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BHC Stock Up on Q3 Earnings Beat, Salix and Solta Drive Sales
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Key Takeaways
Bausch Health's Q3 EPS of $1.16 and revenues of $2.68B beat consensus estimates.
Salix revenues jumped 12%, led by 16% growth in Xifaxan sales on solid demand.
Company raised 2025 revenue outlook, now guiding up to $10.050-$10.250B for the year.
Bausch Health Companies Inc. (BHC - Free Report) reported better-than-expected results for the third quarter of 2025. Shares gained 7.3% in after-market hours trading in response to the quarterly performance.
Adjusted earnings per share of $1.16 comfortably beat the Zacks Consensus Estimate of $1.07 and were up from $1.12 recorded in the year-ago quarter.
Total revenues of $2.68 billion were up 7% year over year. The top line also beat the Zacks Consensus Estimate of $2.6 billion.
Excluding the impact of foreign exchange of $29 million, acquisitions of $3 million, and divestitures and discontinuations (which negatively impacted the prior year by $3 million), revenues increased 5% organically year over year.
BHC’s shares have lost 26.8% year to date against the industry’s growth of 6.2%.
Image Source: Zacks Investment Research
BHC's Q3 in Detail
The company reports revenues under two segments — Bausch Health and Bausch + Lomb.
Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Salix revenues totaled $716 million, up 12% year over year. Within this segment, Xifaxan revenues were up 16%, led by strong growth in underlying demand. However, Relistor (-8%) and Trulance (-6%) were impacted by unfavorable net pricing. Relistor revenues were also affected by lower volumes.
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 both the Zacks Consensus Estimate and our model estimate of $650 million.
International revenues totaled $286 million, down 2% year over year, due to a 17% decline in Latin American and an 8% fall in Canadian markets. Continued softness in Mexican markets impacted sales from Latin America. Nonetheless, the reported figure beat both the Zacks Consensus Estimate of $285 million and our model estimate of $278 million. Excluding the impact of foreign exchange of $9 million and divestitures and discontinuations of $1 million, revenues decreased 4%.
Solta Medical reported revenues of $140 million, up 25% year over year, driven by growth in each geography. The figure beat the Zacks Consensus Estimate of $129 million and our model estimate of $137 million. Revenues were up 24% organically, primarily driven by strong growth in Asia Pacific markets.
Diversified Product revenues amounted to $258 million, down 4% from the year-ago level. Within this segment, neurology sales decreased 14% year over year due to fluctuations in demand for Cardizem. Sales from the Dentistry business were flat year over year. The Generics business was also flat. The Dermatology business gained 21%, driven by strong Cabtreo and Jublia growth.
Diversified Product revenues beat the Zacks Consensus Estimate of $231 million and our model estimate of $217 million.
Revenues from Bausch + Lomb totaled $1.28 billion, up 7% year over year, driven by single-digit growth across each business — vision care, surgical and pharmaceuticals. However, the figure missed both the Zacks Consensus Estimate and our model estimate of $1.3 billion.
Excluding the impact of foreign exchange of $19 million, acquisitions of $3 million and divestitures and discontinuations of $4 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.
Pipeline Updates
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. The company is on track to report top-line phase III results by early 2026.
BHC 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 FDA granted Larsucosterol (Epigenetic modulator) Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis (AH). The registrational phase III program is in development to evaluate the safety and efficacy in patients with severe AH.
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. The treatment also received approval from the Chinese National Medical Products in August 2025.
BHC Raises Lower End of 2025 Guidance
BHC now expects revenues to be in the range of $10.050-$10.250 billion (previous guidance: $10-$10.250 billion). Excluding Bausch + Lomb, revenues are now projected to be in the range of $5.000-$5.100 billion (previous guidance: $4.95-$5.10 billion). Bausch + Lomb revenues are still expected to be in the range of $5.05-$5.150 billion.
Our Take on BHC’s Q3 Performance
Bausch’s better-than-expected third-quarter results were impressive, driven by Salix and Solta businesses. Xifaxan continues to drive growth.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch recently acquired DURECT Corporation, which strengthens its growth platform in R&D, complementing its existing hepatology pipeline and broadening the reach of its diverse portfolio across therapeutic areas and geographies. The acquisition includes larsucosterol, a novel therapeutic molecule that can harness the power of epigenetic modulation.
