BLCO

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the medical devices & supplies - specialty industry, including Bausch + Lomb (NYSE:BLCO) and its peers. The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies, although specialty devices are more niche. The capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers. The 7 medical devices & supplies - specialty stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1%. Thankfully, share prices of the companies have been resilient as they are up 5% on average since the latest earnings results. With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE:BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions. Bausch + Lomb reported revenues of $1.39 billion, up 9.1% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance meeting analysts’ expectations but EPS in line with analysts’ estimates. Interestingly, the stock is up 5% since reporting and currently trades at $17.44. Is now the time to buy Bausch + Lomb? Access our full analysis of the earnings results here, it’s free. Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep. Inspire Medical Systems reported revenues of $200.6 million, down 7.6% year on year, outperforming analysts’ expectations by 3%. The business had an exceptional quarter with a beat of analysts’ EPS estimates. Inspire Medical Systems delivered the highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 17.7% since reporting. It currently trades at $61.46. Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free. With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation. Enovis reported revenues of $582.8 million, up 3.2% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates. Enovis delivered the weakest performance against analyst estimates and weakest full-year guidance update among its peers. As expected, the stock is down 16.5% since the results and currently trades at $25.20. Read our full analysis of Enovis’s results here. With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures. Globus Medical reported revenues of $789.6 million, up 5.9% year on year. This number surpassed analysts’ expectations by 0.9%. It was a very strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates. The stock is up 5% since reporting and currently trades at $85.10. Read our full, actionable report on Globus Medical here, it’s free. With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens. STAAR Surgical reported revenues of $93.54 million, up 111% year on year. This print beat analysts’ expectations by 3.3%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates. STAAR Surgical achieved the biggest analyst estimate beat and fastest revenue growth in the group. The stock is down 8% since reporting and currently trades at $23.37. Read our full, actionable report on STAAR Surgical here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Dual-action eye drop targeting both evaporative and inflammatory dry eye disease moving to Phase 3 Positive Phase 1b results for ocular surface pain candidate validate TRPV1 antagonist approach and strengthen confidence in ongoing Phase 2 study Combined potential peak sales exceeding $2 billion assuming successful development and commercialization1 VAUGHAN, Ontario, August 24, 2026--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced that two of its pharmaceutical pipeline assets – both first-in-class treatments – will advance to new trials based on recent clinical results. "Helping people see better to live better starts with tackling the challenges patients still face every day," said Bausch + Lomb CEO Brent Saunders. "These results support our approach to developing differentiated therapies that have the potential to address significant unmet needs and change the standard of care in eye health." Dry Eye Disease Dual-Action Eye Drop: Phase 2 Results Support Advancement to Phase 3 with Day 15 Primary Endpoint Dry eye disease is a complex, multifactorial condition affecting millions of people worldwide. While existing prescription therapies can effectively address individual causes of dry eye disease, no approved treatment addresses both the inflammatory and evaporative drivers of the disease in a single therapy. Patients often continue to experience persistent symptoms despite treatment, highlighting the need for new approaches that more comprehensively address the condition. Bausch + Lomb has developed a first-in-class dual-action eye drop that combines 5% lifitegrast (the active ingredient in XIIDRA®) and perfluorohexyloctane (PFHO; the active ingredient in MIEBO®) into a single twice-daily treatment designed to address both ocular surface inflammation and tear evaporation – two of the primary underlying causes of dry eye disease. Study Design and Results A four-week, randomized, double-masked, parallel-group, active-controlled Phase 2 study enrolled 443 patients with dry eye disease (age 18 and older) across six arms: the dual-action eye drop, lifitegrast alone, PFHO alone and three vehicle masking controls. This was the first clinical study of the combination, and Day 29 was selected as the primary endpoint timepoint in the absence of prior human data on the timing of the combined treatment effect. The study did not meet its primary endpoint of superiority over lifitegrast alone in reducing total corneal fluorescein staining (tCFS) from baseline at Day 29, although results numerically favored the dual-action eye drop (p=0.196). A pre-specified secondary analysis at Day 15 – a timepoint accepted by the Food and Drug Administration as a registrational primary endpoint for tCFS – showed a significant reduction in mean change from baseline tCFS for the dual-action eye drop versus lifitegrast alone (p=0.0007). At Day 15, 41.6% of patients treated with the dual-action eye drop achieved a ≥3-unit improvement in tCFS, compared with 18.8% of patients treated with lifitegrast alone and 31.6% treated with PFHO alone. The safety profile in all three treatment groups was consistent with the established profiles of XIIDRA and MIEBO, with no new safety signals identified. Path to Phase 3 The data provide a clear path forward, and Bausch + Lomb will advance the dual-action eye drop into Phase 3 development with a primary endpoint at Day 15. Notably, the dual-action eye drop achieved these results with more than 50% less lifitegrast volume than XIIDRA and half the dosing frequency of MIEBO. The company believes this profile – a rapid treatment effect at a lower drug load and simplified dosing regimen – supports the design of Phase 3 studies to demonstrate superiority to both individual therapies. Details of the Phase 3 program will be shared in the coming months. "This was the first time this combination has been studied in humans, and it did exactly what a Phase 2 should do: demonstrated a rapid, robust treatment effect and told us precisely when to measure it," said Yehia Hashad, MD, executive vice president, R&D and chief medical officer, Bausch + Lomb. "With a pre-specified result of this strength at a registrationally accepted timepoint achieved with less drug than the individual therapies, and the ability to increase the dose based on an acceptable safety profile, we’re advancing to Phase 3 with a clear design and high conviction." Ocular Surface Pain Program: Positive Phase 1b Results Confirm TRPV1 Mechanism in Humans and Support Continued Development of BL1332; Phase 2 Results Expected Within Next Few Months Ocular surface pain is the leading reason patients seek care from eye care professionals and can affect individuals with dry eye disease, corneal disease and post-surgical complications. Despite its prevalence and impact on quality of life, there are currently no approved therapies specifically designed to target the underlying neurosensory pathways responsible for ocular surface pain, leaving many patients with limited treatment options. Bausch + Lomb has developed BL1332, a first-in-class topical TRPV1 antagonist designed to target a key receptor involved in ocular pain signaling. Unlike therapies that primarily address associated signs or symptoms, BL1332 is intended to directly modulate the biological pathways that drive ocular surface pain. The investigational therapy is being evaluated as a potential treatment for multiple forms of ocular surface pain, including post-surgical, acute and chronic conditions. Based on its mechanism and clinical experience to date, the company believes BL1332 could support development across multiple ocular surface pain patient populations. Study Design and Results A Phase 1b study evaluated BL1332 0.30% ophthalmic solution in a capsaicin-induced ocular pain challenge model in healthy adult participants. The study met its primary endpoint, demonstrating a statistically significant reduction in pain intensity compared with vehicle and providing the first clinical confirmation that TRPV1 blockade can reduce ocular pain in humans beyond acute post-surgical pain. At five seconds following capsaicin challenge, BL1332-treated eyes experienced a 5.5-point reduction in mean pain intensity versus vehicle (p<0.0001). In exploratory analyses, 68.2% of BL1332-treated eyes achieved complete pain resolution compared with 0% of vehicle-treated eyes (p<0.0001), while no BL1332-treated eyes reported severe pain compared with 36.4% of vehicle-treated eyes receiving vehicle (p<0.01). Mean duration of pain following capsaicin challenge was also markedly shorter with BL1332 than with vehicle (1.6 versus 37.8 seconds; p<0.0001). The safety profile was acceptable and consistent with previous clinical experience, with no new safety signals identified. The company believes these results validate the underlying mechanism of BL1332 and provide a foundation for ongoing studies designed to evaluate the therapy