Bausch Health Companies (TSE:BHC) Stock Price Up 25.9% - Here's Why

Key Points

• Bausch Health shares jumped 25.9% to C$8.26 after the company reported second-quarter EPS of C$1.79 and revenue of approximately C$2.85 billion, both ahead of expectations. Trading volume was nearly five times the average session volume.
• The results showed strong operating performance, including a 120.43% return on equity, but analysts still maintain a consensus “Hold” rating. Zacks also modestly reduced its fiscal 2027 and 2028 EPS estimates.
• Significant risks remain, including a negative net margin and highly leveraged balance sheet, which could constrain the stock’s upside despite the positive quarterly performance.

Bausch Health Companies Inc. (TSE:BHC - Get Free Report) shares rose 25.9% during mid-day trading on Thursday . The stock traded as high as C$8.50 and last traded at C$8.26. Approximately 2,448,423 shares traded hands during trading, an increase of 398% from the average session volume of 491,244 shares. The stock had previously closed at C$6.56.

More Bausch Health Companies News

Here are the key news stories impacting Bausch Health Companies this week:

• Positive Sentiment: Second-quarter earnings and revenue beat expectations. Bausch Health reported quarterly EPS of C$1.79 and revenue of approximately C$2.85 billion. The stronger-than-expected results, particularly the revenue performance, appear to be the primary reason investors bid the stock higher. Bausch Health Rises After Q2 Earnings, Revenue Beat Estimates
• Positive Sentiment: The earnings release showed meaningful operating performance. The company reported a positive return on equity of 120.43%, while full-year analyst expectations remain at roughly C$5.55 EPS. The results may reinforce confidence that Bausch Health can continue generating earnings while managing its substantial debt burden. Bausch: Q2 Earnings Snapshot
• Neutral Sentiment: Analysts are maintaining updated forward earnings estimates. Zacks Research’s latest outlook includes estimates of $1.15 EPS for Q2 2027, $1.46 for Q3 2027, $1.32 for Q4 2027, $5.06 for fiscal 2027 and $4.26 for fiscal 2028. Investors will likely focus on whether the latest quarterly momentum can improve these longer-term expectations. What is Zacks Research's Estimate for TSE: BHC Q3 Earnings?
• Negative Sentiment: Zacks Research reduced several future EPS forecasts. The firm lowered its estimates for fiscal 2027 EPS to $5.06 from $5.10 and fiscal 2028 EPS to $4.26 from $4.34, along with modest cuts to quarterly forecasts. These revisions signal some caution about Bausch Health’s longer-term earnings growth and could limit upside if the company’s outlook does not improve.
• Negative Sentiment: Underlying financial risks remain. Although the quarter was encouraging, Bausch Health continues to report a negative net margin, and its highly leveraged capital structure remains a key risk for shareholders.

Wall Street Analyst Weigh In

Separately, Jefferies Financial Group upgraded Bausch Health Companies to a "hold" rating in a research report on Wednesday, July 22nd. Three analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Bausch Health Companies currently has a consensus rating of "Hold".

Bausch Health Companies Price Performance

The stock has a market cap of C$3.08 billion, a P/E ratio of -2.55, a price-to-earnings-growth ratio of 0.21 and a beta of 0.97. The company has a current ratio of 1.32, a quick ratio of 0.58 and a debt-to-equity ratio of -1,009.96. The company's fifty day simple moving average is C$6.96 and its 200-day simple moving average is C$7.57.

Bausch Health Companies (TSE:BHC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported C$1.79 EPS for the quarter. Bausch Health Companies had a negative net margin of 13.54% and a positive return on equity of 120.43%. The company had revenue of C$2.85 billion during the quarter. As a group, sell-side analysts forecast that Bausch Health Companies Inc. will post 5.5472637 EPS for the current year.

About Bausch Health Companies

Bausch Health Companies Inc NYSE: BHCTSX: BHC is a global diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors.

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