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

Bausch Health Cos (NYSE:BHC) posted its earnings results on Wednesday. The company reported $1.26 earnings per share for the quarter, topping the consensus estimate 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%.

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 $0.15 during trading hours on Wednesday, hitting $4.67. 3,642,212 shares of the company were exchanged, compared to its average volume of 2,114,559. The company has a market cap of $1.75 billion, a price-to-earnings ratio of -1.44 and a beta of 0.42. Bausch Health Cos has a fifty-two week low of $4.33 and a fifty-two week high of $8.69. 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 firm’s fifty day moving average is $4.97 and its 200 day moving average is $5.49.

Wall Street Analysts Forecast Growth

BHC has been the topic of a number of recent research reports. Zacks Research downgraded Bausch Health Cos from a “hold” rating to a “strong sell” rating in a research report on Friday, July 24th. Jefferies Financial Group upgraded Bausch Health Cos to a “hold” rating in a research note on Wednesday, July 22nd. Royal Bank Of Canada lowered their price target on 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, Weiss Ratings cut Bausch Health Cos from a “sell (d)” rating to a “sell (d-)” rating in a research note on Monday, May 4th. 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 MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $8.00.

Key Stories Impacting Bausch Health Cos

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

• Positive Sentiment: Bausch Health reported second-quarter revenue of $2.85 billion, up 13% year over year on a reported basis and 11% organically. Adjusted diluted EPS rose 40% to $1.26, while adjusted EBITDA increased 28% to $1.075 billion. The company also recorded $258 million in GAAP net income attributable to Bausch Health, compared with a loss-related comparison implied by the prior period. Bausch Health Announces Second Quarter 2026 Results, Raises Guidance
• Positive Sentiment: The company raised its full-year 2026 revenue, adjusted EBITDA and adjusted cash-flow-from-operations guidance. Bausch Health, excluding Bausch + Lomb, delivered its 13th consecutive quarter of year-over-year revenue growth, supported by a 16% reported revenue increase and 28% adjusted EBITDA growth.
• Positive Sentiment: Cash generation was solid, with $517 million in operating cash flow and $471 million in adjusted cash flow from operations. These results could help support debt management and improve investor confidence in the company’s highly leveraged balance sheet.
• Neutral Sentiment: Bausch Health was expected to report its second-quarter results on Wednesday, July 29, making the earnings release the primary near-term catalyst for BHC.
• Negative Sentiment: Zacks Research lowered its EPS forecasts across several future periods, including Q2 2027 to $0.81, FY2027 to $3.59, and FY2028 to $3.02. The firm also reduced estimates for Q3 and Q4 2027 and Q1 2028, and maintains a “Strong Sell” rating. The revisions suggest analysts remain cautious about the durability of future earnings growth despite the strong current quarter.

Insider Buying and Selling at Bausch Health Cos

In other news, Director Frank D. Lee sold 24,456 shares of Bausch Health Cos 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 owned 49,339 shares in the company, valued at approximately $267,910.77. This trade represents a 33.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 20.67% of the company’s stock.

Institutional Trading of Bausch Health Cos

Hedge funds and other institutional investors have recently made changes to their positions in the company. MUFG Securities EMEA plc bought a new position in shares of Bausch Health Cos during the second quarter valued at $22,644,000. Paulson & CO. Inc. grew its stake in shares of Bausch Health Cos by 3.5% in 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 during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of 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 purchasing an additional 2,038,813 shares during the last quarter. Millennium Management LLC increased its holdings in 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 during the period. Finally, Gendell Jeffrey L acquired a new stake in Bausch Health Cos in the fourth quarter valued at $9,023,000. 78.65% of the stock is currently owned by institutional investors.

About Bausch Health Cos

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.