and biologics, to sustain long?term growth. The company invests heavily in research and development, with R&D spending in 2025 amounting to about 5.4 billion euros, or roughly 11% of group sales, according to Bayer investor relations as of 02/27/2026. In Crop Science, Bayer combines chemical crop protection with genetically modified and conventional seeds, as well as digital tools that help farmers optimize planting, fertilization and pest control. This integrated approach aims to capture value across the entire agricultural value chain, from seed to harvest.

Main revenue and product drivers for Bayer AG

In 2025, Pharmaceuticals contributed about 19.1 billion euros in sales, up 5.3% at constant currencies, driven by growth in cardiology and oncology products as well as new launches in ophthalmology, according to Bayer investor relations as of 02/27/2026. Key brands such as Xarelto (rivaroxaban) for thrombosis prevention and Eylea (aflibercept) for eye diseases remain major revenue contributors, even as patent expiries and generic competition gradually erode some older products. Bayer is countering this trend by expanding indications for existing drugs and advancing a pipeline that includes targeted cancer therapies and cardiovascular medicines, which could support future growth if they gain regulatory approval.

Crop Science was the largest division by sales in 2025, generating 23.3 billion euros, an increase of 4.1% at constant currencies, according to Bayer investor relations as of 02/27/2026. The segment benefited from higher demand for seeds and traits, particularly in North America and Latin America, as well as continued adoption of digital farming platforms. Bayer’s seed business includes corn, soybeans, cotton and vegetables, while its crop?protection portfolio covers herbicides, insecticides and fungicides. The company also emphasizes sustainability initiatives, such as reduced?risk pesticides and precision?agriculture tools, which may help it navigate tightening environmental regulations and shifting farmer preferences.

Conclusion

Bayer AG’s 2025 results indicate a gradual recovery in earnings, supported by growth in Pharmaceuticals and Crop Science, even as the company continues to address legacy liabilities and US litigation, according to Bayer investor relations as of 02/27/2026. The diversified life?science model provides exposure to both healthcare and agriculture, which can appeal to investors seeking global exposure to essential sectors. At the same time, regulatory risks, patent expiries and ongoing legal proceedings remain key uncertainties that could affect future profitability and cash flow. For US investors, Bayer offers indirect access to European healthcare and agribusiness markets through its Frankfurt listing, but the stock’s performance will depend on how effectively management balances growth investments with liability management and capital allocation.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.