in patients experiencing clinically relevant ocular pain conditions. Path Forward Bausch + Lomb is currently evaluating BL1332 in an ongoing Phase 2 study in patients experiencing pain following photorefractive keratectomy surgery, with topline results expected in the coming months. The study is intended to assess the potential of BL1332 in a real-world clinical setting and represents the next step in defining the therapeutic profile of the program. Beyond post-surgical pain, the company believes BL1332's mechanism may have potential relevance across multiple ocular surface pain conditions, including pain associated with dry eye disease and other acute and chronic ocular disorders. Future development decisions will be informed by ongoing clinical results and discussions with regulatory authorities. "These results provide the first clinical evidence that targeting TRPV1 can meaningfully reduce ocular pain in humans that have not just undergone surgery," stated Hashad. "They also strengthen our confidence in the mechanism as we continue evaluating BL1332 in patients with clinically relevant pain conditions." Potential Financial Impact As shared at Investor Day in November 2025, estimated peak sales for the dual-action dry eye disease therapy are approximately $700 million, assuming successful development and commercialization. Peak sales for BL1332, the ocular surface pain candidate, are estimated at approximately $1.4 billion, assuming successful development and labeling across multiple ocular surface pain conditions. Both programs are expected to provide a meaningful financial contribution upon approval and commercialization beyond 2028, further supporting Bausch + Lomb's long-term growth outlook. The company remains on track to achieve the three-year targets outlined at Investor Day. Call with R&D Leadership Today at 5:30 p.m. ET, Brent Saunders will be joined by Dr. Yehia Hashad and Dr. Mayssa Attar for a presentation of the results followed by a Q&A session. Details: About Bausch + Lomb Our mission is simple – we help people see better to live better, all over the world. For nearly two centuries we’ve evolved with the changing needs of patients and customers, and our commitment to innovation and improving the standard of care in eye health has never been stronger. From contact lenses to prescription products, over-the-counter options, surgical devices and more, we’re turning bold ideas into better outcomes through passion, perseverance and purpose. Learn more at www.bausch.com and connect with us on Facebook, Instagram, LinkedIn, X and YouTube. Forward-looking Statements This news release may contain forward-looking information and statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements may generally be identified by the use of the words "anticipates," "seeks," "expects," "plans," "should," "could," "would," "may," "will," "believes," "potential," "pending" or "proposed" and variations or similar expressions. Forward-looking statements including the company’s estimates for potential peak sales of its pipeline products and the company’s plans for future development and the timing of same. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb 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, unless required by law. © 2026 Bausch + Lomb. View source version on businesswire.com: https://www.businesswire.com/news/home/20260824701843/en/ Contacts Media Contact: Caryn [email protected] (908) 493-1381 Investor Contact: George [email protected] (877) 354-3705 (toll free)

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Vice President of Investor Relations and Business Insights - George Gadkowski Chairman and Chief Executive Officer - Brenton L. Saunders Chief Financial Officer - Osama Eldessouky President of Surgical - Luc Bonnefoy Operator: Good morning, and welcome to Bausch + Lomb's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to George Gadkowski, Vice President of Investor Relations and Business Insights. Please go ahead. George Gadkowski: Thank you. Good morning, everyone, and welcome to our second quarter 2026 financial results conference call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Brent Saunders; Chief Financial Officer, Mr. Sam Eldessouky; and President of Surgical, Mr. Luc Bonnefoy. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, I would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures and ratios. For more information about these measures and ratios, please refer to Slide 1 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website. The financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter unless required by law and not to update or affirm guidance other than through broadly disseminated public disclosure. With that, it's my pleasure to turn the call over to Brent. Brenton L. Saunders: Thank you, George, and thanks to everyone joining us today, especially my colleagues around the world whose commitment and passion are at the heart of everything we achieve. Today's presentation will follow a familiar format. I'll start with an overview of the quarter, and Sam will walk through the details of another beat and raise. We'll then cover growth drivers by segment, including an update from our Surgical President, Luc Bonnefoy. But the format won't be the only thing that sounds familiar. Leverage in the P&L, margin expansion, broad-based revenue growth, improved cash flow generation. These have been themes since we unveiled our three-year plan for growth at Investor Day last November. And in the second quarter, progress continued at an accelerated pace. You see that here, 8% constant currency revenue growth once again reflects consistent performance across our Pharmaceuticals, Vision Care and Surgical segments. Continued momentum from each business creates a stronger, more resilient company and more durable growth profile over time. 28% adjusted EBITDA growth and 17.6% adjusted EBITDA margin demonstrate the quality of the growth we referenced last quarter building on the operating leverage and margin expansion that began in the second half of 2025. Of note, SG&A continues to decline as a percentage of revenue, which Sam will cover later. If you're wondering where our confidence in meeting or exceeding our three-year plan comes from, look no further than these charts. On the left, you see the story we've been telling, constant currency revenue growth accelerating from 6% in the first quarter to 8% in the second and adjusted EBITDA margin expanding from 16.1% to 17.6%, an increase of 150 basis points, growth and margin moving in the same direction quarter after quarter. But the more important story is on the right because expanding margins only matter if they translate into cash, and they are. Adjusted cash flow from operations more than tripled from $45 million in the first quarter to $161 million in the second. Year-to-date cash conversion is approximately 46%, in line with our expectations. Stronger cash generation translated into meaningful balance sheet progress, helping us lower our leverage by a full turn from this point last year. Credibility doesn't come from making bold promises. It comes from making the right commitments and delivering on them quarter after quarter, year after year. That's been our approach from day one. We communicate our priorities, align our teams behind them and execute with discipline. The say-do mentality has helped us build trust with stakeholders and more importantly, has positioned us to create sustainable long-term value. In other words, companies earn credibility through consistency. You see that discipline reflected across these pillars. Second quarter growth was broad-based with standout double-digit performance from Pharmaceuticals and Surgical. The top-line momentum translated directly into profitability. $246 million in adjusted EBITDA, up 28% year-over-year. Again, growth and margin working together, consistent with the operating model we outlined. Our selling and operational execution is showing up in the numbers, too. In Surgical, the accelerating mix shift towards premium IOLs is expanding both revenue and margin. In Pharmaceuticals, Miebo and Xiidra both delivered strong revenue growth, the result of a refreshed market access approach and disciplined commercial execution. Last quarter, we laid the groundwork for the introduction of Orphia, an AI-powered digital health platform designed to reduce the operational burden between physicians and their patients. Orphia was built to serve every eye care provider, no matter what they prescribe or what products they use. It fills a real void and it's already generating encouraging feedback within the eye care community. In our third pillar, what you're seeing is a pipeline delivering on two time horizons at once. In the near term, we have concrete milestones expected to land this year. We filed our FDA submission for our ELIOS implant-free MIGS excimer laser in the second quarter and readouts for our dual-action dry eye candidate and ocular surface pain candidate are expected in the second half of this year. Looking further out, we have programs that are expected to extend our runway well into the next decade and into categories where the unmet need is only growing. We've been in this business long enough to know that not every program will make it to the finish line. That's the nature of innovation in eye health. But that's precisely why we built the pipeline the way we have. Breadth and depth aren't buzzwords for us. They're a deliberate design choice. A robust diversified pipeline means we're never dependent on any single asset to deliver, and it's what gives us confidence in sustained cadence of milestones quarter after quarter, year after year. You see that breadth and depth here. Rather than the