Bausch Health Cos (NYSE:BHC) Sets New 1-Year High After Better-Than-Expected Earnings

Key Points

• Bausch Health reported strong third-quarter results: Revenue rose 10% year over year to approximately $2.94 billion, while adjusted EPS of $1.77 beat estimates of $1.25 and adjusted EBITDA increased 32% to $1.305 billion.
• Management raised its full-year 2026 guidance for revenue, adjusted EBITDA and adjusted operating cash flow, citing 14 consecutive quarters of year-over-year revenue and EBITDA growth.
• Debt reduction and buybacks support the stock, but financial risks remain: The company plans to redeem about $643 million of high-cost notes and authorized a $50 million repurchase program, while maintaining a negative net margin, sharply negative return on equity and significant leverage.

Shares of Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $8.58 and last traded at $8.2580, with a volume of 3,162,068 shares changing hands. The stock had previously closed at $6.92.

The company reported $1.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.52. The firm had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.72 billion. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 561.95%.

Bausch Health Cos News Roundup

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

• Positive Sentiment: Strong earnings beat and growth: Third-quarter revenue reached $2.94 billion, up 10% year over year on a reported basis and 8% organically, while adjusted EPS of $1.77 increased 53% from $1.16 a year ago and exceeded analyst estimates. Adjusted EBITDA rose 32% to $1.305 billion. Bausch Health third-quarter 2026 results and guidance
• Positive Sentiment: Guidance raised: Management increased its full-year 2026 revenue, adjusted EBITDA and adjusted cash-flow-from-operations outlook, reinforcing the company’s report of 14 consecutive quarters of year-over-year revenue and adjusted EBITDA growth. Bausch Health surpasses third-quarter estimates
• Positive Sentiment: Debt and capital-allocation actions: Bausch Health Americas plans to redeem approximately $643 million of 8.5% senior notes due 2027 using cash on hand. Eliminating high-cost debt could reduce future interest expense and refinancing risk. The board also authorized up to $50 million in share repurchases, primarily to offset dilution from employee equity awards. Bausch Health notes redemption Bausch Health share repurchase program
• Neutral Sentiment: Cash generation improved: The company reported $581 million in cash provided by operating activities and $539 million in adjusted operating cash flow, supporting debt repayment and the buyback. However, using cash for the note redemption reduces near-term liquidity.
• Negative Sentiment: Balance-sheet risks remain: Despite the quarterly improvement, Bausch Health continues to report a negative net margin and sharply negative return on equity, reflecting its leveraged and complex financial structure. Investors may therefore focus on whether the stronger operating performance can persist.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on BHC shares. Wall Street Zen upgraded shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Zacks Research upgraded Bausch Health Cos from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Jefferies Financial Group upgraded Bausch Health Cos to a "hold" rating in a report on Wednesday, July 22nd. Weiss Ratings raised Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday, July 31st. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $9.00 target price on shares of Bausch Health Cos in a research report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Bausch Health Cos presently has a consensus rating of "Hold" and an average target price of $8.00.

Insiders Place Their Bets

In other Bausch Health Cos news, insider Aimee Lenar sold 36,827 shares of the firm's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $7.03, for a total value of $258,893.81. Following the sale, the insider owned 334,853 shares of the company's stock, valued at $2,354,016.59. This trade represents a 9.91% decrease in their position. The sale 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 insiders.

Hedge Funds Weigh In On Bausch Health Cos

Several hedge funds and other institutional investors have recently modified their holdings of the company. Paulson & CO. Inc. purchased a new stake in Bausch Health Cos in the second quarter worth about $361,151,000. MFN Partners Management LP purchased a new position in shares of Bausch Health Cos during the second quarter valued at approximately $29,580,000. Royal Bank of Canada lifted its holdings in shares of Bausch Health Cos by 24.9% during the first quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock valued at $61,362,000 after purchasing an additional 2,262,894 shares during the last quarter. Man Group plc bought a new stake in shares of Bausch Health Cos in the 2nd quarter worth approximately $7,157,000. Finally, Bank of America Corp DE bought a new stake in shares of Bausch Health Cos in the 2nd quarter worth approximately $2,816,000. 78.65% of the stock is owned by institutional investors.

Bausch Health Cos Trading Up 21.0%

The company has a market cap of $3.14 billion, a PE ratio of -2.83 and a beta of 0.37. The firm has a 50 day moving average of $6.17 and a two-hundred day moving average of $5.71.

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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