BHC

Bausch Health (BHC) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this drugmaker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Bausch Health, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $1.08 per share for the current quarter represents a change of -6.9% from the number reported a year ago. Over the last 30 days, the Zacks Consensus Estimate for Bausch has increased 5.37% because one estimate has moved higher compared to no negative revisions. For the full year, the earnings estimate of $4.35 per share represents a change of +16.6% from the year-ago number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Bausch versus no negative revisions. This has pushed the consensus estimate 7.41% higher. Thanks to promising estimate revisions, Bausch currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Bausch shares have added 53% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bausch Health (BHC) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.9 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +31.25%. A quarter ago, it was expected that this drugmaker would post earnings of $0.81 per share when it actually produced earnings of $0.78, delivering a surprise of -3.7%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Bausch, which belongs to the Zacks Medical - Generic Drugs industry, posted revenues of $2.85 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.62%. This compares to year-ago revenues of $2.53 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bausch shares have lost about 35% since the beginning of the year versus the S&P 500's gain of 8.5%. While Bausch has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bausch was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.03 on $2.72 billion in revenues for the coming quarter and $4.05 on $10.73 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Generic Drugs is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sol-Gel Technologies Ltd. (SLGL), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $2.31 per share in its upcoming report, which represents a year-over-year change of -155.4%. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. Sol-Gel Technologies Ltd.'s revenues are expected to be $0.15 million, down 99.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report Sol-Gel Technologies Ltd. (SLGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Bausch Health Cos Inc.? Here are five stocks we like better. Bausch Health raised its full-year outlook after reporting strong second-quarter growth: excluding Bausch + Lomb, revenue rose 16% to $1.458 billion and adjusted EBITDA increased 28% to $865 million. Salix led segment performance, with revenue up 21% and XIFAXAN revenue up 26%, while Solta Medical revenue grew 38% and benefited from strong momentum in China and other Asia-Pacific markets. The company reduced net debt by $434 million to $13.7 billion, but warned of second-half headwinds from gross-to-net adjustments, Aplenzin’s loss of exclusivity and Medicaid erosion. Management also continues evaluating options to unlock value from Bausch + Lomb. Bausch Health: A Buyout Bid Could Be the Ticket to Unlock Value Bausch Health Cos (NYSE:BHC) reported second-quarter results that management said extended its streak of revenue and adjusted EBITDA growth to 13 consecutive quarters, driven by performance in its Salix, international and Solta Medical businesses. For Bausch Health excluding Bausch + Lomb, second-quarter revenue rose 16% year over year to $1.458 billion. Adjusted EBITDA increased 28% to $865 million, while adjusted cash flow from operations climbed $116 million from a year earlier to $471 million. The company raised its full-year outlook for revenue, adjusted EBITDA and adjusted cash flow from operations. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 3 cheap 'stock'-ing stuffers Wall Street is bullish on On a consolidated basis, including Bausch + Lomb, revenue totaled $2.852 billion, up 13% on a reported basis and 11% organically. Consolidated adjusted EBITDA increased 28% to $1.075 billion, and adjusted cash flow from operations rose 44% to $637 million. Salix revenue increased 21% to $758 million during the quarter, led by a 26% increase in XIFAXAN revenue. Chief Financial Officer JJ Charhon said XIFAXAN benefited from favorable net pricing as the company continued to optimize its volume-price tradeoff after exiting Medicaid and the 340B program. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Zoetis Declares New Dividend, Hinting At Undervaluation Total retail prescriptions for XIFAXAN, excluding Medicaid, rose 4% year over year, while extended units excluding Medicaid declined 2%. Charhon attributed the unit decline to reduced volume associated with 340B institutions. CEO Tom Appio said the company intends to continue optimizing XIFAXAN’s revenue and margin profile during its exclusivity period. Bausch Health’s 2027 adjusted EBITDA outlook remains $2.7 billion and assumes XIFAXAN maintains market exclusivity through Jan. 1, 2028. → Innovative ETF Strategies That Are Paying Off This Summer Management cautioned that growth is expected to slow in the second half of 2026. The company expects a roughly $150 million headwind from changes in gross-to-net accruals related to channel inventory, including an expected $90 million fourth-quarter expense tied to higher rebates owed to the Centers for Medicare & Medicaid Services beginning in 2027. The company also expects about $50 million of second-half pressure following Aplenzin’s loss of exclusivity at the end of June and an additional approximately $75 million headwind from gradual erosion in Medicaid and former 340B patient revenue. International segment revenue increased 10% on a reported basis and 5% organically to $305 million. Organic revenue grew 16% in Latin America and 9% in Europe, the Middle East and Africa, while Canada declined 9% due to the absence of a prior-year one-time net pricing benefit. Appio highlighted continued expansion of the company’s cardiometabolic franchise in Latin America. In Canada, Charhon said the promoted-brand portfolio grew 14% excluding the prior-year pricing benefit, led by a 64% increase in RYALTRIS revenue. Solta Medical revenue rose 38% on a reported basis and 12% organically to $176 million. Segment profit increased 69% to $91 million. Revenue in China grew 136%, supported by the integration of Shibo, the company’s full-service distributor in China, as well as momentum in other Asia-Pacific markets. South Korea, Solta’s second-largest