linear pipeline timeline you're used to seeing from us, this view organizes our assets by category from dry eye disease and surgical to consumer eye health, contact lenses, retinal disease and increasingly AI and computational biology. We believe this distinguishes Bausch + Lomb among eye care companies. But depth of portfolio is only half the story. The other half is where the world is heading, an aging global population, the rapid rise of childhood myopia, longer screen time across every age group, a growing prevalence of dry eye and retinal disease. These aren't temporary tailwinds. They're structural shifts in demand, and each of the programs you see here is designed to meet one of them. As a reminder, we're expanding EBITDA margins while increasing our R&D spend, which is another way of saying we're not sacrificing innovation for metrics. This is what balance looks like. Every segment growing, every segment contributing. Surgical revenue up 16% on a constant currency basis. Pharmaceuticals up 14%. Vision Care up 4%. The headline isn't just the numbers are strong. It's that they're coming from everywhere. Pharmaceuticals continued its momentum with Miebo and Xiidra once again anchoring the segment's growth. Vision Care delivered another quarter of dependable performance with contact lenses up 5% on a constant currency basis, powered by ongoing strength in our daily SiHy portfolio. I'd like to spend a moment on Surgical. Last quarter, we said the U.S. field force rebuild was the right strategic decision and that the business would strengthen sequentially through the balance of the year. One quarter later, 16% constant currency revenue growth and 17% versus 2Q '24, our premium IOL portfolio delivered 175% reported revenue growth and premium mix continued to expand both in the U.S. and globally. Every one of the leading signals we pointed to last quarter, productivity, execution, sales trajectory is now translating directly into results. The results support the strategic actions we took. We expect Surgical to remain a meaningful growth driver from here, and we're entering the second half of the year with real momentum behind us. Sam, over to you for financial drivers and our refreshed outlook. Osama Eldessouky: Thank you, Brent, and good morning, everyone. Before we begin, please note that all of my comments today will be focused on growth expressed on a constant currency basis, unless specifically indicated otherwise. In addition, all references to adjusted EBITDA will exclude acquired IPR&D. Q2 was another strong quarter and further evidence of the momentum across the business. We delivered meaningful top-line growth and margin expansion. We also generated strong operating leverage with adjusted EBITDA up 28% on a reported basis. Revenue growth and margin expansion are now also translating into stronger cash generation and deleveraging to strengthen the balance sheet. This is the progression we outlined. First, rejuvenating revenue growth; second, expanding margins and now converting the stronger earnings into cash and improving our leverage. We are doing this while continuing to invest in the R&D pipeline. Stepping back, this is the fourth consecutive quarter of delivering on our priorities. This strengthens our confidence that we remain on track to achieve our three-year targets. Turning now to our financial results on Slide 9. Total company revenue for the quarter was $1.394 billion, up 8%, driven by broad-based growth across all our segments. Foreign exchange was a tailwind to revenue of approximately $12 million in the second quarter. Now let's dive into each of our segments in more detail. Vision Care second quarter revenue of $784 million increased by 4% with growth in both consumer and contact lenses. Let me go over a few highlights in our Vision Care segment. The consumer business grew 3% in the quarter. The consumer dry eye portfolio delivered $123 million of revenue in the second quarter, up 5%. Growth was driven by Blink, which was up 12% and Artelac, which was up 3%. LUMIFY generated $63 million of revenue, up 2%. Eye vitamins, PreserVision and Ocuvitedelivered $104 million of revenue in the quarter, up 1% on a reported basis. Overall, we saw consumer demand strengthened through the quarter with healthy consumption trends exiting Q2 and continuing into July. Contact lens revenue grew 5% in the second quarter, driven by broad-based performance across all key product families and all geographies. Across the product families, Daily SiHy grew 16%, Biotrue was up 13% and ULTRA was up 9%. The business delivered balanced growth across geographies, with the U.S. up 5% and international up 6%. The international performance was strong across all regions. EMEA at 11%, Latin America at 7%, Canada 11% and Asia Pac 3%. Moving now to the Surgical segment. Second quarter revenue was $256 million, up 16% versus prior year. To better frame the underlying growth trajectory, we're also comparing surgical performance to the second quarter of 2024, which represents the pre-recall baseline. Versus that baseline, revenue was up 17%. Implantables delivered 64% growth. Premium IOLs were a significant contributor, growing at 175% in the quarter. This reflects the continued transition of the portfolio towards higher-margin premium categories. Consumables were up 4% in the second quarter and equipment revenue was up 2%. Revenue in the Pharma segment was $354 million in Q2, an increase of 14%. Our U.S. Pharma business delivered 17% growth in the quarter, mainly driven by continued strength in dry eye. The dry eye franchise grew 23% with both Miebo and Xiidra contributing to the performance. Miebo delivered another strong quarter and remains on an impressive growth trajectory. In Q2, revenue was $91 million, up 44%. Average weekly TRxs increased by 29% year-over-year, which speaks to the continued momentum we are seeing behind the brand. Xiidra also delivered solid growth in the quarter. Consistent with our commitment to deliver Xiidra revenue growth, Q2 Xiidra revenue was $87 million, up 6%. International Pharma grew 8% in Q2, adding to the segment's broad-based performance. Now let me walk through some of the key non-GAAP line items on Slide 10. Adjusted gross margin in the second quarter was 62.2%, up 160 basis points year-over-year. The expansion was driven by favorable mix from higher-margin parts of the portfolio, including in Pharma and Surgical as well as continued benefits from productivity initiatives. This builds on the progress we saw in Q1 and demonstrates continuous execution against our strategy. In Q2, we invested $114 million in adjusted R&D, an increase of 19% year-over-year. This investment reflects our continued focus on advancing a deep and diversified pipeline designed to capture substantial growth opportunities. In Q2, adjusted SG&A margin improved by approximately 130 basis points, adding to the significant progress delivered in Q1. It reinforces the durability of the structural changes implemented in 2025 and our ability to drive growth with a lower fixed cost structure. Second quarter adjusted EBITDA was $246 million, up 28% year-over-year on a reported basis, and adjusted EBITDA margin was 17.6%, up 260 basis points year-over-year. Q2 adjusted cash flow from operations was $161 million, while CapEx was $71 million and adjusted free cash flow was $90 million. We are seeing the benefits of our revenue growth and margin expansion translate into healthy cash flow generation. This is exactly the progression we have previously outlined, delivering on the top line, expanding margins and converting that operating performance into cash. Net leverage as of the end of Q2 was approximately 4.7x. This reflects a full turn reduction since our Investor Day. Net interest expense was $89 million for the quarter. Adjusted EPS, excluding acquired IPR&D was $0.16 in Q2 compared with $0.07 in the prior year quarter. Slide 12 brings together the key message from the first half of the year. We are delivering meaningful margin expansion while continuing to invest in the pipeline and future growth. In the first half of the year, adjusted EBITDA margin increased by approximately 370 basis points versus the prior year. This reflects meaningful progress across both gross margin and operating efficiencies. Gross margin expansion continues to be driven by favorable mix in premium areas of the portfolio, together with manufacturing and productivity initiatives. These drivers contributed approximately 170 basis points of year-to-date adjusted EBITDA margin expansion. At the same time, we are generating strong operating leverage. The structural changes implemented in 2025 are enabling us to deliver growth with a lower fixed cost structure, contributing approximately 250 basis points of year-to-date adjusted EBITDA margin improvement. Importantly, we are continuing to invest for the future. We increased R&D investments by 50 basis points, supporting our deep and diversified pipeline and the substantial opportunities we see across the portfolio. The takeaway is clear. Our strategy is converting into strong financial results. We are expanding margins through mix, productivity and operating discipline and driving cash flow. We are doing this while continuing to invest in innovation and sustainable long-term growth. Now turning to our 2026 guidance on Slide 14. We continue to see solid momentum, supported by strong business fundamentals and a healthy eye care market. Following a strong first half, we are increasingly confident in our ability to deliver over the balance of the year. We are raising our full year revenue guidance by $20 million to a range of $5.440 billion to $5.540 billion, driven by stronger expectations for the underlying business. Specifically, we are