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

Bausch Health Cos (NYSE:BHC) released its quarterly earnings data on Wednesday. The company reported $1.26 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.30, Zacks reports. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 1,389.97%. The firm had revenue of $2.83 billion for the quarter, compared to analyst estimates 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 Price Performance

Shares of BHC traded up $0.55 during trading hours on Friday, hitting $6.58. The stock had a trading volume of 4,768,270 shares, compared to its average volume of 2,237,460. The company’s fifty day moving average is $4.96 and its two-hundred day moving average is $5.46. The company has a debt-to-equity ratio of 54.68, a current ratio of 1.32 and a quick ratio of 0.97. Bausch Health Cos has a 52 week low of $4.33 and a 52 week high of $8.69. The stock has a market capitalization of $2.46 billion, a price-to-earnings ratio of -2.22 and a beta of 0.42.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on BHC. Zacks Research cut Bausch Health Cos from a “hold” rating to a “strong sell” rating in a research note on Friday, July 24th. Jefferies Financial Group upgraded Bausch Health Cos to a “hold” rating in a report on Wednesday, July 22nd. Weiss Ratings lowered shares of Bausch Health Cos from a “sell (d)” rating to a “sell (d-)” rating in a research report on Monday, May 4th. Finally, 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 for the company in a report on Monday, April 27th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Bausch Health Cos has a consensus rating of “Reduce” and a consensus price target of $8.00.

Insider Buying and Selling

In other Bausch Health Cos news, Director Frank D. Lee sold 24,456 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were 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 of the company’s stock, valued at approximately $267,910.77. This represents a 33.14% decrease in their ownership of the stock. The sale was disclosed in a filing 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. 20.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. MUFG Securities EMEA plc acquired a new stake in Bausch Health Cos in the 2nd quarter valued at about $22,644,000. Paulson & CO. Inc. lifted its position in shares of Bausch Health Cos by 3.5% during the fourth 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 in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Bausch Health Cos by 65.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 5,143,641 shares of the company’s stock valued at $35,748,000 after purchasing an additional 2,038,813 shares during the last quarter. Millennium Management LLC increased its holdings in shares of Bausch Health Cos by 290.8% in the fourth quarter. Millennium Management LLC now owns 1,836,137 shares of the company’s stock valued at $12,758,000 after purchasing an additional 1,366,268 shares in the last quarter. Finally, Gendell Jeffrey L bought a new position in Bausch Health Cos in the 4th quarter worth approximately $9,023,000. 78.65% of the stock is owned by institutional investors.

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.