Bausch Health Cos (NYSE:BHC) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Bausch Health beat Q1 estimates, reporting $0.78 EPS versus a $0.67 consensus and delivering roughly 14% revenue growth and 17% adjusted EBITDA growth, marking its 12 consecutive quarters of year‑over‑year revenue and adjusted EBITDA expansion with management reaffirming full‑year guidance.
• The company warned of material downside risk to future cash flow from its Xifaxan/Salix franchise, expecting a generic entrant by January 1, 2028 and a gross‑to‑net accrual adjustment effective January 1, 2027.
• Balance‑sheet trends improved as net debt (ex‑Bausch + Lomb) fell by about $150 million and U.S. opt‑out litigation payments concluded, while Solta’s China performance (Solta revenue +51%, China +193% post‑acquisition) boosted results; analysts nevertheless maintain mixed ratings with a consensus price target near $8.

Bausch Health Cos (NYSE:BHC - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.11, Zacks reports. Bausch Health Cos had a return on equity of 875.00% and a net margin of 1.53%.

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

• Bausch Health (ex-Bausch + Lomb) reported a strong Q1 with 12 consecutive quarters of year-over-year revenue and adjusted EBITDA growth, revenue up ~14% (reported) and adjusted EBITDA up 17%, and management reaffirmed full‑year guidance.
• Growth was led by Xifaxan/Salix, but management reiterated risk around exclusivity—expecting a generic entrant by 1/1/2028 and a gross‑to‑net accrual adjustment effective 1/1/2027—creating downside risk to future cash flow and valuation.
• Solta delivered exceptional results driven by China after the December 2025 Shibo acquisition (reported Solta revenue +51%, China +193%), with integration cited as a durable competitive advantage for capital sales and consumables.
• Cash generation and deleveraging improved in Q1—net debt (ex-Bausch + Lomb) fell by ~$150 million, adjusted operating cash flow was strong, and U.S. opt‑out litigation payments concluded, supporting capital‑structure priorities.
• R&D and BD focus includes a U.S.-only, earlier‑randomized, highly powered larsucosterol Phase III program and continued screening of late‑stage/commercial assets; these could be value‑creating but remain execution‑ and trial‑outcome dependent.

Bausch Health Cos Stock Performance

Bausch Health Cos stock traded down $0.08 during mid-day trading on Wednesday, reaching $5.60. 1,599,717 shares of the stock traded hands, compared to its average volume of 1,974,730. The stock has a market capitalization of $2.09 billion, a PE ratio of 13.32 and a beta of 0.40. The company has a debt-to-equity ratio of 54.68, a current ratio of 1.47 and a quick ratio of 1.08. Bausch Health Cos has a 12-month low of $4.41 and a 12-month high of $8.69. The business's 50-day moving average is $5.52 and its 200-day moving average is $6.20.

Institutional Trading of Bausch Health Cos

Hedge funds have recently bought and sold shares of the company. Headlands Technologies LLC purchased a new stake in Bausch Health Cos during the fourth quarter valued at $221,000. NewEdge Advisors LLC purchased a new stake in Bausch Health Cos during the second quarter valued at $218,000. Aristides Capital LLC purchased a new stake in Bausch Health Cos during the fourth quarter valued at $199,000. Jones Financial Companies Lllp increased its position in Bausch Health Cos by 1,548.9% in the first quarter. Jones Financial Companies Lllp now owns 24,965 shares of the company's stock worth $162,000 after buying an additional 23,451 shares in the last quarter. Finally, Brooklyn Investment Group purchased a new stake in Bausch Health Cos in the fourth quarter worth about $147,000. Hedge funds and other institutional investors own 78.65% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Royal Bank Of Canada decreased their price target on Bausch Health Cos from $10.00 to $9.00 and set a "sector perform" rating for the company in a research note on Monday. Truist Financial boosted their price target on Bausch Health Cos from $7.00 to $8.00 and gave the stock a "hold" rating in a research note on Wednesday, January 7th. Raymond James Financial restated a "market perform" rating on shares of Bausch Health Cos in a research note on Monday, January 26th. Wall Street Zen cut Bausch Health Cos from a "strong-buy" rating to a "buy" rating in a research note on Sunday, February 15th. Finally, Barclays decreased their price target on Bausch Health Cos from $8.00 to $7.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 25th. Four equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $8.00.

About Bausch Health Cos

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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