increasing the business outlook by $25 million, partially offset by a $5 million reduction in expected currency tailwinds. The updated revenue guidance reflects constant currency growth of approximately 5.8% to 7.7%, which is 50 basis points above our prior outlook. We are also raising full year adjusted EBITDA guidance by $15 million to a range of $1.025 billion to $1.075 billion. At the midpoint, this reflects an adjusted EBITDA margin of approximately 19.1% and year-over-year adjusted EBITDA growth of approximately 18%. We continue to execute our margin expansion strategy with discipline and expect meaningful operating leverage in 2026 with adjusted EBITDA growing at nearly 3x the rate of revenue. In terms of the other key assumptions underlying our guidance, for the full year 2026, we now estimate a revenue tailwind from currency of approximately $45 million, down from approximately $50 million previously as exchange rates have moderated. We continue to expect adjusted gross margin to be approximately 62% and investments in R&D to be in the range of 7.5% to 8% of revenue. Below the line, our expectations remain unchanged with interest expense of approximately $365 million, an adjusted tax rate of approximately 19% and full year CapEx of approximately $285 million. Our outlook continues to show earnings growing significantly faster than revenue, reflecting the operating leverage in our business and the benefits of the actions we've taken. As we move through the remainder of the year, our focus remains on execution, and we are increasingly confident in our path to the three-year targets. And now I'll turn the call back over to Brent. Brenton L. Saunders: Thanks, Sam. Now Luc Bonnefoy, President of our Surgical business, will walk you through what's driving segment growth and why we're confident in what's ahead. Luc Bonnefoy: Thank you, Brent. I will start where the momentum is most visible, implantables. Implantables grew 64% in the quarter on a constant currency basis and 37% versus Q2 2024. That's a two-year growth story, not a one quarter print and it is the clearest signal you will see that our premium-led eyewear strategy is working exactly as designed. In 2023, premium eyewear represented 6% of our surgical revenue, 7% in 2024, 9% in 2025 and 13% in the second quarter of this year. That curve is not just deepening, it is compounding. And every point of premium mix that move into the portfolio brings higher margin, deeper surgeon relationship and a stronger pull-through effect across the rest of the business. In other words, this is not just growth. It is a kind of growth that transforms what the surgical business is. That transformation isn't happening by accident. It is the result of a deliberate strategy built on three pillars. First, driving growth in premium IOLs. Our premium portfolio today anchors on enVista, Aspire and Envy, the diffractive offering powering our current mix shift alongside our expanding Lux family business with LuxSmart and LuxLife in the market. Complementary LuxBoost and LuxLift are expected to launch in 2028. The cadence designed to keep the mix shift on the trajectory you just show well into the back half of the decade. Second, launching equipment innovation, Elios, Synera, and Sinova each represents a step change in what surgeon can offer their patients and it strengthens our pull-through economics with every placement. Equipment isn't just a revenue line for us. It is a strategic asset that anchors long-term customer relationships and creates a platform for consumables and implantables growth downstream. Third, expanding manufacturing capabilities and optimizing our network. This is a piece that doesn't always make the headline, but shows up directly in margin. As we bring more premium product in-house and streamline our supply network, while driving cost efficiency, deepening customer loyalty and reducing complexity across the manufacturing footprint. That's how we are building operating leverage into the business, not just the top line but structurally. Put those three together and you have the engine behind what Brent described earlier, a surgical business that isn't just growing, but transforming as it grows. And with the launch calendar and innovation pipeline that extend well into 2028 and beyond, we believe the trajectory is sustainable. Brenton L. Saunders: Thanks, Luc. Now to the two brands doing the heavy lifting of pharmaceuticals. Miebo's revenue grew 44% to $91 million in the quarter, while Xiidra grew 6% to $87 million. Individually, those are strong numbers. Together, they tell a bigger story, Miebo and Xiidra delivering 27% combined revenue growth in the first half of this year versus the first half of 2025. That's why we're increasingly confident in what comes next. Based on where Miebo is trending, we expect it to soon become the branded industry leader in the treatment of dry eye disease, a category with real unmet patient need and a treatment landscape that's been waiting for a differentiated option. That's the position Miebo was built to fill. Paired with Xiidra, a proven established therapy with its own loyal prescriber base, we have a dry eye portfolio that competes on both ends of the treatment paradigm. That's a structural advantage, and it's why we believe pharmaceuticals will remain one of the strongest engines of growth for this company this year and beyond. Turning to consumer, where two recent launches are already shaping the next phase of growth for the business. Blink Triple Care preservative-free began shipping in the U.S. earlier this year, and it's already proving to be a category expander with roughly 66% of its volume coming from new users to the franchise. That's exactly what a healthy launch looks like, pulling new consumers in rather than cannibalizing what's already there. And it helped push the broader Blink franchise to 12% reported revenue growth in the quarter, continuing a long-running upward trajectory. PreserVision AREDS3 continues to gain shelf presence and digital prominence. The expanding distribution is one of the reasons the PreserVision franchise still delivered growth even against some consumer headwinds early in the quarter that track closely to gas prices. And it's worth remembering that eye care professionals play an outsized role in recommending eye vitamins. As more ECPs become familiar with AREDS3, we expect that to help blunt any impact from private label AREDS2. Bottom line, the underlying brand health is strong. And as AREDS3 availability continues to grow, we expect PreserVision to keep gaining ground. Two franchises, two different playbooks and a consumer engine that keeps humming, reliably adding to the Bausch + Lomb growth story quarter after quarter. Here's a closer look at what's driving contact lens performance, and the story really is broad-based. In the U.S., reported revenue grew 5%. Internationally, constant currency revenue grew 6%. That's a balanced global growth profile powered by three franchises pulling in the same direction. Our Daily SiHy portfolio was up 16%, ULTRA Monthly up 9% and Biotrue ONEday up 13%, all on a constant currency basis. What that mix tells you is that our growth isn't concentrated in a single lens or a single modality or a single geography. It's spread across our portfolio and across our markets, which is exactly the kind of foundation you want when you're competing in a category with structural tailwinds and long product cycles. And we're not standing still. The next wave of contact lens innovation is already in motion with a disciplined global rollout schedule and a development pipeline designed to keep this franchise growing well into the next decade. Contact lenses have been a dependable engine for Bausch + Lomb for quite some time. Based on where we sit today and where we're headed, we expect it to remain one for years to come. A quick word on the pipeline before we open it up for questions. You've already seen the breadth and depth of the portfolio built to meet where the world is going. This slide shows the pace of progress, milestones delivered in the first half, more expected in the second and a cadence that carries us into 2027 and well beyond. Operator, let's open it up for questions. Operator: And the first question today is coming from Patrick Wood from UBS. Patrick Wood: I guess maybe just to start, I had two. Just to start, big picture, thinking about the three-year plan. Obviously, this was laid out back in November, but how do you feel things have gone since then? Do you feel more confident? Is the shape of the plan coming together in the same kind of way that you had anticipated? Or are there any areas that maybe are stronger or weaker than the framework that you had originally laid out because it's obviously very unpredictable. Brenton L. Saunders: Yes. Great. Thank you, Patrick. Congrats on the new platform and role and great to hear from you. So yes, look, in November, we laid out an ambitious three-year plan. And I think if you look at every quarter we've printed since Investor Day, we have been proving that we can deliver on our commitments. And to be fair, I think it's really very important to me and our team at Bausch + Lomb that we do what we say we're going to do and prove it quarter after quarter, year after year. And so if you look at where we stand and you look at the quarters printed since the November Investor Day, I think we're showing it. This quarter, 8% constant currency revenue growth, EBITDA growth of 28%, cash flow that's nearly double last year's levels of cash flow, reduced leverage by approximately one full turn since Investor Day. And so if you take all those metrics together, you see this business, Bausch + Lomb is moving very quickly and very strongly in the right