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

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

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 28.4%

NYSE:BHC traded up $1.97 during trading hours on Thursday, hitting $8.89. 21,382,502 shares of the company’s stock traded hands, compared to its average volume of 2,576,512. The firm has a market cap of $3.33 billion, a P/E ratio of -3.00 and a beta of 0.37. Bausch Health Cos has a 52 week low of $4.33 and a 52 week high of $9.04. The business’s fifty day simple moving average is $6.17 and its two-hundred day simple moving average is $5.71.

Insider Buying and Selling

In other Bausch Health Cos news, insider Aimee Lenar sold 36,827 shares of the company’s stock in a transaction dated 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 in the company, valued at $2,354,016.59. This represents a 9.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is currently owned by insiders.

Trending Headlines about Bausch Health Cos

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

• Positive Sentiment: Strong Q3 results and raised outlook: Bausch Health reported third-quarter revenue of approximately $2.94 billion, up 10% year over year, while adjusted EPS of $1.77 exceeded estimates. Adjusted EBITDA rose 32% to $1.305 billion, with growth led in part by Salix and its Xifaxan franchise. Management raised full-year 2026 revenue, adjusted EBITDA, and adjusted operating cash-flow guidance. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: Continued operating momentum: Excluding Bausch + Lomb, the company delivered its 14th consecutive quarter of year-over-year revenue and adjusted EBITDA growth. It generated $581 million in operating cash flow and $539 million in adjusted cash flow from operations, supporting confidence in its deleveraging capacity. BHC Q3 Earnings Beat on Salix Growth
• Positive Sentiment: Debt and shareholder-support measures: Bausch Health plans to redeem about $643 million of 8.5% senior notes due 2027 using cash on hand, which should reduce expensive debt and future interest expense. The company also authorized a $50 million share-repurchase program, primarily to offset employee-equity dilution. Bausch Health Announces Full Redemption of Senior Notes
• Neutral Sentiment: Analyst view improved modestly: Royal Bank of Canada raised its price target from $9 to $10 while maintaining a “sector perform” rating, implying additional upside but not a bullish recommendation. Royal Bank of Canada recommendations
• Neutral Sentiment: Call-option activity was more than twice its typical level, signaling increased speculative interest but not necessarily confirming institutional conviction.
• Negative Sentiment: Despite the quarter’s improvement, Bausch Health continues to carry significant financial leverage and reported negative trailing net margin and return on equity, leaving execution and balance-sheet risks for investors.

Analyst Ratings Changes

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

Bausch Health Cos Company Profile

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.