It has been about a month since the last earnings report for Bausch Health (BHC Quick QuoteBHC - Free Report) . Shares have added about 21.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Bausch due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Bausch Health’s Q2 Earnings Miss, Revenues Beat

Adjusted earnings per share of 90 cents missed the Zacks Consensus Estimate of 97 cents. Earnings were up from 89 cents in the year-ago quarter.

Total revenues of $2.53 billion were up 5% year over year. The top line beat the Zacks Consensus Estimate of $2.5 billion.

Excluding the impact of foreign exchange of $21 million, acquisitions of $6 million, and divestitures and discontinuations (which negatively impacted the prior year by $2 million), revenues increased 4% organically.

Q2 in Detail

The company reports revenues under five segments — Salix, International, Diversified Products, SoltaMedical and Bausch + Lomb.

Salix revenues totaled $627 million, up 12% year over year. Within this segment, Xifaxanrevenues were up 10%, led by strong growth in underlying demand. Trulancerevenues almost doubled while Relistorrevenues were up 14%, driven by a more favorable net pricing compared to the year-ago quarter.

Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.

Salix revenues comfortably beat the Zacks Consensus Estimate of $589 million and our model estimate of $585.3 million.

International revenues totaled $278 million, up 1% year over year, driven by growth in EMEA region. The figure missed both the Zacks Consensus Estimate and our model estimate of $280 million. Revenues also increased 1% organically (excluding the impact of foreign exchange and divestitures and discontinuations), led by growth in Canada and EMEA.

Solta Medical reported revenues of $128 million, up 25% year over year, driven by volume expansion globally. The figure beat the Zacks Consensus Estimate of $123 million but missed our model estimate of $130 million. Revenues were up 26% organically, primarily driven by South Korea.

Diversified Product revenues amounted to $219 million, down 13% from the year-ago level. Within this segment, neurology sales decreased 8% year over year due to fluctuations in demand for Cardizem. Sales from the Dentistry business were flat year over year. The Generics business was down 13%. The Dermatology business was down 26% due to lower net realized pricing and expected lower demand for mature non-promoted brands.

Diversified Product revenues missed the Zacks Consensus Estimate of $225 million but beat our model estimate of $216.6 million.

Revenues from Bausch + Lomb totaled $1.3 billion, up 5% year over year. The figure beat the Zacks Consensus Estimate of $1.2 billion and our model estimate of $1.25 billion. Bausch + Lomb’s revenues increased 3% organically on a year-over-year basis, driven by growth in the vision care segment.

Pipeline Development

Bausch Health is conducting an internal review on pipeline candidate amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis.

The company submitted its application seeking approval of Cabtreo(fixed-dose, triple-combination topical treatment for acne vulgaris) to the EMA. The treatment was approved in Canada in the third quarter and launched in October 2024.

The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase. Top-line results are expected by early 2026.

The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. BHC is awaiting the European regulatory response to the submission.

Bausch Health launched FraxelFTX, a fractional laser system targeting treatment in skin rejuvenation, addressing common skin concerns such as sun damage, wrinkles, acne scars, and pigmentation irregularities in the United States in April 2025.

Updates 2025 Guidance

Bausch Health now expects revenues to be in the range of $10-$10.250 billion (previous guidance: $9.950-$10.2 billion). Excluding Bausch + Lomb, revenues are still projected to be in the $4.95-$5.10 billion band. Bausch + Lomb revenues are expected to be in the range of $5.05-$5.150 billion (previous guidance: $5-$5.1 billion).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

Currently, Bausch has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Bausch has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.