revenue contributor, grew 8%, while Taiwan revenue rose 42%. Charhon said the company estimates Solta’s full-year segment-profit run rate at about $330 million, approximately $100 million above 2025, after accounting for revenue seasonality and expense timing. Management said it plans to continue investing in Solta’s field-force capabilities and direct-to-consumer efforts in the U.S., while expanding commercial resources in China. Bausch Health reduced net debt by $434 million during the quarter to $13.7 billion. Charhon said strong operating performance, favorable working-capital changes and lower outflows for legacy litigation and restructuring supported the reduction. The company said it completed the final payment related to settled U.S. opt-out litigation in the first quarter. For the first half, excluding Bausch + Lomb, revenue grew 15% and adjusted EBITDA rose 23% from the prior-year period. Based on that performance, Bausch Health increased the midpoint of its full-year guidance by $100 million for revenue, $150 million for adjusted EBITDA and $200 million for adjusted cash flow from operations. Revenue is now projected at $5.35 billion to $5.50 billion. Adjusted EBITDA is expected to be $3.025 billion to $3.10 billion. Adjusted cash flow from operations is forecast at $1.40 billion to $1.475 billion. The midpoint of the updated ranges implies 5% revenue growth, 10% adjusted EBITDA growth and 21% adjusted cash flow from operations growth versus 2025, according to the company. Appio said business development remains a strategic priority, particularly within the company’s U.S. pharmaceutical platform. He cited gastrointestinal and liver disease, neuroscience, dermatology, pain and adjacent categories as areas of interest, while also saying the company is open to therapeutic areas where its commercial infrastructure can add value. Charhon said capital allocation priorities remain reducing leverage and reinvesting in the business. Smaller development-stage investments could resemble the company’s DURECT transaction, while larger acquisitions would need to offer a relatively quick payback, be close to commercialization or present clear synergy opportunities, he said. Regarding Bausch + Lomb, management said it continues to assess options to realize the asset’s value for Bausch Health shareholders. Bausch + Lomb reported second-quarter revenue of $1.394 billion, up 9% on a reported basis and 8% organically. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bausch Health Cos Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Bausch Health Companies Inc. BHC reported second-quarter 2026 adjusted earnings of $1.26 per share, up 40% year over year. The figure beat the Zacks Consensus Estimate of 96 cents. Revenues increased 13% year over year to $2.85 billion and surpassed the Zacks Consensus Estimate of $2.65 billion. Growth was led by Salix, Solta Medical and Bausch + Lomb, while Xifaxan revenues climbed 26%. Excluding foreign exchange effects of $25 million, acquisitions of $35 million and divestitures and discontinuations of $7 million, total revenues increased 11% organically. BHC’s shares have lost 32.7% year to date compared with the industry’s decline of 1.3%. Image Source: Zacks Investment Research The company reports revenues under two segments: Bausch Health and Bausch + Lomb. Bausch Health’s revenues amounted to $1.46 billion, up 16% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products. Salix revenues totaled $758 million, increasing 21% year over year on both reported and organic basis. Xifaxan remained the primary growth engine, with revenues rising 26% to $664 million on higher realized net pricing, volume growth in existing channels and residual Medicaid volume. Relistor revenues declined 13% to $41 million due to lower volume. Trulance revenues increased 14% to $41 million, benefiting from improved pricing despite lower volume. Salix’s revenues beat the Zacks Consensus Estimate of $646 million and our model estimate of $644 million. International revenues increased 10% to $305 million, while organic growth was 5%. The reported figure beat the Zacks Consensus Estimate of $292 million and our model estimate of $291.5 million. EMEA revenues rose 12% to $155 million and delivered a 14th consecutive quarter of organic growth. Latin America revenues jumped 30% to $83 million, supported by established and newly launched products. Solta Medical revenues surged 38% to $176 million, aided by the acquisition of the company’s full-service distributor in China. The figure beat the Zacks Consensus Estimate of $170 million but missed our model estimate of $185 million. Organic growth was 12%, led by Asia-Pacific strength. Thermage revenues increased 42%, while Clear + Brilliant revenues rose 17%. BHC had earlier acquired Shibo’s full-service aesthetics distribution business in China. The acquisition expands its geographic footprint, provides direct access to a large and growing customer base, and enhances its ability to meet rising demand for aesthetic treatments, boosting the long-term growth potential of its global aesthetics franchise. Diversified segment revenues amounted to $219 million, flat year over year. This segment revenues beat the Zacks Consensus Estimate of $200 million and our model estimate of $185 million. Within this segment, neuroscience sales increased 17% year over year, driven by favorable net pricing, partially offset by volume decline. The Dermatology business was down 15% to $47 million due to lower volumes across mature and promoted products. Sales from the Dentistry business amounted to $20 million, down 20%. The Generics business generated sales of $14 million, down 33%. Bausch + Lomb revenues advanced 9% to $1.39 billion. Excluding foreign exchange, acquisitions and divestitures and discontinuations, the segment posted organic growth of 8%, reflecting gains across its Vision Care, Surgical and Pharmaceuticals businesses. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.34 billion. Adjusted gross profit increased 16% to $2.08 billion. The adjusted gross margin expanded 230 basis points to 72.9%, while total adjusted operating expenses increased 6% to $1.08 billion. Adjusted cash flows from operations rose 44% to $637 million. BHC raised its 2026 consolidated revenue outlook to $10.79-$11.04 billion from $10.67-$10.92 billion. Adjusted EBITDA is now projected to be between $4.05 billion and $4.18 billion, up from the previous guidance of $3.89-$4.01 billion. Excluding Bausch + Lomb, revenues are expected to be between $5.35 billion and $5.50 billion, implying growth of 4-6%, and up from the earlier projected range of $5.25-$5.40 billion. The registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026. The FDA had earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH. An internal review on amiselimod, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing. The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. BHC put up a strong performance in the second quarter driven by Salix and Solta businesses. Xifaxan continues to drive growth. Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote Consequently, the company raised its annual guidance. BHC’s efforts to reduce its massive debt is also encouraging. On a consolidated basis, cash and cash equivalents totaled $1.83 billion, up from $1.31 billion at the end of 2025. Consolidated debt at principal value was $20.24 billion, while net consolidated debt totaled $18.41 billion. Bausch currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the sector are Harmony Biosciences HRMY, Liquidia Corporation LQDA and Amarin AMRN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 earnings have increased from $3.64 to $3.87 during the same time. Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%. Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 EPS have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 151.7% year to date. Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%. Over the past 90 days, Amarin's loss per share estimates for 2026 have narrowed from $6.36 to 65 cents, and the same for 2027 loss has narrowed from $4.64 to 51 cents. Amarin's earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 50.02%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report Amarin Corporation PLC (AMRN) : Free Stock Analysis Report Liquidia Corporation (LQDA) : Free Stock Analysis Report Harmony Biosciences Holdings, Inc. (HRMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a historical high adjusted EBITDA margin of 59%, driven by a 530 basis point year-over-year expansion through disciplined G&A tightening and productivity initiatives. Salix segment growth of 21% was primarily fueled by optimized net realized pricing and resilient Xifaxan demand despite strategic exits from Medicaid and 340B channels. Solta Medical's 38% revenue growth illustrates the successful vertical integration of the Shibo full-service distributor in China, which significantly accreted to segment margins. International performance was bolstered by 14 consecutive quarters of organic growth in EMEA and the expansion of the cardiometabolic franchise in Latin America. Management attributes the 13th consecutive quarter of growth to a 'customer insights engine' and AI-powered prescribing analytics that maximize sales force effectiveness. The company successfully reduced net debt to $13.7 billion, prioritizing organic cash flow generation over large-scale acquisitions to fix the capital structure. Full-year 2026 guidance was raised across all metrics, with the midpoint for adjusted cash flow from operations increased by $200 million due to strong business momentum. Second-half 2026 growth is expected to decelerate due to a $150 million headwind from gross-to-net accrual changes and a $90 million expense related to 2027 CMS rebate increases. The 2027 adjusted EBITDA guidance remains at $2.7 billion, assuming maintained market exclusivity for Xifaxan until January 1, 2028. Management anticipates a $50 million revenue headwind in the second half of 2026 following the loss of exclusivity for Aplenzin in June. Future business development strategy focuses on 'tuck-in' acquisitions in U.S. Pharma and North American deals to offset legacy product erosion in Canada. The integration of the Shibo distributor in China is expected to contribute a $100 million year-over-year increase in Solta's segment profit run rate. Legacy litigation risks have been mitigated following the final payment for U.S. opt-out settlements in the first quarter of 2026. Management noted that while Medicaid and 340B volumes have been more resilient than expected, a gradual erosion of $75 million is projected for the second half of the year. The company is evaluating all avenues to realize the value of its Bausch + Lomb stake, noting that current BHC share prices may not reflect the asset's underlying value. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is prioritizing U.S. Pharma platforms, specifically in GI, liver, neuroscience, and derm, utilizing their AI engine as a competitive advantage for partners. Capital allocation remains focused on debt reduction first, followed by small development-stage investments or larger assets with quick payback periods. The 2025 refinancing was designed to extend the runway and increase flexibility regarding the timing of a full separation. Management is monitoring B+L's 'Vision 2027' targets to determine the optimal timing for translating that value into the BHC share price. The 2027 EBITDA guidance of $2.7 billion already factors in the impact of incremental CMS rebates starting January 1, 2027. Management stated that payers have not yet explicitly referenced Part D IRA pricing in 2027 commercial contracting negotiations. The $330 million profit run rate for Solta accounts for normalized G&A spending and the end of one-time inventory step-up costs from the China integration. Future growth will be driven by double-digit top-line expectations and increased investment in U.S. direct-to-consumer advertising.

Bausch Health (BHC) reported $2.85 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.7%. EPS of $1.26 for the same period compares to $0.90 a year ago. The reported revenue represents a surprise of +7.62% over the Zacks Consensus Estimate of $2.65 billion. With the consensus EPS estimate being $0.96, the EPS surprise was +31.25%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Bausch performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Total Bausch + Lomb revenues: $1.39 billion versus $1.34 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change. Revenues- Diversified Products: $219 million versus the two-analyst average estimate of $199.83 million. The reported number represents a year-over-year change of 0%. Revenues- Bausch + Lomb- Vision Care: $784 million versus the two-analyst average estimate of $782.41 million. The reported number represents a year-over-year change of +4.1%. Revenues- Bausch + Lomb- Surgical: $256 million compared to the $232.49 million average estimate based on two analysts. The reported