Bausch Health Cos (NYSE:BHC) Announces Quarterly Earnings Results, Beats Expectations By $0.52 EPS

Key Points

• Q3 earnings exceeded expectations: Bausch Health reported adjusted EPS of $1.77, beating consensus by $0.52, while revenue reached approximately $2.9 billion. Adjusted EBITDA rose 32% to $1.305 billion, extending the company’s growth streak to 14 consecutive quarters.
• Guidance and balance-sheet actions improved sentiment: Management raised its 2026 revenue, EBITDA and operating-cash-flow outlook for the second consecutive quarter, reduced net debt by $521 million, and authorized debt and share repurchases.
• Near-term risks remain: XIFAXAN-related gross-to-net adjustments and inventory normalization could significantly pressure fourth-quarter growth and reduce 2027 revenue by an estimated $400 million–$500 million. Solta also saw a 4% third-quarter organic revenue decline amid weaker Chinese demand and market saturation in Korea.

Bausch Health Cos (NYSE:BHC - Get Free Report) announced its earnings results on Wednesday. The company reported $1.77 EPS for the quarter, topping the consensus estimate of $1.25 by $0.52, reports. The firm had revenue of $2.90 billion for the quarter, compared to analysts' expectations of $2.72 billion. Bausch Health Cos had a negative return on equity of 561.95% and a negative net margin of 10.12%.

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

• Strong third-quarter performance: Bausch Health, excluding Bausch + Lomb, reported 12% revenue growth to $1.566 billion and record quarterly Adjusted EBITDA of $1.022 billion, extending its streak to 14 consecutive quarters of year-over-year revenue and EBITDA growth.
• Robust cash generation enabled the company to reduce net debt by $521 million in the quarter and more than $1 billion year to date. Management also announced plans for up to $100 million of open-market debt repurchases and a $50 million share repurchase program.
• Management raised full-year 2026 guidance for the second consecutive quarter, with revenue now expected at $5.0 billion-$5.625 billion, Adjusted EBITDA at $3.225 billion-$3.275 billion, and adjusted cash flow from operations at $1.6 billion-$1.675 billion.
• Fourth-quarter results face significant XIFAXAN-related headwinds as the company adjusts gross-to-net accruals ahead of the January 2027 Medicare price change and assumes channel-inventory normalization. Management indicated the combined impact could reduce quarterly revenue growth by at least 1,100 basis points, with an estimated $400 million-$500 million year-over-year impact in 2027.
• Solta’s year-to-date organic revenue growth was 8%, but third-quarter organic revenue declined 4% amid softer Chinese consumer spending, local competition, and a relatively saturated Korean market. Management expects reported and organic growth to improve in the fourth quarter, supported by the China distributor integration and stronger consumables demand.

Bausch Health Cos Stock Up 30.3%

Shares of BHC traded up $2.10 during mid-day trading on Thursday, hitting $9.02. 19,179,705 shares of the company's stock traded hands, compared to its average volume of 2,569,605. The business's 50-day moving average price is $6.17 and its 200-day moving average price is $5.71. The firm has a market capitalization of $3.38 billion, a P/E ratio of -3.03 and a beta of 0.37. Bausch Health Cos has a 1 year low of $4.33 and a 1 year high of $8.95.

Bausch Health Cos News Summary

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

• Positive Sentiment: Strong earnings and revenue beat: Third-quarter revenue reached $2.94 billion, up 10% year over year and above analyst estimates. Adjusted earnings per share were $1.77, compared with a $1.25 consensus estimate and $1.16 a year earlier. BHC Q3 Earnings Beat on Salix Growth, Stock Gains 9% as Outlook Rises
• Positive Sentiment: Salix growth drove momentum: The Salix business, including Xifaxan, contributed to revenue growth, while consolidated adjusted EBITDA rose 32% to $1.305 billion. Bausch Health also reported its fourteenth consecutive quarter of year-over-year revenue and adjusted EBITDA growth. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: 2026 outlook raised: Management increased its full-year revenue, adjusted EBITDA and adjusted operating cash-flow guidance, reinforcing expectations for continued operating improvement. The company generated $581 million in operating cash flow and $539 million in adjusted cash flow during the quarter. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: Debt reduction and buyback support sentiment: Bausch Health Americas plans to redeem approximately $643 million of 8.5% senior notes due 2027 using cash on hand, which could reduce interest costs and refinancing risk. The company also authorized a $50 million share-repurchase program, primarily to offset employee-equity dilution. Bausch Health Announces Full Redemption of 8.500% Senior Notes Due 2027
• Neutral Sentiment: Options activity was unusually elevated, with investors purchasing 6,018 call options—more than double typical call volume—suggesting increased bullish speculation but not guaranteeing further gains.
• Negative Sentiment: The company continues to carry significant financial risk, including a history of negative net margin and highly negative return on equity. Redeeming debt with cash may improve leverage but reduces near-term liquidity.

Insiders Place Their Bets

In related news, insider Aimee Lenar sold 36,827 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $7.03, for a total value of $258,893.81. Following the transaction, the insider directly owned 334,853 shares of the company's stock, valued at approximately $2,354,016.59. This trade represents a 9.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 20.67% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on BHC. Zacks Research upgraded Bausch Health Cos from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. Royal Bank Of Canada lifted their price objective on Bausch Health Cos from $9.00 to $10.00 and gave the stock a "sector perform" rating in a research report on Thursday. Wall Street Zen upgraded shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st. Weiss Ratings raised Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. Finally, Jefferies Financial Group upgraded shares of Bausch Health Cos to a "hold" rating in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $8.33.

About Bausch Health Cos

Bausch Health Companies Inc NYSE: BHC is a multinational specialty pharmaceutical company focused on developing, manufacturing and commercializing branded, generic and over-the-counter medicines. Its portfolio serves several therapeutic areas, including gastroenterology, dermatology, neurology, ophthalmology, hospital products and other specialty-care markets.

The company markets products through businesses such as Salix Pharmaceuticals, Ortho Dermatologics, Solta Medical and its international pharmaceutical operations.

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