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

Bausch Health Cos (NYSE:BHC) announced its quarterly earnings results on Wednesday. The company reported $1.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.25 by $0.52, reports. The firm had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.72 billion. Bausch Health Cos had a negative return on equity of 369.48% and a negative net margin of 7.57%.

Here are the key takeaways from Bausch Health Cos’ conference call:

• Strong third-quarter performance: Bausch Health, excluding Bausch + Lomb, reported 12% revenue growth to $1.566 billion and record quarterly Adjusted EBITDA of $1.022 billion, extending its streak to 14 consecutive quarters of year-over-year revenue and EBITDA growth.
• Robust cash generation enabled the company to reduce net debt by $521 million in the quarter and more than $1 billion year to date. Management also announced plans for up to $100 million of open-market debt repurchases and a $50 million share repurchase program.
• Management raised full-year 2026 guidance for the second consecutive quarter, with revenue now expected at $5.0 billion-$5.625 billion, Adjusted EBITDA at $3.225 billion-$3.275 billion, and adjusted cash flow from operations at $1.6 billion-$1.675 billion.
• Fourth-quarter results face significant XIFAXAN-related headwinds as the company adjusts gross-to-net accruals ahead of the January 2027 Medicare price change and assumes channel-inventory normalization. Management indicated the combined impact could reduce quarterly revenue growth by at least 1,100 basis points, with an estimated $400 million-$500 million year-over-year impact in 2027.
• Solta’s year-to-date organic revenue growth was 8%, but third-quarter organic revenue declined 4% amid softer Chinese consumer spending, local competition, and a relatively saturated Korean market. Management expects reported and organic growth to improve in the fourth quarter, supported by the China distributor integration and stronger consumables demand.

Bausch Health Cos Stock Performance

Shares of BHC traded down $0.20 during midday trading on Friday, hitting $8.71. The company had a trading volume of 1,671,798 shares, compared to its average volume of 2,638,159. The company’s 50-day simple moving average is $6.21 and its 200-day simple moving average is $5.72. Bausch Health Cos has a 1 year low of $4.33 and a 1 year high of $9.04. The firm has a market capitalization of $3.26 billion, a P/E ratio of -3.80 and a beta of 0.37.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Wall Street Zen upgraded shares of Bausch Health Cos from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 1st. Royal Bank Of Canada upped their target price on shares of Bausch Health Cos from $9.00 to $10.00 and gave the stock a “sector perform” rating in a research note on Thursday. Zacks Research upgraded Bausch Health Cos from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Bausch Health Cos in a research report on Thursday. Finally, Jefferies Financial Group raised their price target on Bausch Health Cos from $6.50 to $8.00 and gave the company a “hold” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $8.25.

More Bausch Health Cos News

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

• Positive Sentiment: Raised 2026 guidance: Bausch Health now expects fiscal 2026 revenue of $11.0 billion to $11.2 billion, above the roughly $10.9 billion consensus estimate. The company also raised its full-year adjusted EBITDA and adjusted operating cash-flow outlook. This supports expectations for continued operating momentum.
• Positive Sentiment: Q3 earnings beat expectations: Revenue reached approximately $2.94 billion, up 10% year over year and ahead of estimates near $2.76 billion. Adjusted earnings per share rose 53% to $1.77, beating consensus estimates ranging from $1.08 to $1.25. Adjusted EBITDA increased 32% to $1.305 billion, while operating cash flow was $581 million. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: Salix growth remains a key catalyst: Results were helped by growth in the Salix business, particularly Xifaxan, along with improved profitability. The company reported its 14th consecutive quarter of year-over-year revenue and adjusted EBITDA growth excluding Bausch + Lomb. BHC Q3 Earnings Beat on Salix Growth
• Positive Sentiment: Debt and share repurchase actions: The company plans to redeem approximately $643 million of 8.5% senior notes due 2027 using cash on hand, potentially lowering interest expense and refinancing risk. It also authorized a $50 million share repurchase program, primarily to offset employee-related dilution. Bausch Health Announces Full Redemption of Senior Notes
• Neutral Sentiment: Analyst view is cautious: Royal Bank of Canada raised its price target from $9 to $10 but maintained a “sector perform” rating, suggesting limited conviction despite the improved outlook. Royal Bank of Canada Bausch Health Rating
• Neutral Sentiment: Call-option activity rose about 120% above normal levels, indicating increased speculative interest but not confirming a fundamental change in valuation.

Insider Activity at Bausch Health Cos

In other news, insider Aimee Lenar sold 36,827 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $7.03, for a total value of $258,893.81. Following the transaction, the insider owned 334,853 shares of the company’s stock, valued at approximately $2,354,016.59. The trade was a 9.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is owned by company insiders.

About Bausch Health Cos

Bausch Health Companies Inc (NYSE:BHC) is a multinational specialty pharmaceutical company focused on developing, manufacturing and commercializing branded, generic and over-the-counter medicines. Its portfolio serves several therapeutic areas, including gastroenterology, dermatology, neurology, ophthalmology, hospital products and other specialty-care markets.

The company markets products through businesses such as Salix Pharmaceuticals, Ortho Dermatologics, Solta Medical and its international pharmaceutical operations.