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

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

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 Price Performance

Bausch Health Cos stock traded up $1.97 during trading hours on Thursday, hitting $8.89. The company had a trading volume of 22,909,534 shares, compared to its average volume of 2,582,977. The firm has a market capitalization of $3.33 billion, a P/E ratio of -3.00 and a beta of 0.37. The firm’s fifty day moving average is $6.17 and its 200-day moving average is $5.71. Bausch Health Cos has a fifty-two week low of $4.33 and a fifty-two week high of $9.04.

Analysts Set New Price Targets

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

Insider Activity

In other Bausch Health Cos news, insider Aimee Lenar sold 36,827 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the insider owned 334,853 shares in the company, valued at approximately $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 can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 20.67% of the company’s stock.

Key Headlines Impacting 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.

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.