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

Bausch Health Cos (NYSE:BHC) released its quarterly earnings results on Wednesday. The company reported $1.26 earnings per share (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%.The business had revenue of $2.83 billion during the quarter, compared to the consensus estimate of $2.59 billion.

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 Stock Performance

BHC traded up $1.30 during mid-day trading on Thursday, reaching $5.98. 5,915,140 shares of the company traded hands, compared to its average volume of 2,132,784. The stock has a market capitalization of $2.24 billion, a P/E ratio of -1.86 and a beta of 0.42. The company has a quick ratio of 0.97, a current ratio of 1.32 and a debt-to-equity ratio of 54.68. The company’s fifty day moving average price is $4.95 and its 200-day moving average price is $5.47. Bausch Health Cos has a 52-week low of $4.33 and a 52-week high of $8.69.

Insider Activity

In other news, Director Frank D. Lee sold 24,456 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $5.43, for a total value of $132,796.08. Following the transaction, the director directly owned 49,339 shares in the company, valued at $267,910.77. This trade represents a 33.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of BHC. Paulson & CO. Inc. lifted its stake in shares of Bausch Health Cos by 3.5% in the 4th quarter. Paulson & CO. Inc. now owns 73,255,869 shares of the company’s stock worth $509,128,000 after purchasing an additional 2,500,000 shares during the period. Goldman Sachs Group Inc. raised its position in Bausch Health Cos by 65.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,143,641 shares of the company’s stock worth $35,748,000 after acquiring an additional 2,038,813 shares during the period. MUFG Securities EMEA plc purchased a new position in shares of Bausch Health Cos during the 2nd quarter worth $22,644,000. Dimensional Fund Advisors LP boosted its stake in shares of Bausch Health Cos by 8.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,253,995 shares of the company’s stock worth $22,616,000 after acquiring an additional 241,546 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of Bausch Health Cos by 8.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,045,737 shares of the company’s stock worth $14,223,000 after purchasing an additional 151,658 shares in the last quarter. 78.65% of the stock is owned by hedge funds and other institutional investors.

More Bausch Health Cos News

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

• Positive Sentiment: Quarterly earnings and revenue beat expectations. Bausch Health reported adjusted EPS of $1.26, up from $0.90 a year earlier and above the $0.96 consensus estimate. Revenue reached approximately $2.85 billion, up 13% year over year and ahead of the roughly $2.59 billion analyst forecast. Bausch Health Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability and operating cash flow improved materially. Consolidated adjusted EBITDA increased 28% to $1.075 billion, while the company generated $517 million in operating cash flow and $471 million in adjusted cash flow from operations. GAAP net income attributable to Bausch Health was $258 million, compared with substantially lower earnings in the prior-year period. Bausch Health Announces Second Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 targets. Revenue guidance was increased to $10.8 billion-$11.0 billion, above the approximately $10.7 billion consensus estimate. The company also raised its full-year adjusted EBITDA and adjusted operating cash-flow guidance, reinforcing confidence in continued execution. Bausch Health Raises Guidance
• Positive Sentiment: Underlying growth remained consistent. Bausch Health excluding Bausch + Lomb delivered its thirteenth consecutive quarter of year-over-year revenue growth, with reported revenue up 16% and adjusted EBITDA up 28%. Bausch Health Q2 2026 Earnings Call Transcript
• Negative Sentiment: Analyst caution remains. Zacks Research expects weaker earnings for BHC, suggesting that despite the quarterly beat and higher revenue outlook, some market participants may anticipate softer future earnings or pressure on the stock’s recent rally. Zacks Research Expects Weaker Earnings

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Jefferies Financial Group upgraded Bausch Health Cos to a “hold” rating in a research report on Wednesday, July 22nd. Weiss Ratings lowered Bausch Health Cos from a “sell (d)” rating to a “sell (d-)” rating in a research note on Monday, May 4th. Royal Bank Of Canada reduced their price target on shares of Bausch Health Cos from $10.00 to $9.00 and set a “sector perform” rating on the stock in a research report on Monday, April 27th. Finally, Zacks Research downgraded shares of Bausch Health Cos from a “hold” rating to a “strong sell” rating in a research note on Friday, July 24th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target 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.