direction with strong quality and broad-based growth. And it's not really a one-quarter story, as I've mentioned, it's a multi-quarter story. We're approaching, what, three or four quarters into our commitments. We've delivered on each one, and I'm highly confident we'll continue to do that. The -- a lot of the improvements we've made through our Vision '27 are structural. They're permanent. You see it in the SG&A line. You see it in the product mix. You see it in the gross margin. These are really important. And -- and I think what's -- what I'm most proud of is we've been able to do that and see that margin expansion while we still invest in innovation and feed the business for long-term growth. And so net-net, Patrick, the business is stronger than it's ever been. We have strong momentum. We have strong growth plans. We have a strong pipeline, and we're continuing to generate cash at a faster pace and continuing to delever. So these are all very strong proof points or evidence that we're on track, and we are going to deliver or exceed the commitments we made last November at our Investor Day. Patrick Wood: And then just as a quick follow-up. You guys obviously touch the consumer in a bunch of different categories in a bunch of different ways. Clearly, the contact number is still under really good shape. But your overall view on the health of the consumer, particularly on the U.S. side, any signs of how things are going overall or pretty stable? Brenton L. Saunders: I think it's relatively stable. I think the one thing that we track very carefully, and it's -- if you look at the consumer and you look at the consumption data from retailers, it tracks very closely to the price of gasoline. And so we know what's happening with the price of gas, right? It keeps fluctuating. And we saw that in the second quarter. We started off with a little more pressure on consumption. And as prices of oil came down or the price of the pump came down, consumption grew, and we ended stronger than we started. And so we keep an eye on that. That being said, this is a very resilient business. What we see is sometimes trade down to smaller pack sizes or more promotionally sensitive in those times. But suffice it to say, I think the consumer is relatively healthy. We do have to keep an eye on gas, but I think that our business was built to be resilient to the consumer, and we can work our way through even that. Operator: The next question will be from Young Li from Jefferies. Young Li: I guess to start, I wanted to ask on Surgical a little bit. Pretty strong growth in the premium IOLs business but that's off of the low comps from the recall. I guess now that it's been a little bit more than a year since you resolved the recall, some of the maybe wait-and-see docs, just kind of curious if they're more comfortable with the product now? And what's the outlook, the continued outlook on growth in that franchise? And how high do you think the premium mix shift can get to in the next one to two years? Brenton L. Saunders: Thanks, Young, for the question. And so maybe I'll start, and then I'll ask Luc Bonnefoy since he's joined us on the call here to get his point of view on this as well. But look, I think, hopefully, this is the last time we have to talk about the recall. As you mentioned, we're a year through it. And I think the Q2 numbers are the final proof point that we need to say that we have recovered extremely well from that. And most importantly, I'm very proud of how our team worked through it and supported our customers with dedication and urgency. That being said, I think the situation is always more complex than the numbers suggest, right? Because during a recall, surgeons didn't stop cataract surgery. They went to competitive products. And so those procedures were performed not with enVista, right, with other products. And so we had to go out and win back those customers one at a time. And the team did that, and they did that because the doctors had confidence in how we handled the recall and more importantly, in the quality control and the quality and outcomes that our enVista platform consistently delivers. And I think when -- if you're out in the market, which I spend a lot of time with our surgeons, they don't even talk about it anymore. They talk about the great results they're getting with the enVista platform, particularly our Aspire and enVista IOLs. And so the progress to date, I think, has been significant. And more importantly, the momentum that the team has built is real. And so maybe I'll turn it over to Luc to add his color. Luc Bonnefoy: Thank you, Brent. Happy to share more details concerning the second quarter for Surgical. Indeed, Q2 shows that we are building real momentum with surgeons and also customers. Like you said, a big part of that is the work our field team is doing every day. The team has been rebuilt, refocused and now staying closer to customer to support them even more effectively in the field. What is very encouraging is that the momentum is showing up in the areas that matter the most for us. And of course, I mean about premium IOLs. That data also show that customer are seeing the value in the portfolio and choosing to engage with us in a more meaningful way. The surgical business not only grew versus last year, but also versus pre-recall levels. To put Q2 performance in context, we look at Q2 versus 2024 as a more normalized pre-recall baseline. On that basis, implantable grew 37% constant currency versus Q2 2024 and total surgical 17%. That reinforces our view that the business is not just recovering, it is strengthening and building momentum. So the focus from here is pretty straightforward, keep showing up for customers, support surgeon in the field and build on the momentum we are seeing. And if we do that, and it is what we plan to do, Surgical will keep getting stronger and play an even bigger role in our long-term growth. Young Li: Can I follow up, I guess, a question on the competitive dynamics, specifically two products, PureSee and Tryptyr. It doesn't seem to be impacting your business much in those categories. Can you maybe comment a little bit more about what you're seeing in the market for those two launches? Brenton L. Saunders: Sure. Happy to. Let's take PureSee and just the premium IOL segment. I think when you look at the dynamics of the cataract market in the first half of this year, you're starting to see a transition to premium. You're seeing monofocal cataract procedure volume kind of flattish, and you're seeing the growth coming from premium. And some of that is something this industry has had -- wanted to see for a long time, and we're starting to see early green shoots of that happening. And that's because I think the IOLs are delivering better than they ever have. And PureSee is a good IOL, and it seems to be sourcing most of its volume from their existing customer base in Alcon. And Envy is a best-in-class trifocal. So it's giving surgeons more options to give better outcomes to patients. And I think we can compete very effectively there. And obviously, we're looking forward to launching enVista Beyond later next year. And so I think we're incredibly well positioned and very competitive in the premium IOL market. Tryptyr, it has its segment to compete in, in the dry eye market, right, and increased tear production. But frankly, the majority of the market is in inflammation and tear evaporation. And there's no doubt, I think, anymore that our franchises of Miebo and Xiidra are the ones with the most momentum, the ones that doctors turn to first when they think about treating a patient for dry eye and the ones that deliver the best results for patients. And so there, I think we're there, I'm easy to say we're the undisputed leader with the most momentum, the largest share of voice and the best product profiles. And so I think we have a very strong position in a category that has a lot of growth yet to build. Operator: The next question will be from Joanne Wuensch from Citi. Unknown Analyst: This is Anthony on for Joanne. Another solid quarter in contact lens. Could you maybe just characterize a bit more what you're seeing regionally, both in terms of market growth and competition? Brenton L. Saunders: Yes, sure. So I think I was asked at the beginning of the year, perhaps by Joanne, Anthony, where I thought contact lens market growth would be. If you look at 2025, it was about 4% for the market. I had predicted that we'd see an improvement in 2026 at perhaps closer to approximately 4.5% market growth. I think based on where we sit today, it's probably closer to 4.5% than 4% or as we have -- I guess, another six months to go. But that's where I think we're probably right. So a bit of strengthening in the growth in the market. For us, when you look at our growth, very balanced between U.S. and international. We also saw nice growth in China at 3% in a tougher market with a tougher dynamic right now. We saw Canada up 11%, Europe up 11%, LatAm up 7%. So very balanced growth across the globe. And I think we're very well positioned. When you look at our new products, our Daily SiHy growing at 16%, but then more mature products like Biotrue up 13% and ULTRA up 8%. It shows that this growth is being sourced in our business from a very strong geographical mix as well as a product family mix. And so I feel very good about where we are. And then, of course, bridging to our Project Halo and Bioactive lens, hopefully launching towards the end of '28 or the back half of '28. I think this business is incredibly well positioned for strong growth for many, many years to come. Unknown Analyst: Great. And then as a quick follow-up, you have leverage down about a turn year-over-year. I guess could you give maybe updated thoughts