Bayer share price has bounced back this year, making it one of the best-performing companies in the German DAX Index. It has jumped to €26, up by 45% from its lowest point this year. It remains 75% below its all-time high, which it got to in 2025.
Why Bayer share price has jumped
Bayer stock price has rallied recently after the company published encouraging results last month. Its numbers were better than expected, helped by its cancer and kidney business, which helped to offset a big drop in agricultural sales.
The data showed that its adjusted earnings came in at €4.09 billion in the first quarter. While this was a big drop from what it made last year, it was higher than the median estimate of €3.8 billion.
Bayer’s sales dropped slightly to €13.7 billion last quarter, with its crops division falling by 4.1% to €7.9 billion. This decline happened as farmers reduced their spending as commodity prices fell.
Bayer’s pharmaceutical segment grew by 4.4% to €4.35 billion, with its earnings before interest, tax, depreciation, and amortization (EBITDA) rising by over 11% to over €1 billion.
Bayer’s consumer health’s revenue also jumped by 4.7% last quarter to €1.4 billio, with its EBITDA soaring by 3.7% to €322 million.
Its stock also jumped as the company continued its cost-cutting measures and confirmed its forward guidance. It ended the quarter with over 90,880 employees, down by 7.4% from the same period last year. This decline helped to reduce its employee-related expenses by 0.4% to €3.02 billion.
In total, the company slashed workers by 2,000 in the first quarter, and has now shed over 11,000 since its turnaround started.
Bayer stock price has also jumped as the company continued to prioritize its debt, most of which came from its Monsanto acquisition. As part of this approach, the company has largely paused making large buyouts this year. It ended the last quarter with over €38 billion in total debt.
Challenges remain
While Bayer share price has rebounded, analysts believe that it faces more challenges ahead. The biggest challenge is that its crop science business is not expected to return to growth this year, now that most agricultural commodities have plunged.
Donald Trump’s tariffs could impact the company on imported goods since the US is one of its top markets. In its recent statement, the company anticipated that its sales will be between €44.5 billion and €46.5 billion, with its EBITDA falling again to between €9.2 billion and €9.7 billion.
A key aspect to note is that the company is also highly exposed to the strong euro, which has jumped to the highest level in years.
The other challenge is that the Roundup crisis continues. It has set aside about €16 billion to handle the claims, and has already paid €10 billion of it. Analysts are optimistic that the company will move forward once the crisis ends. An HSBC analyst said:
“Once the litigation overhang is cleared, the company may be better able to present a strategy to shareholders to de-gear the balance sheet, which could enable it to invest in its pharma pipeline.”
Bayer stock price analysis
The daily chart shows that the Bayer share price bottomed at €18.20 and formed a double-bottom pattern. It has now moved above the neckline at €25.32, the highest swing on March 5.
Bayer stock has also formed a bullish flag pattern, a popular bullish sign in technical analysis. It has also formed a golden cross as the 50-day and 200-day moving averages have crossed each other.
Therefore, the stock will likely have a bullish breakout, with the next point to watch being at €30, up by 16% above the current level. A move above that level will point to more gains, potentially to €50.
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