Frankfurt, Feb 18, 2026, 11:17 CET — Regular session
- Bayer dropped roughly 8% in Frankfurt, clawing back some of Tuesday’s litigation-fueled surge.
- Bayer’s planned $7.25 billion settlement over Roundup hasn’t cleared court yet, and claimants still have to sign on.
- Investors are eyeing cash-flow pressure set for 2026, balancing that concern with the potential to limit future legal liabilities.
Bayer dropped 8.1% to 45.33 euros on Wednesday, erasing some of the gains from the previous session. Investors had sent shares higher after Bayer detailed its approach to manage U.S. lawsuits tied to Roundup weedkiller. (Investing)
This pullback is significant. Roundup has cast a long shadow over Bayer’s valuation ever since the Monsanto acquisition, with investors reacting to every legal turn as though it hit the balance sheet, not just the headlines.
Traders are left debating if the proposed settlement really closes the book on future cases—or just stalls the process as appeals drag on and more claims pile up.
Bayer announced Tuesday that Monsanto will pay up to $7.25 billion to settle tens of thousands of lawsuits over whether Roundup caused cancer, structuring the deal as a long-term claims program with capped yearly payments spread across as many as 21 years. (Reuters)
Ingo Speich at Deka Investment, a Bayer investor, described the settlement as “costly,” but added that Bayer’s decision sharply cuts down legal risk and that the deal is welcome since it addresses future claims. (Reuters)
Not everyone’s buying it. “The settlement buys Bayer time, but without a win in the Supreme Court, a new wave of lawsuits could roll over Bayer in a few years,” said Markus Manns, portfolio manager at shareholder Union Investment. (Reuters)
The company plans to raise its provisions and litigation liabilities to 11.8 billion euros, up from 7.8 billion euros, and is signaling around 5 billion euros in litigation payouts set for 2026. For this year, Bayer is bracing for negative free cash flow — that’s what’s left after covering operations and capital expenses. (Reuters)
Bayer, in another release, disclosed it has landed an $8 billion bank loan facility to cover urgent funding requirements related to settlements and certain bond maturities. The company also moved its 2025 results and 2026 guidance announcement to March 4. CEO Bill Anderson called the deal “an essential path out of the litigation uncertainty.” (Bayer)
The legal clock is ticking. According to Reuters, the U.S. Supreme Court will take up Bayer’s appeal, with oral arguments coming at the end of April—a pivotal case for the company. Bayer maintains the suit could dramatically curb its liability, arguing that state-law failure-to-warn claims shouldn’t stand when the EPA-approved label didn’t mention cancer. (Reuters)
The settlement isn’t a done deal—judge’s sign-off is still required, plus enough claimants have to join in. Too many opt-outs, and Bayer could pull the plug. And with all that, investors are still eyeing the Supreme Court angle to see if Bayer lands the sweeping legal protection it’s aiming for.
Bayer’s March 4 results are next, with investors zeroed in on the 2026 outlook. The focus: how the company will juggle funding and timing for litigation payouts without letting leverage or credit ratings slip. (Bayer)