on how you're thinking about capital allocation moving forward? Brenton L. Saunders: Yes. So really no change from what we've been saying on capital allocation. Clearly, delevering is our highest priority. We had said at Investor Day, we want to be 3.5x or better by the end of 2028. We're absolutely committed as I started the call to doing what we say we're going to do. And so that's a very high priority. I think second to that is reinvesting in the business. In terms of reinvestment, we tend to look for things that are immediately accretive and fairly neutral to the leverage ratios. And that's our criteria, and we look at a lot of things. And we're very active that way, but we are going to prioritize delevering as a goal. Sam, anything you'd add to that? Osama Eldessouky: No, you covered it pretty well, Brent. I think you will see that the progress with the full turn since Investor Day has really put us in a very good position as we think about the three-year targets here. So we're really moving very well with a very strong cash flow generation that's exceeding our expectations. Operator: The next question will be from Robbie Marcus from JPMorgan. Unknown Analyst: This is Alan on for Robbie. Just a quick one on the cash flow side. As you highlighted in the prepared remarks, this really was a really strong cash flow quarter. So when I think about the outlook for the back half of the year, what gives you confidence in your ability to continue driving that kind of free cash flow and reiterating your CapEx outlook? Brenton L. Saunders: Yes. So I'll ask Sam to provide more detail. But I would mention one point, which is the kind of the rhythm of our business or the seasonality of the business, the back half is always stronger than the front half. So that gives us -- with good cash generation in the first half, it gives us a lot of momentum to continue to improve that in the back half, but I'll turn it to Sam for more color. Osama Eldessouky: Sure. And we're very pleased with what we've seen and what we were able to do in the cash. And it's important to talk about Q2, but also I want to just step back, we really started the year in a very strong position with cash with Q1. So when you think about the second quarter, $161 million of cash, that's roughly about 87% growth in cash on a year-over-year basis for Q2 with a very nice conversion. As the point on your point in terms of the second half, Brent touched on the seasonality, which is very important, but there's also fundamental shifts that we've done in terms of how we manage our working capital. We've taken roughly about 12 days out of our working capital on a year-over-year basis. And that's not just a onetime. You've seen it sort of steady and carrying forward with us, and we're really getting the benefit of that as we go forward. So when you think about full year, we are -- I'll say we're moving towards our goal of the 45% cash flow to EBITDA -- adjusted EBITDA conversion. But what's more important is the three-year target that we put out, which we said 50-plus percent conversion by 2028. As we sit here today, I would say we're tracking ahead of that target. So it's really given us a lot of confidence not only in 2026, but also how we're thinking about the next three years and achieving the three-year targets being ahead of our expectation. Brenton L. Saunders: And I think it's important. We spend a lot of time as a management team talking about cash, and Sam is the most active of doing that at every meeting we have. But the fact that the margin expansion is translating into strengthening or improving the balance sheet is a real key criteria for us and something we hold ourselves and measure ourselves on weekly. Unknown Analyst: And then just a quick follow-up. You're looking to enter the MIGS market with ELIOS. This is a market that has become more competitive and a little bit more saturated. Your device is definitely differentiated against the other offerings on the market. But just curious your views on the competitiveness and how you're going to position that portfolio against the other MIGS competitors. Brenton L. Saunders: Yes. So maybe I'll ask both Luc and Yehia, who are both here to add their comments. But very quickly at a high level, I think it's highly differentiated, right? This is a best-in-class procedure. It's implant-free. The excimer is the perfect laser to provide these micro channels in the trabecular meshwork. And we're very excited to get this approval in the second half of the year and get it launched. But Luc, do you want to talk about positioning and then maybe Yehia, how it's differentiated from an efficacy and technology perspective. Luc Bonnefoy: In addition to what you just said, the beauty of the ELIOS is really that it can be done during the cataract surgery. So the patient is already there. 20% of the patients arriving for cataract surgery have glaucoma, probably moderated, and they can be a target for ELIOS. And the patient is there in OR, the ASC has paid the nurses, the custom pack is open and they just need five minutes additional operating time to treat the glaucoma and reduce the drops dependency. So it's not only efficient, it's better for the clinic, it's better for the patient, and it's also very good for the surgeon. So we have very good hope with this product. Brenton L. Saunders: Yes. The other thing I would say is before I ask Yehia to talk about the procedure itself. If you go to the surgical meetings or conventions, two things are happening that I haven't seen happen in my 13, 14 years of being in this field, which is they're talking about not just IOLs and cataract surgery, they're talking about interventional glaucoma and their responsibility in eliminating or reducing the burden of drops in glaucoma management and helping patients be drop-free or less dependent on drops where there's compliance and persistence issues that are significant. And they're talking about the health of the ocular surface prior to cataract surgery, which plays into our dry eye portfolio. And so there's a real synergy between those two things and cataract surgery and Bausch + Lomb is incredibly well positioned to help manage both of those with ELIOS and our dry eye portfolio. And so it's a really good strategic setup for us at the right time when there's real momentum around both of these issues during cataract surgery. Yehia, you want to talk about ELIOS? Yehia Hashad: No, I think that majority of the advantages have been mentioned, but I would like really to stress on additional two things. One, it's a very easy surgery to be done. And actually, the majority of the cataract surgeons that have never done even MIGS before, we actually, when we met with them and they had tested in a wet lab, they found it very easy to adopt. And this is one of the biggest area for us as well because anybody who's doing cataract surgery and would like to get into this field, this would be the right technology for them to use. The second part that I really also would like that we are actually through the excimer laser, which is very precise cutting these micro channels. we leave the trabecular meshwork in a very healthy way even after the procedure, which allows for the patients that if for any reason, they require additional surgery or anything like that, that still the majority of the trabecular meshwork remain intact. And the third part is obviously, as Brent mentioned, one of the main objectives of the mix is to get the patients off their pharmacologic treatment. And what we have seen in the clinical trial results over two years that over 80% of these patients have been drop free. So this is a great achievement with regard to this treatment as well. Operator: The next question will be from Larry Biegelsen from Wells Fargo. Lei Huang: It's Lei calling in for Larry. Congrats on a good quarter there. My question first is around your guidance. So you delivered 7% growth in the first half and you raised the outlook for the year. So that implies similar growth in the second half versus first half, but comps do get a bit tougher in the back half. So can you just talk about how you maintain that growth momentum against the tougher comps? And anything specific to call out in terms of Q3 versus Q4? Osama Eldessouky: Lei, it's Sam. So let me take this question. So you're absolutely right. We did look -- when you look at the first half about 7%, that suggests roughly the same level of growth in the second half. A couple of things to keep in mind here. The first one is the momentum that we've seen in the first half was really good and really strong. And that sort of led us to raise the guidance not only this quarter, but also last quarter. So we've been consistently doing that for the last two quarters here. And we're seeing that momentum continue with us in the second half. We know seasonality of the business plays a factor, and we know that the second half is stronger than the first half. So that plays a factor, but also the momentum that we're seeing around all four businesses and why we're able to deliver is very strong, and that gives us the confidence in the raised guidance and the sort of, I'll call it, carrying that momentum forward into the second half. In terms of -- and you see that also, by the way, translate through the P&L as well. When you think about just margins because margin is very important for us. We've been talking about it. Our first half, we were just roughly about, call it, 16.9% on EBITDA margin. When you think about the second half, we're looking to accelerate to get to the 19.1% EBITDA margin I referenced in my prepared remarks. That was just talking about the 21% EBITDA margin in the second half. So you're seeing not only top-line accelerating, but also you're seeing