Bayer AG (BAYRY) delivered a solid third quarter on Wednesday, with adjusted earnings climbing to 17 cents per ADS (57 cents in euros) from just 7 cents a year ago (24 cents in euros). Sales hit $11.29 billion, comfortably ahead of the $10.93 billion consensus estimate.

The German conglomerate's group sales reached 9.660 billion euros in Q3 2025, up 0.9% on a currency- and portfolio-adjusted basis. The story gets more interesting when you break down where the growth is actually coming from.

Agricultural Business Shows Strength

The Crop Science division posted sales of 3.858 billion euros, up 1.3% for the quarter. The real star here was Corn Seed & Traits, which jumped 22.4% thanks to higher volumes across all regions. When your corn business is growing at that clip, you're doing something right.

Meanwhile, the Pharmaceuticals division generated 4.335 billion euros in sales, a modest 0.4% increase. The growth drivers remain consistent: Nubeqa, the company's prostate cancer treatment, and Kerendia, which treats chronic kidney disease associated with type 2 diabetes and heart failure.

Consumer Health tells a different story. Sales increased 2% to 1.415 billion euros, but that growth masks some headwinds. The division is facing what Bayer describes as an "increasingly challenging environment" in North America and Asia-Pacific. Dermatology, Digestive Health, and Pain & Cardio categories performed well, but Allergy & Cold sales dropped 7.8%.

Adjusted EBITDA rose 20.8% to 1.511 billion euros, driven primarily by the agricultural business.

The Glyphosate Problem Isn't Going Away

Here's where things get complicated. Bayer announced Wednesday that it reached several glyphosate-related settlements, which predictably led to a moderate increase in new case filings. This is the unfortunate reality of mass tort litigation—settle some cases, and more people line up.

The update forced Bayer to add 1.06 billion euros in additional provisions and absorb higher litigation costs. As a result, the company now expects a 2025 adjusted EBITDA loss of 3.5 billion to 4 billion euros, compared to its previous forecast of a 2.5 billion to 3.5 billion euro loss. The adjusted EBIT loss estimate also worsened to 2.5-3 billion euros from 1.5-2.5 billion euros.

CEO Bill Anderson tried to strike an optimistic tone despite the increased provisions. He highlighted the resilience of the agricultural business and pharma division while acknowledging Consumer Health's struggles. "Overall, in a pivotal year, we're in a strong position to deliver the 2025 Group guidance we upgraded last quarter," Anderson said.

On the litigation front, Anderson expressed confidence that Bayer can significantly contain the risk by the end of 2026. "Overall, we know that we have a crucial and highly dynamic phase ahead of us," he explained. Translation: buckle up.

Price Action: BAYRY stock was down 6.13% at $8.40 on Wednesday.