Bayer AG Shares (BAYN) Gain As Sales Forecast Raised

Bayer AG shares (ETR:BAYN) are moving higher this morning as the company updated its 2025 sales outlook, projecting annual revenue between €46 billion and €48 billion, an increase of €1 billion at both ends of the previous guidance.

Simultaneously, the pharmaceutical and biotechnology conglomerate announced an additional €1.2 billion provision for ongoing U.S. litigation related to its Roundup herbicide. Full quarterly earnings are set for August 6th, yet early indications on the outlook have been well received by markets.

The Bayer share is currently trading at €27,74, a 1.39% gain through the first hour of trading. Over the past week however, the stock has pulled back 6.67%. Despite this short-term dip, a technical analysis suggests a potential continuation of a short-term rising trend, one that has seen BAYN gain 42% since the start of 2025.

The raised sales forecast is primarily attributed to strong performance within Bayer's Pharmaceuticals division. The company anticipates adjusted EBITDA for 2025 to fall between €9.7 billion and €10.2 billion. Preliminary second-quarter sales are estimated at €10.7 billion, with EBITDA before special items around €2.1 billion.

However, the shadow of the Roundup litigation continues to loom large. The additional €1.2 billion provision brings the total allocated for these legal matters to roughly €6.5 billion. Bayer has settled or deemed ineligible 131,000 out of 192,000 claims, leaving approximately 61,000 unresolved. The company is actively defending itself in court and pursuing appeals against adverse verdicts.

Bayer is also implementing strategic initiatives to bolster its financial position and operational efficiency. The company has reduced its net financial debt to €32.6 billion and is aiming for €800 million in savings as part of a larger €2 billion organizational savings goal by 2026.

These efforts include streamlining management structures and empowering employees with greater decision-making authority. In its Crop Science division, Bayer is targeting above-market growth, aiming for €3.5 billion in incremental sales by 2029, alongside an EBITDA margin improvement to the mid-20s.