number represents a change of +18.5% year over year. Revenues- Bausch + Lomb- Pharmaceuticals: $354 million versus $326.85 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.6% change. Revenues- International: $305 million compared to the $292.25 million average estimate based on two analysts. The reported number represents a change of +9.7% year over year. Revenues- Total Bausch Health (excl. B+L): $1.46 billion compared to the $1.31 billion average estimate based on two analysts. The reported number represents a change of +16.5% year over year. Revenues- Solta Medical: $176 million versus the two-analyst average estimate of $170.13 million. The reported number represents a year-over-year change of +37.5%. Revenues- Diversified Products- Neuroscience: $138 million versus the two-analyst average estimate of $120.21 million. The reported number represents a year-over-year change of +17%. Revenues- Diversified Products- Generics: $14 million versus the two-analyst average estimate of $18.7 million. The reported number represents a year-over-year change of -33.3%. Revenues- Diversified Products- Dentistry: $20 million versus the two-analyst average estimate of $21.43 million. The reported number represents a year-over-year change of -20%. Revenues- Salix: $758 million versus the two-analyst average estimate of $646.3 million. The reported number represents a year-over-year change of +20.9%. View all Key Company Metrics for Bausch here>>> Shares of Bausch have returned -8.3% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Consolidated Revenues of $2.85 billion, up 13% on a Reported basis and 11% on an Organic (non-GAAP)1 basis over the prior year period GAAP Net Income Attributable to Bausch Health of $258 million and GAAP Net Income of $260 million GAAP Earnings per Diluted Share Attributable to Bausch Health of $0.68 compared to $0.40 in the prior year period; Adjusted Earnings per Diluted Share (non-GAAP)1 of $1.26 compared to $0.90 in the prior year period, an increase of 40% Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1 of $1,075 million, up 28% on a Reported basis over the prior year period BAUSCH HEALTH EXCLUDING BAUSCH + LOMB SECOND QUARTER 2026 RESULTS Delivered thirteenth consecutive quarter of year-over-year Revenue growth, with Revenue up 16% on a Reported basis and 13% on an Organic (non-GAAP)1 basis Net Income increased $84 million over the prior year period, and Adjusted EBITDA (non-GAAP)1 grew 28% Generated $517 million in Cash Provided by Operating Activities and $471 million in Adjusted Cash Flows from Operations (non-GAAP)1 Raising full-year 2026 Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flows from Operations (non-GAAP)1 guidance LAVAL, QC, July 29, 2026 /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) ("Bausch Health" or the "Company" or "we" or "our") today announced its second quarter 2026 financial results and other key updates from the quarter. "The second quarter marks our thirteenth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, reflecting the strength of our portfolio, disciplined execution, and the dedication of our teams around the world. We delivered our highest Revenue and Adjusted EBITDA growth rates in the past three years, generated our strongest Adjusted Cash Flow from Operations since Q4 2024, and reduced Net Debt by one of our largest amounts since our 2022 debt refinancing. This performance strengthens our financial flexibility and supports continued investment in our business, our pipeline, and business development opportunities. We remain focused on driving long-term value creation," said Thomas J. Appio, Chief Executive Officer, Bausch Health. Second Quarter 2026 Revenue Performance Total consolidated reported revenues were $2.85 billion for the second quarter of 2026, compared with $2.53 billion in the second quarter of 2025, an increase of $322 million, or 13%. Excluding the impact of foreign exchange of $25 million, acquisitions of $35 million, and divestitures and discontinuations of $7 million, revenue increased 11% on an organic1 basis compared with the second quarter of 2025. Reported revenues by segment were as follows: Salix SegmentSalix segment reported revenues were $758 million for the second quarter of 2026, compared with $627 million for the second quarter of 2025, an increase of $131 million, or 21%. Segment revenues increased 21% on an organic1 basis compared with the second quarter of 2025. Xifaxan® was the primary contributor to growth, with 26% revenue growth in the second quarter of 2026. International SegmentInternational segment reported revenues were $305 million for the second quarter of 2026, compared with $278 million for the second quarter of 2025, an increase of $27 million, or 10%. Excluding the impact of foreign exchange of $12 million, segment revenues grew 5% on an organic1 basis compared with the second quarter of 2025, with strong execution across LATAM and EMEA more than offsetting softer results in Canada. Solta Medical SegmentSolta Medical segment reported revenues were $176 million for the second quarter of 2026, compared with $128 million in the second quarter of 2025, an increase of $48 million, or 38% aided by the acquisition of our full service distributor in China. Excluding a $1 million favorable impact from foreign exchange and acquisitions of $32 million, segment revenues increased by 12% on an organic1 basis compared with the second quarter of 2025, led by growth in APAC including South Korea, China and Taiwan. Diversified SegmentDiversified segment reported revenues were $219 million for the second quarter of 2026, flat compared with $219 million for the second quarter of 2025. Segment revenues were flat on an organic1 basis compared with the second quarter of 2025. Results in the Neuroscience business balanced softer performance in Dermatology, Generics, and Dentistry. Bausch + Lomb SegmentBausch + Lomb segment reported revenues were $1.39 billion for the second quarter of 2026, compared with $1.28 billion for the second quarter of 2025, an increase of $116 million, or 9%. Excluding the impact of foreign exchange of $12 million, acquisitions of $3 million and divestitures and discontinuations of $5 million, segment revenues increased 8% on an organic1 basis compared with the second quarter of 2025. Consolidated Operating IncomeConsolidated operating income was $740 million for the second quarter of 2026, compared with consolidated operating income of $444 million for the second quarter of 2025, an increase of $296 million, primarily attributable to results in the Salix, Bausch + Lomb, and Solta Medical segments. Consolidated Net Income Attributable to Bausch HealthConsolidated net income attributable to Bausch Health for the second quarter of 2026 was $258 million, compared with consolidated net income attributable to Bausch Health of $148 million for the second quarter of 2025. Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)1Consolidated adjusted net income attributable to Bausch Health (non-GAAP)1 for the second quarter of 2026 was $476 million, compared with $335 million for the second quarter of 2025, an increase of $141 million, primarily due to higher revenues. Consolidated Earnings Per Share Attributable to Bausch HealthConsolidated earnings per share attributable to Bausch Health for the second quarter of 2026 was $0.68 on a diluted basis, compared with consolidated earnings per share of $0.40 on a diluted basis for the second quarter of 2025. Consolidated Adjusted Earnings Per Share Attributable to Bausch Health (non-GAAP)1Consolidated adjusted earnings per share attributable to Bausch Health (non-GAAP)1 for the second quarter of 2026 was $1.26, compared with $0.90 for the second quarter of 2025. Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)1 was $1,075 million for the second quarter of 2026, compared with $842 million for the second quarter of 2025, an increase of $233 million. Consolidated Cash Provided by Operating ActivitiesThe Company generated $671 million of cash from operating activities in the second quarter of 2026, an increase of 132% versus $289 million in the second quarter of 2025. Balance Sheet HighlightsAs of June 30, 2026, Bausch Health reported consolidated cash and cash equivalents of $1,825 million, up from $1,309 million as of December 31, 2025. The Company remains focused on strengthening its balance sheet and delivering value to all stakeholders. Focus on Strategic Priorities The Company entered the second half of 2026 with strong financial momentum, with revenue and earnings growth across multiple segments. Upon the successful completion of major refinancing initiatives in the prior twelve-month period, the Company materially improved its debt maturity profile. The Company remains committed to evaluating all options for unlocking shareholder value, including maximizing the value of our Bausch Health and Bausch + Lomb assets. 2026 Financial Outlook The Company updated its Consolidated full-year Revenue and Adjusted EBITDA (non-GAAP)1 guidance for 2026. Bausch Health (excluding Bausch + Lomb) is raising its full year Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flows from Operations (non-GAAP)1 guidance, which includes the currently estimated impact of applicable tariffs for the calendar year as of the date of this release. Other than with respect to GAAP revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) or forward-looking Adjusted Cash Flows from Operations (non-GAAP)1 to GAAP cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) and payments (such as payments of legal settlements, transformation costs, separation costs and separation-related costs, interest charged against premium, financing fees paid in connection with the debt refinancing transactions and acquired IPR&D expense) used to calculate Adjusted Cash Flows from Operations (non-GAAP)1 vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of projected net income (loss) or cash provided by operating activities at this time. The amount of these adjustments may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)1. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, including retaliatory tariffs and other trade protectionist measures as the situation develops, and there can be no assurance that such impacts will not be adverse. Conference Call Details Date: Wednesday, July 29, 2026 Time: 5:00 p.m. EDT Webcast: http://ir.bauschhealth.com/events-and-presentations A replay of the conference call will be available on the investor relations website. About Bausch Health Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn. Forward-looking Statements This news release contains forward-looking information and statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to the Company's: future prospects and performance, financial guidance, research and development efforts and anticipated timing or results thereof, proposed plan to separate its eye health business, including the timing thereof, management of its balance sheet, generation of cash, ability to launch and commercialize new products, including the timing of regulatory processes with respect to the Company's product pipeline, ability to enforce and defend its Xifaxan® intellectual property rights, ability to execute its growth strategies and strategic priorities generally, and other corporate and strategic transactions. Forward-looking statements may generally be identified by the use of the words "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "estimates," "potential," "target," or "continue" and positive and negative variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements, including the full-year guidance, are based upon the current expectations and beliefs of management. The Company's 2026 financial outlook and full-year guidance are included to provide further information about management's expectations about the Company's future business operations, activities and results and may not be appropriate for other purposes. These forward-looking statements are subject to certain factors, risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: our ability to execute our business strategy, business plans and operational efficiency initiatives; demand for, competitive positioning of and pricing for our current and anticipated products and our ability to achieve expected revenues, margins and expense levels; the successful development, regulatory approval, manufacture and timing of launches and commercialization of pipeline and other products; the completion, timing, integration and expected benefits of acquisitions and other strategic transactions (including the planned separation of our eye health business consisting of our Bausch + Lomb global Vision Care, Surgical and Pharmaceuticals businesses) on anticipated terms, timing and costs; the scope, duration and financial and operational impact of product quality matters and manufacturing facility compliance and certification matters; the continued availability and performance of key third-party distribution, fulfillment and other arrangements and the stability