Bayer CEO Bill Anderson is a professional optimist. While 2025 will still be a tough year for shareholders, 2026 and the following years are expected to be better. This is the key message Anderson wanted to convey to his investors during the latest earnings report, and the message was well received, as evidenced by the stock price.

It should be noted, of course, that Bayer shocked the finance community in November with a profit warning, and an initial outlook for 2025. As a result, there was little room left for disappointment. The outlook for the current business year is not promising. Bayer’s revenue this year is expected to remain more or less stagnant, while operating profit is projected to decline again, by between 3% and 8%. The drop in adjusted earnings per share could be even greater, with a decline of up to 16% forecast.

The pharmaceutical division has now become the biggest hope for the portfolio. While the division faces two challenging years ahead due to the patent expiration of the blood thinner Xarelto, which will significantly impact results, the outlook from the pipeline is no longer as bleak as it was a few years ago. The division aims to return to growth by 2027, with higher margins expected the following year.

The biggest concern remains the agricultural chemicals sector – not only due to the legal risks, which Anderson plans to „significantly“ address by the end of 2026. There is also a lot of operational potential in the division, as evidenced by the margin. This problem is now being actively addressed, but simply setting goals for 2029 is not enough. The results in between are what truly matter.

Anderson took office in June 2023 with the goal of getting Bayer back on a successful track. That this won’t happen overnight is unquestionable. However, the patience of investors has been stretched thin. Bayer must deliver in 2026, or Anderson’s time as CEO could be coming to an end.