that momentum carry with the EBITDA margin as well. From a phasing perspective, we're -- I'll call it, in a very normal cadence of phasing. I use '25 probably as a good reference point right now. We saw that the top line was probably about a 25% achievement from our -- of our guidance. And for EBITDA, I would say it probably will be the same, maybe we'll go a little bit better. So I'll say between 25% and 26% achievement of the full year guidance that we have right now. Lei Huang: That's helpful. And then my other question is just around the strength of the surgical business in Q1 -- Q2, excuse me. On the Q1 call, you had talked about there were some weather and reimbursement changes that affected the performance. Was there anything to call out in Q2 as far as catch-up or reversal that you would highlight? Brenton L. Saunders: Not really. Q2 is a pretty typical quarter. We didn't see that clearly. The weather wasn't as big of a factor where surgery centers were closed in the U.S. in the quarter. There were also strikes in Europe, I think Spain. Osama Eldessouky: Spain continue, yes, in Q2 and will probably continue until the end of the year, but it's only major events that we have in Europe. Brenton L. Saunders: Yes. So I think fairly typical, no, nothing spectacular to call out in Q2. I think it was just great execution across the world, across the portfolio. Operator: The next question will be from Douglas Miehm from RBC. Douglas Miehm: First question just has to do with the commentary around Miebo. And I know that you've indicated that in 2026, this product would turn profitable. And I'm wondering if it has turned profitable or if you expect that to happen in the second half of the year? And then the second question I have is just around the dual action dry eye drug product that you will have data readout shortly. Can you speak to anything specifically that you're looking at in terms of those IIb results? And then in the event of a positive trial, when could we see that Phase III start for a registration study and move through? And when could we see that completed? I'll leave it there. Brenton L. Saunders: Great. Thanks, Doug. Look, Miebo, obviously, is a powerhouse that continues to exceed our expectations. And frankly, it's a combination of great execution by the team and just great medicine, right? Its safety profile is incredibly positive and its efficacy is very, very quick in a category where most of the other treatments take weeks or a month or longer to kick in. You're looking at really almost instantaneously treating the patient dissatisfaction. And so it's really important that you not just look at the execution, but actually the quality of the underlying medicine that Miebo is. And look, when you see 44% revenue growth on Miebo in the quarter, you see that this is a product just that has great momentum in a category that's still underpenetrated from a prescription therapy perspective and lots of room for growth. I would also say when you look at Miebo, we continue to improve coverage, Medicare coverage just increased from 71% to 88% as we picked up Humana Medicare. And so a lot of growth still to drive Miebo with. With respect to dual action, maybe I'll turn it over to Yehia to talk about the Phase II, and we still expect a data readout in this half of the year. Yehia Hashad: Yes. So thanks, Ben. So I guess, as mentioned, we are on track to deliver the top line in the second half of the year. I think your second part of the question was related to what we are expecting to see in terms of the study. This is a Phase II study, and this is the first study that we are testing the combination therapy. So we usually look to the overall efficacy and the overall safety of the combination therapy. But we have added additional endpoints where we can look to what's called contribution of elements, something that regulators usually look for any combination treatment, which means that we need to demonstrate some superiority versus each individual components. And this is also planned within the study design. I think --again, as mentioned, I think the study completed recruitment, and we are actually just in the terms of cleaning the data and so forth. So we should be expecting to end of quarter 3, the top lines. Brenton L. Saunders: And the Phase III would start depending on the result. Yehia Hashad: Third part of the question about the Phase III, obviously, depending on what you will see in this one, but we are planning to start the Phase III provided that the results support that in the coming year, '27. Operator: And the final question for today will be coming from Tom Stephan from Stifel. Thomas Stephan: I'll just keep it to one in the interest of time. But Brent, can you maybe talk a little bit more about the update on enVista Beyond from the press release? What's kind of the likely path forward here for the product? I guess it sounds like a 2027 launch is still the base case expectation. But maybe if you can discuss those results a bit further and kind of where we go from here? Brenton L. Saunders: Yes. So thanks, Tom. Yes, the -- we still are anticipating a launch next year. But since Yehia is here and he's the expert, I'll let him talk a little bit more about Beyond. Yehia Hashad: Yes. So Tom, thank you for the question. So we currently actually just received the first set of data, and we're still completing our full analysis of the data set. And we shall share more additional information once the review would have been completed. However, having said that, it's important to realize that we remain confident in the strength of the overall data that we have seen so far, which demonstrated a clinically meaningful benefit for all patients that have been implanted. And as Brent mentioned, we are still on track for the submission by the end of this year and also the approval by next year -- end of next year. So it's a one-year review period. So again, as mentioned, I think the overall data set is still not complete even, and we are -- we just received the first wave, and this is based on the first wave of what we have seen so far. Brenton L. Saunders: But we are excited to get this product on the market. I think it will be a very strong addition to our premium portfolio. And if you look at where the EDOFs sit in the treatment paradigm, it's an important product for us, and we're excited to get it out. Thomas Stephan: Got it. Thanks, guys. Brenton L. Saunders: Great. So operator, I'll just conclude by thanking everyone for joining us on the call. Hopefully, as you look at the results we delivered this quarter, and we continue to focus on delivering on our three-year commitments. This was another strong proof point that we are going to do what we say we do and deliver on our commitments to meet or exceed those targets. Our business has great momentum. Our people are committed and our product portfolio continues to expand. So our future is bright, and we look forward to continuing to keep you updated and delivering strong quarter after quarter. Thank you for joining us. Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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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 8% constant currency revenue growth driven by broad-based performance across Pharmaceuticals, Surgical, and Vision Care segments. Delivered significant margin expansion with adjusted EBITDA growing at 28%, nearly 3x the rate of revenue, reflecting structural improvements in the P&L. Successfully executed a U.S. Surgical field force rebuild, resulting in 16% constant currency growth and a meaningful recovery beyond pre-recall levels. Accelerated the mix shift toward premium Intraocular Lenses (IOLs), which now represent 13% of surgical revenue, enhancing both top-line growth and margin profile. Maintained strong momentum in the dry eye franchise with Miebo and Xiidra delivering 27% combined revenue growth in the first half of 2026. Optimized the cost structure through structural changes implemented in 2025, contributing 250 basis points to year-to-date adjusted EBITDA margin improvement. Balanced profitability with innovation by increasing R&D investment to support a diversified pipeline spanning dry eye, surgical, and AI-powered digital health. Raised full-year 2026 revenue and adjusted EBITDA guidance based on strong underlying business fundamentals and healthy eye care market trends. Anticipates adjusted EBITDA margins to accelerate to approximately 21% in the second half of 2026, supported by typical business seasonality. Expects Miebo to become the branded industry leader in dry eye disease treatment, supported by expanded Medicare coverage reaching 88%. Targets a net leverage ratio of 3.5x or better by the end of 2028, prioritizing debt reduction while seeking accretive, leverage-neutral reinvestment opportunities. Projects a sustained cadence of pipeline milestones, including the expected FDA approval of the ELIOS MIGS laser and clinical readouts for dry eye candidates in late 2026. Reported a full turn reduction in net leverage since the November Investor Day, reaching approximately 4.7x at the end of Q2. Noted that consumer eye vitamin performance (PreserVision) remains resilient but sensitive to macroeconomic factors like gasoline price fluctuations. Highlighted the strategic launch of Orphia, an AI-powered digital health platform, to reduce operational burdens for eye care providers. Confirmed that the Surgical segment has fully moved past recall-related headwinds, with surgeon confidence restored in the enVista platform. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed high confidence in meeting or exceeding targets, citing that improvements in SG&A and product mix are structural and permanent. Emphasized that the business is generating cash at a faster pace than anticipated, with year-to-date cash conversion at 46%. Management views the cataract market as shifting toward premium procedures, where their Envy and Aspire platforms are gaining share. Asserted a leadership position in dry eye, noting that Miebo's quick efficacy profile differentiates it from competitors that take weeks to show results. The device is positioned as a highly differentiated, implant-free procedure that can be easily integrated into standard cataract surgery. Clinical data showed over 80% of patients remained drop-free over two years, addressing significant compliance issues in glaucoma management. Management remains on track for an FDA submission by year-end 2026 with an anticipated launch in 2027. Initial data analysis shows clinically meaningful benefits for patients, though full review of the data set is still ongoing.

