Bayer AG: Solid Q3 Earnings, But Still A 'Prove-It' Story

Bayer A.G. maintains a 'Hold' rating after a robust Q3, with Pharma outperforming expectations and driving operating leverage. Q3 Pharma EBITDA before special items rose 23.6% to 1.292 billion euro, with margins improving to 27.6% from 24.1%. Core free cash flow guidance (ex-settlements) was upgraded to €3–4 billion, with settlement outflows peaking in 2026 and tapering thereafter.