Bausch Health Cos (NYSE:BHC) Posts Quarterly Earnings Results, Beats Expectations By $0.30 EPS

Key Points

• Bausch Health beat earnings expectations: Second-quarter adjusted EPS was $1.26, exceeding the $0.96 consensus, while revenue rose 13% year over year to $2.85 billion and adjusted EBITDA increased 28% to $1.075 billion.
• Management raised 2026 guidance for revenue, adjusted EBITDA and operating cash flow, supported by continued growth in Salix and Solta and strong cash generation that helped reduce net debt by $434 million during the quarter.
• Future risks remain: The company expects about $275 million in second-half revenue pressure from rebate changes, generic competition and lower Medicaid/340B volumes, while analysts remain cautious, with BHC carrying an average “Reduce” rating and an $8 target price.

Bausch Health Cos (NYSE:BHC - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $0.96 by $0.30, Zacks reports. Bausch Health Cos had a negative return on equity of 2,922.77% and a negative net margin of 11.47%.

Here are the key takeaways from Bausch Health Cos' conference call:

• Strong Q2 performance: Bausch Health, excluding Bausch + Lomb, reported revenue of $1.458 billion, up 16% year over year, while adjusted EBITDA rose 28% to $865 million. The company cited its 13th consecutive quarter of revenue and EBITDA growth.
• Raised 2026 guidance: Management increased its full-year revenue guidance to $5.35 billion–$5.50 billion, adjusted EBITDA guidance to $3.025 billion–$3.10 billion, and adjusted operating cash flow guidance to $1.40 billion–$1.475 billion.
• Salix and Solta drove growth: Salix revenue increased 21%, led by a 26% increase in XIFAXAN revenue and favorable net pricing. Solta revenue rose 38% reported and segment profit increased 69%, with China revenue up 136% following the integration of distributor Shibo.
• Debt reduction accelerated: Adjusted cash flow from operations rose 44% to $471 million for Bausch Health excluding Bausch + Lomb, enabling a $434 million quarterly reduction in net debt to $13.7 billion.
• Second-half headwinds remain: Management expects approximately $275 million of second-half revenue pressure from channel-related rebate changes and erosion, generic competition for Aplenzin, and reduced Medicaid/340B volumes. The company also maintained its 2027 adjusted EBITDA outlook at $2.7 billion, citing transitional 2026 benefits and uncertainty around XIFAXAN exclusivity and related litigation.

Bausch Health Cos Price Performance

Shares of BHC stock traded up $0.15 during trading hours on Wednesday, hitting $4.67. The company had a trading volume of 3,642,212 shares, compared to its average volume of 2,114,559. Bausch Health Cos has a 12 month low of $4.33 and a 12 month high of $8.69. The firm has a market capitalization of $1.75 billion, a price-to-earnings ratio of -1.44 and a beta of 0.42. The firm's fifty day moving average is $4.97 and its 200 day moving average is $5.49. The company has a debt-to-equity ratio of 54.68, a quick ratio of 0.97 and a current ratio of 1.32.

Key Bausch Health Cos News

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

• Positive Sentiment: Bausch Health reported second-quarter revenue of $2.85 billion, up 13% year over year on a reported basis and 11% organically. Adjusted diluted EPS rose 40% to $1.26, while adjusted EBITDA increased 28% to $1.075 billion. The company also recorded $258 million in GAAP net income attributable to Bausch Health, compared with a loss-related comparison implied by the prior period. Bausch Health Announces Second Quarter 2026 Results, Raises Guidance
• Positive Sentiment: The company raised its full-year 2026 revenue, adjusted EBITDA and adjusted cash-flow-from-operations guidance. Bausch Health, excluding Bausch + Lomb, delivered its 13th consecutive quarter of year-over-year revenue growth, supported by a 16% reported revenue increase and 28% adjusted EBITDA growth.
• Positive Sentiment: Cash generation was solid, with $517 million in operating cash flow and $471 million in adjusted cash flow from operations. These results could help support debt management and improve investor confidence in the company’s highly leveraged balance sheet.
• Neutral Sentiment: Bausch Health was expected to report its second-quarter results on Wednesday, July 29, making the earnings release the primary near-term catalyst for BHC.
• Negative Sentiment: Zacks Research lowered its EPS forecasts across several future periods, including Q2 2027 to $0.81, FY2027 to $3.59, and FY2028 to $3.02. The firm also reduced estimates for Q3 and Q4 2027 and Q1 2028, and maintains a “Strong Sell” rating. The revisions suggest analysts remain cautious about the durability of future earnings growth despite the strong current quarter.

Insider Transactions at Bausch Health Cos

In related news, Director Frank D. Lee sold 24,456 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $5.43, for a total transaction of $132,796.08. Following the sale, the director directly owned 49,339 shares in the company, valued at $267,910.77. This represents a 33.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Caption Management LLC lifted its stake in shares of Bausch Health Cos by 101.1% during the fourth quarter. Caption Management LLC now owns 4,464 shares of the company's stock valued at $31,000 after acquiring an additional 405,789 shares during the period. Caitong International Asset Management Co. Ltd lifted its position in Bausch Health Cos by 12,589.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,949 shares of the company's stock valued at $34,000 after purchasing an additional 4,910 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Bausch Health Cos by 6,661.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 5,409 shares of the company's stock valued at $35,000 after purchasing an additional 5,329 shares during the last quarter. Russell Investments Group Ltd. grew its position in shares of Bausch Health Cos by 65.9% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,819 shares of the company's stock worth $51,000 after buying an additional 3,106 shares during the period. Finally, Dynamic Technology Lab Private Ltd bought a new stake in shares of Bausch Health Cos during the first quarter worth approximately $68,000. 78.65% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

BHC has been the topic of several recent analyst reports. Weiss Ratings downgraded shares of Bausch Health Cos from a "sell (d)" rating to a "sell (d-)" rating in a report on Monday, May 4th. Jefferies Financial Group raised Bausch Health Cos to a "hold" rating in a research report on Wednesday, July 22nd. Zacks Research cut Bausch Health Cos from a "hold" rating to a "strong sell" rating in a research report on Friday, July 24th. Finally, Royal Bank Of Canada lowered their target price on Bausch Health Cos from $10.00 to $9.00 and set a "sector perform" rating on the stock in a report on Monday, April 27th. Five investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $8.00.

Bausch Health Cos Company Profile

Bausch Health Cos Inc, formerly known as Valeant Pharmaceuticals International, is a global specialty pharmaceutical company headquartered in Laval, Quebec, Canada. The company operates through two primary segments: Ophthalmology, led by its Bausch + Lomb franchise, and Diversified Brands, which encompasses prescription dermatology, gastrointestinal, neurology and branded pharmaceutical products. Bausch Health develops, manufactures and markets a range of therapeutic and over-the-counter offerings designed to address conditions such as cataracts, dry eye, glaucoma, acne, rosacea, migraine and gastrointestinal disorders.

The Ophthalmology segment under the Bausch + Lomb name provides products for eye health, including prescription drops, contact lens care solutions, intraocular lenses, surgical instruments and diagnostic devices.

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