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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Interested in Bausch + Lomb Corporation? Here are five stocks we like better. Bausch + Lomb reported strong second-quarter results, with revenue up 8% year over year on a constant-currency basis to $1.394 billion and adjusted EBITDA up 28% to $246 million. Margin expansion and improved cash generation were supported by favorable product mix, productivity initiatives and lower fixed-cost intensity. The company raised its 2026 outlook, increasing revenue guidance to $5.440 billion–$5.540 billion and adjusted EBITDA guidance to $1.025 billion–$1.075 billion. Deleveraging remains the top capital-allocation priority, with management targeting net leverage of 3.5 times or better by the end of 2028. Growth was broad-based: pharmaceutical revenue rose 14%, surgical revenue increased 16% and vision care grew 4%. MIEBO sales jumped 44%, while surgical implantables grew 64%; the company also expects key regulatory milestones for ELIOS and enVista Beyond. Bausch Health: A Buyout Bid Could Be the Ticket to Unlock Value Bausch + Lomb (NYSE:BLCO) reported second-quarter 2026 revenue growth across its vision care, surgical and pharmaceutical businesses, while raising its full-year revenue and adjusted EBITDA outlook. The company said improved product mix, productivity initiatives and lower fixed-cost intensity supported margin expansion and stronger cash generation. Total second-quarter revenue was $1.394 billion, up 8% on a constant-currency basis. Foreign exchange provided an approximately $12 million revenue tailwind. Adjusted EBITDA increased 28% year over year on a reported basis to $246 million, while adjusted EBITDA margin rose 260 basis points to 17.6%. → This Tiny AI Supplier Could Be More Important Than the Chipmakers It’s Time To Nibble On These Two Recent IPOs “Revenue growth and margin expansion are now also translating into stronger cash generation and deleveraging to strengthen the balance sheet,” Chief Financial Officer Sam Eldessouky said on the company’s earnings call. Adjusted cash flow from operations totaled $161 million in the quarter, compared with $45 million in the first quarter, according to Chairman and Chief Executive Officer Brent Saunders. Adjusted free cash flow was $90 million after $71 million in capital expenditures. Net leverage stood at approximately 4.7 times at the end of the quarter, which the company said was a full-turn reduction from its Investor Day level. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Adjusted gross margin was 62.2%, up 160 basis points year over year, supported by a higher mix of premium products in pharmaceuticals and surgical, as well as productivity efforts. The company invested $114 million in adjusted research and development, an increase of 19% from the prior-year period. Adjusted SG&A margin improved by approximately 130 basis points. Bausch + Lomb raised its 2026 revenue guidance by $20 million to a range of $5.440 billion to $5.540 billion. The outlook implies constant-currency growth of about 5.8% to 7.7%, 50 basis points above its prior outlook. The company cited a $25 million increase in its underlying business outlook, partly offset by a $5 million reduction in anticipated currency benefits. → Innovative ETF Strategies That Are Paying Off This Summer The company also increased adjusted EBITDA guidance by $15 million to $1.025 billion to $1.075 billion. At the midpoint, the guidance implies an adjusted EBITDA margin of approximately 19.1% and adjusted EBITDA growth of approximately 18% year over year. Bausch + Lomb maintained expectations for about $365 million in interest expense, a 19% adjusted tax rate and approximately $285 million in full-year capital expenditures. Saunders said deleveraging remains the company’s top capital-allocation priority, with a target of net leverage of 3.5 times or better by the end of 2028. The company said it would also evaluate investments that are immediately accretive and broadly neutral to leverage ratios. Pharmaceutical revenue was $354 million, up 14% from the prior year on a constant-currency basis. U.S. pharmaceuticals grew 17%, led by the dry-eye franchise, which increased 23%. MIEBO revenue rose 44% to $91 million, while XIIDRA revenue increased 6% to $87 million. Saunders said MIEBO’s Medicare coverage increased to 88% from 71% after the addition of Humana Medicare coverage. He also said the company expects MIEBO to become the branded industry leader in dry-eye treatment, though the company did not provide a specific timeline. International pharmaceuticals grew 8%. Bausch + Lomb expects a top-line data readout for its dual-action dry-eye candidate near the end of the third quarter. Yehia Hashad, executive vice president of research and development and chief medical officer, said the Phase 2 study is evaluating efficacy and safety of the combination therapy, including whether it demonstrates superiority over each individual component. If results support advancement, the company plans to begin Phase 3 studies in 2027. Vision care revenue was $784 million, up 4%. Consumer revenue increased 3%, while contact lens revenue grew 5%. The consumer dry-eye portfolio generated $123 million in revenue, up 5%, including 12% growth for Blink and 3% growth for Artelac. LUMIFY revenue was $63 million, up 2%, while PreserVision and Ocuvite eye vitamins generated $104 million, up 1% on a reported basis. The company said consumer demand strengthened during the quarter and continued into July. Saunders noted that retail consumption trends have tracked closely with gasoline prices, with some consumers trading down to smaller pack sizes or showing greater promotional sensitivity during periods of pressure. Contact lens growth was broad-based across product lines and geographies. Daily silicone hydrogel products grew 16%, Biotrue rose 13% and ULTRA increased 9%. U.S. contact lens revenue grew 5%, while international revenue increased 6%, including 11% growth in EMEA and Canada, 7% in Latin America and 3% in Asia-Pacific. Surgical revenue was $256 million, up 16% year over year and 17% compared with the second quarter of 2024, which the company characterized as its pre-recall baseline. Implantables grew 64% year over year and 37% versus the 2024 comparison period. Premium intraocular lens revenue increased 175%. Luc Bonnefoy, president of surgical, said premium eyewear represented 13% of surgical revenue in the second quarter, compared with 9% in 2025, 7% in 2024 and 6% in 2023. He attributed the mix shift to the company’s premium IOL portfolio and field-force execution, as well as manufacturing and supply-network initiatives. The company filed an FDA submission during the quarter for ELIOS, its implant-free minimally invasive glaucoma surgery excimer laser. Management said it expects approval in the second half of 2026. Hashad said clinical-trial results over two years showed more than 80% of patients treated with ELIOS were drop-free. Bausch + Lomb also said it remains on track to submit enVista Beyond by the end of 2026 and expects approval by the end of 2027. Hashad said the company had received an initial set of data and was continuing its analysis, but remained confident in the overall data seen so far. Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. 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 + Lomb Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Bausch + Lomb (BLCO) came out with quarterly earnings of $0.16 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.08, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Bausch + Lomb, which belongs to the Zacks Medical Services industry, posted revenues of $1.39 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.92%. This compares to year-ago revenues of $1.28 billion. The company has topped consensus revenue estimates three 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 + Lomb shares have lost about 2.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Bausch + Lomb 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 + Lomb was mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.21 on $1.37 billion in revenues for the coming quarter and $0.80 on $5.47 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 Services is currently in the top 32% 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. Another stock from the same industry, Pediatrix Medical Group (MD), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This physician group is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +7.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Pediatrix Medical Group's revenues are expected to be $477.34 million, up 1.8% 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 + Lomb Corporation (BLCO) : Free Stock Analysis Report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research