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

Bausch Health Cos (NYSE:BHC) issued its quarterly earnings data on Wednesday. The company reported $1.26 EPS 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 Stock Up 3.4%

NYSE:BHC traded up $0.15 during trading hours on Wednesday, reaching $4.67. 3,642,212 shares of the stock were exchanged, compared to its average volume of 2,114,559. The stock has a market cap of $1.75 billion, a PE ratio of -1.44 and a beta of 0.42. Bausch Health Cos has a twelve month low of $4.33 and a twelve month high of $8.69. The firm has a 50 day moving average of $4.97 and a 200 day moving average of $5.49. The company has a debt-to-equity ratio of 54.68, a current ratio of 1.32 and a quick ratio of 0.97.

Analyst Ratings Changes

BHC has been the subject of several research analyst reports. 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. Weiss Ratings cut shares of Bausch Health Cos from a “sell (d)” rating to a “sell (d-)” rating in a research report on Monday, May 4th. Jefferies Financial Group raised shares of Bausch Health Cos to a “hold” rating in a research note on Wednesday, July 22nd. Finally, Zacks Research cut Bausch Health Cos from a “hold” rating to a “strong sell” rating in a report on Friday, July 24th. Five research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Bausch Health Cos currently has a consensus rating of “Reduce” and an average target price 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 Activity

In other news, Director Frank D. Lee sold 24,456 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $5.43, for a total value of $132,796.08. Following the sale, the director owned 49,339 shares of the company’s stock, valued at $267,910.77. The trade was a 33.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is owned by company insiders.

Institutional Investors Weigh In On Bausch Health Cos

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tidal Investments LLC lifted its position in shares of Bausch Health Cos by 2.6% in the second quarter. Tidal Investments LLC now owns 50,131 shares of the company’s stock valued at $334,000 after buying an additional 1,276 shares during the last quarter. Commonwealth Equity Services LLC increased its holdings in shares of Bausch Health Cos by 14.8% during the 4th quarter. Commonwealth Equity Services LLC now owns 14,067 shares of the company’s stock worth $98,000 after acquiring an additional 1,812 shares during the last quarter. CANADA LIFE ASSURANCE Co raised its stake in Bausch Health Cos by 2.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 104,156 shares of the company’s stock valued at $690,000 after acquiring an additional 2,552 shares during the period. Russell Investments Group Ltd. raised its stake in Bausch Health Cos by 65.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,819 shares of the company’s stock valued at $51,000 after acquiring an additional 3,106 shares during the period. Finally, Squarepoint Ops LLC lifted its holdings in Bausch Health Cos by 4.6% during the 4th quarter. Squarepoint Ops LLC now owns 78,715 shares of the company’s stock valued at $547,000 after purchasing an additional 3,495 shares during the last quarter. 78.65% of the stock is currently owned by institutional investors and hedge funds.

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.