of global supply chains; the continuation of patent protection and regulatory exclusivity for key products; the expected impacts of the Inflation Reduction Act, and the impact of the negotiated prices for Xifaxan®, expected to become effective in 2027, under certain programs of the Centers for Medicare & Medicaid Services, and other healthcare reform measures and our ability to mitigate the impact thereof; our ability to generate cash flows and access liquidity to meet working capital needs, satisfy debt maturities as they become due, reduce debt levels and comply with financial and other covenants under our financing arrangements; the expected scope and impact of tariffs, counter-tariffs and other trade restrictions and the effectiveness of mitigation actions and the Company's ability to recover any tariffs that are eligible for refund claims; macroeconomic and geopolitical conditions (including inflation, recessionary pressures, foreign currency exchange rates and interest rates), changes in tax laws and related guidance (including legislation referred to as the One Big Beautiful Bill Act and Organisation for Economic Co-operation and Development related measures); the expected outcomes of litigation and other contingencies; and other factors, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors, risks and uncertainties are incorporated herein by reference. We caution that, as it is not possible to predict or identify all relevant factors that may impact forward-looking statements, the factors referred to above are not exhaustive and should not be considered a complete statement of all potential risks and uncertainties. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the aforementioned factors and other uncertainties and potential events. These forward-looking statements speak only as of the date made. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, except as required by law. Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the Company's performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures and ratios address questions the Company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. The reconciliations of these historical non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP Net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Many of the adjustments and exclusions used to calculate the projected non-GAAP measures may vary significantly based on actual events, so the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of these projected amounts. The amounts of these adjustments may be material and, therefore, could result in the GAAP amount being materially different from (including materially less than) the projected non-GAAP measures. Commencing in the third quarter of 2025, the Company now includes payments of Acquired IPR&D in the calculation of Adjusted Cash Flows From Operations (non-GAAP). Prior-period amounts presented herein have been restated to conform to the current year's presentation. Description of Non-GAAP Financial Measures EBITDA (non-GAAP), Adjusted EBITDA (non-GAAP) and Adjusted EBITDA Attributable to Bausch Health (non-GAAP) EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization, and certain other items described below. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) as defined below. Management believes that Adjusted EBITDA (non-GAAP) and Adjusted EBITDA attributable to Bausch Health (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflect our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization and the following items: Restructuring, integration and transformation costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. Additionally, the Company is launching certain transformation initiatives that will result in certain changes to and investment in its organizational structure and operations. These transformation initiatives arise outside of the ordinary course of continuing operations and, as is the case with the Company's restructuring efforts, costs associated with these transformation initiatives are expected to fluctuate between periods in amount, size and timing. These out-of-the-ordinary-course charges include third-party advisory costs, as well as certain severance-related costs. Investors should understand that the outcome of these transformation initiatives may result in future restructuring actions and certain of these charges could recur. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Asset impairments: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes impairments of intangible assets and assets held for sale from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation. Goodwill impairments: The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit's carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business. Share-based compensation: The Company has excluded costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted. Acquisition-related costs and adjustments (excluding amortization of intangible assets): The Company has excluded the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are significantly impacted by the timing and size of its acquisitions. In addition, the Company excludes acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments are not consistent and are significantly impacted by the timing and size of the Company's acquisitions, as well as the nature of the agreed-upon consideration. Loss (gain) on extinguishment of debt: The Company has excluded loss (gain) on extinguishment of debt as this represents a gain or loss from refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating the separation of the eye-health business, and include, but are not limited to, legal, audit and advisory fees. Separation-related costs are incremental costs indirectly related to the separation of the eye-health business and include, but are not limited to, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Other adjustments: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with legal and governmental proceedings, investigations and information requests regarding certain of our legacy distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net (gain) loss on sale of assets or other disposition of assets. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company has also excluded IT infrastructure investments that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. The Company has also excluded certain other costs, including professional fees associated with contemplated, but not completed, strategic transactions. The Company excluded these costs as the consideration of such matters are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP). Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest. Adjusted Net Income (non-GAAP) and Adjusted Net Income attributable to Bausch Health (non-GAAP) Adjusted net income (non-GAAP) is Net income (its most directly comparable GAAP financial measure), adjusted for asset impairments, goodwill impairments, restructuring, integration and transformation costs, acquisition-related costs and adjustments (excluding amortization of intangible assets), gain (loss) on extinguishment of debt, separation costs and separation-related costs and other non-GAAP adjustments as these adjustments are described above, and amortization of intangible assets and write down of financing fees as described below: Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes the amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Write down of financing fees: In addition to excluding Loss (gain) on extinguishment of debt, the Company has excluded the impact of the write down of financing fees from Adjusted net income (non-GAAP). The amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. In addition, the Company excluded these costs as they are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest. Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it is management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the Company's performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the Company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company's operating performance. It is also noted that, in recent periods, our GAAP Net income (loss) was significantly lower than our Adjusted net income (non-GAAP). Adjusted Earnings Per Share (non-GAAP) Adjusted earnings per share (non-GAAP) is calculated as Basic and Diluted loss per share attributable to Bausch Health (its most directly comparable GAAP financial measure), adjusted for the non-GAAP adjustments to reconcile Net income (loss) attributable to Bausch Health to Adjusted income attributable to Bausch Health (non-GAAP) and the diluted effect of stock options and restricted stock units excluded in the determination of Basic and Diluted loss per share attributable to Bausch Health during the period as the effect of including them would have been antidilutive. Management believes this non-GAAP measure excludes certain factors that could distort the visibility of the Company's underlying performance per share and offers investors a clearer, supplemental view of the Company's performance and trends over the reported periods. As a result, the Company considers Adjusted earnings per share (non-GAAP) to be beneficial for investors evaluating the Company's operating results, overall valuation, and potential return on investment. Management notes that for the periods presented, the Company's GAAP EPS was notably lower than its Adjusted earnings per share (non-GAAP). Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP) Organic revenue (non-GAAP) and Change in organic revenue (non-GAAP), are defined as GAAP Revenue and change in GAAP Revenue (the most directly comparable GAAP financial measures), adjusted for changes in foreign currency exchange rates (if applicable) and excluding the impact of recent acquisitions, divestitures and discontinuations, as defined below. Organic revenue (non-GAAP) is impacted by changes in product volumes and price. The price component is made up of two key drivers: (i) changes in product gross selling price and (ii) changes in sales deductions. The Company uses organic revenue (non-GAAP) and change in organic revenue (non-GAAP) to assess performance of its reportable segments, and the Company in total. The Company believes that providing these non-GAAP measures is useful to investors as they provide a supplemental period-to-period comparison. The adjustments to GAAP Revenue to determine Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP) are as follows: Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management's control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue and change in organic revenue exclude from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue and change in organic revenue exclude from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. Constant Currency Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company's financial results and financial position. To assist investors in evaluating the Company's performance, we have adjusted for the effects of changes in foreign currencies. The impact of changes in foreign currency exchange rates is determined by comparing the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Please also see the reconciliation tables below for further information as to how these non-GAAP measures and ratios are calculated for the periods presented. Adjusted Cash Flows from Operations (non-GAAP) Adjusted cash flows from operations (non-GAAP) is Cash provided by operating activities (its most directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal settlements, net of insurance recoveries and restitutions, (ii) payments of transformation costs, (iii) payments for separation costs and separation-related costs, (iv) interest payments charged against premium, (v) fees paid in connection with the debt refinancing transactions and (vi) payments of acquired IPR&D. As these payments arise from events outside of the ordinary course of continuing operations as discussed above, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's cash from operations, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) is Adjusted EBITDA (non-GAAP) adjusted to remove Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP). Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP) is Income (loss) before income taxes of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's interest expense, depreciation, amortization and other adjustments as described above, allocated or attributable to Bausch + Lomb. Adjusted EBITDA excluding Bausch + Lomb is not intended to be, and may not be, representative of income from continuing operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to Bausch Health excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented. Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) is Adjusted Cash Flows from Operations (non-GAAP) adjusted to remove Adjusted Cash Flows from Operations attributable to Bausch + Lomb (non-GAAP). Adjusted Cash Flows from Operations attributable to Bausch + Lomb (non-GAAP) is Cash Flows from Operations of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's payment of separation costs, separation-related costs and other adjustments as described above, allocated or attributable to Bausch + Lomb. Adjusted Cash Flows from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Cash Flows from Operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to BHC excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the cash flows or Adjusted Cash Flows from Operations attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented. Management believes that Adjusted EBITDA excluding Bausch + Lomb (non-GAAP), Adjusted Cash Flows from Operations (non-GAAP) and Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP), along with the GAAP and other non-GAAP measures used by management, most appropriately reflects how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflect our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) and Adjusted Cash Flows from Operations (non-GAAP) targets. Net Debt (non-GAAP) Net Debt (non-GAAP) is long-term debt (its most directly comparable GAAP financial measure) adjusted for premiums, discount and issuance costs less unrestricted cash and cash equivalents. Net Debt excluding Bausch + Lomb (non-GAAP) Net Debt excluding Bausch + Lomb (non-GAAP) is Net Debt (non-GAAP) adjusted to remove Net Debt attributable to Bausch + Lomb (non-GAAP). Net Debt attributable to Bausch + Lomb (non-GAAP) is long-term debt of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's premiums, discount and issuance costs less unrestricted cash and cash equivalents allocated or attributable to Bausch + Lomb. Management believes Net Debt (non-GAAP) and Net Debt excluding Bausch + Lomb (non-GAAP) provides investors with useful information regarding the Company's overall leverage position and its ability to service its outstanding debt obligations. . (a)The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a.(b)Adjusted earnings per share attributable to Bausch Health Companies Inc. is calculated using diluted weighted average common shares of 378.5 million which includes the diluted effect of stock options and restricted stock units of 4.6 million (the "Dilutive Shares") for the six months ended June 30, 2026. The Dilutive Shares were not included in the determination of basic and diluted loss per share attributable to Bausch Health Companies Inc. as the effect of including them would have been antidilutive. 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It has been about a month since the last earnings report for Bausch Health (BHC). Shares have lost about 5.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Bausch due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. BHC Q1 Earnings Miss Estimates, Sales Grow on Salix & Solta Strength Bausch Health reported mixed results for the first quarter of 2026. Adjusted earnings per share (EPS) of 78 cents missed the Zacks Consensus Estimate of 81 cents but were up from 59 cents recorded in the year-ago quarter. Total revenues of $2.5 billion were up 12% year over year. The top line beat the Zacks Consensus Estimate of $2.4 billion. Excluding the impact of a foreign exchange of $71 million, acquisitions of $33 million and divestitures and discontinuations of $4 million, revenues increased 7% organically year over year. BHC's Q1 in Detail The company reports revenues under two segments: Bausch Health and Bausch + Lomb. Bausch Health’s revenues totaled $1.3 billion, up 14% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products. Salix’s revenues totaled $639 million, up 18% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $559 million, up 21%, led by strong demand growth. Relistor’s revenues were $40 million. However, Trulance’s revenues of $31 million were down 2% year over year. Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults. Salix’s revenues beat the Zacks Consensus Estimate of $575 million and our model estimate of $589 million. International revenues totaled $285 million, up 9% year over year, led by 12% growth in EMEA markets. Latin America markets also put up a solid performance driven by commercial product growth, offset by lower volume. However, sales in Canada were down 4% year over year. The reported figure beat the Zacks Consensus Estimate of $272 million and our model estimate of $268 million. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, revenues were relatively flat on an organic basis. Solta Medical reported revenues of $171 million, up 51% year over year, driven by China and South Korea. The figure beat the Zacks Consensus Estimate of $122 million and our model estimate of $117 million. Results also benefited from Solta’s acquisition of Shibo's full service aesthetics distribution business in China. Diversified Product’s revenues amounted to $185 million, down 10% from the year-ago level. Within this segment, neuroscience sales decreased 4% year over year due to lower volume. The Dermatology business was down 28% due to partial channel destocking despite solid Cabtreo and Jublia demand. Sales from the Dentistry business were $21 million. The Generics business generated sales of $21 million. Diversified Product’s revenues missed the Zacks Consensus Estimate of $219 million and our model estimate of $228 million. Revenues from Bausch + Lomb totaled $1.24 billion, up 9% year over year, driven by growth across each business — vision care, surgical and pharmaceuticals. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.22 billion. Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis. BHC’s Pipeline Development The registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026. The FDA had earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH. An internal review on amiselimod, an S1P modulator, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing. The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, the Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025. It was launched in Canada in February 2026. BHC Updates 2026 Guidance BHC now expects 2026 revenues to be in the range of $10.670-$10.920 billion (previous guidance: $10.625-$10.875 billion). The Zacks Consensus Estimate is pegged at $10.68 billion. Excluding Bausch + Lomb, revenues are still projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are now expected to be in the range of $5.420-$5.520 billion (previous guidance: $5.375-$5.475 billion). It turns out, estimates review have trended upward during the past month. Currently, Bausch has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research