However, the colossal debt continues to weigh on the stock. As of Sept. 30, 2025, the company’s long-term debt obligations amounted to $21 billion and cash balance totaled $1.3 billion.
Alkermes’ earnings per share (EPS) estimates for 2025 have inched up from $1.84 to $1.85, while those for 2026 have risen from $1.68 to $1.70 in the past 30 days. The stock has gained nearly 9% year to date.
Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark in the remaining occasion, delivering an average surprise of 4.58%.
In the past 30 days, estimates for Amicus Therapeutics’ 2025 EPS have remained constant at 31 cents. Earnings per share estimates for 2026 have increased from 69 cents to 70 cents during the same period. The stock has surged 33% over the past six months.
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BHC Stock Up on Q3 Earnings Beat, Salix and Solta Drive Sales
Key Takeaways
Bausch Health Companies Inc. (BHC - Free Report) reported better-than-expected results for the third quarter of 2025. Shares gained 7.3% in after-market hours trading in response to the quarterly performance.
Adjusted earnings per share of $1.16 comfortably beat the Zacks Consensus Estimate of $1.07 and were up from $1.12 recorded in the year-ago quarter.
Total revenues of $2.68 billion were up 7% year over year. The top line also beat the Zacks Consensus Estimate of $2.6 billion.
Excluding the impact of foreign exchange of $29 million, acquisitions of $3 million, and divestitures and discontinuations (which negatively impacted the prior year by $3 million), revenues increased 5% organically year over year.
BHC’s shares have lost 26.8% year to date against the industry’s growth of 6.2%.
Image Source: Zacks Investment Research
BHC's Q3 in Detail
The company reports revenues under two segments — Bausch Health and Bausch + Lomb.
Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Salix revenues totaled $716 million, up 12% year over year. Within this segment, Xifaxan revenues were up 16%, led by strong growth in underlying demand. However, Relistor (-8%) and Trulance (-6%) were impacted by unfavorable net pricing. Relistor revenues were also affected by lower volumes.
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 both the Zacks Consensus Estimate and our model estimate of $650 million.
International revenues totaled $286 million, down 2% year over year, due to a 17% decline in Latin American and an 8% fall in Canadian markets. Continued softness in Mexican markets impacted sales from Latin America. Nonetheless, the reported figure beat both the Zacks Consensus Estimate of $285 million and our model estimate of $278 million. Excluding the impact of foreign exchange of $9 million and divestitures and discontinuations of $1 million, revenues decreased 4%.
Solta Medical reported revenues of $140 million, up 25% year over year, driven by growth in each geography. The figure beat the Zacks Consensus Estimate of $129 million and our model estimate of $137 million. Revenues were up 24% organically, primarily driven by strong growth in Asia Pacific markets.
Diversified Product revenues amounted to $258 million, down 4% from the year-ago level. Within this segment, neurology sales decreased 14% year over year due to fluctuations in demand for Cardizem. Sales from the Dentistry business were flat year over year. The Generics business was also flat. The Dermatology business gained 21%, driven by strong Cabtreo and Jublia growth.
Diversified Product revenues beat the Zacks Consensus Estimate of $231 million and our model estimate of $217 million.
Revenues from Bausch + Lomb totaled $1.28 billion, up 7% year over year, driven by single-digit growth across each business — vision care, surgical and pharmaceuticals. However, the figure missed both the Zacks Consensus Estimate and our model estimate of $1.3 billion.
Excluding the impact of foreign exchange of $19 million, acquisitions of $3 million and divestitures and discontinuations of $4 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.
Pipeline Updates
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. The company is on track to report top-line phase III results by early 2026.
BHC 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 FDA granted Larsucosterol (Epigenetic modulator) Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis (AH). The registrational phase III program is in development to evaluate the safety and efficacy in patients with severe AH.
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. The treatment also received approval from the Chinese National Medical Products in August 2025.
BHC Raises Lower End of 2025 Guidance
BHC now expects revenues to be in the range of $10.050-$10.250 billion (previous guidance: $10-$10.250 billion). Excluding Bausch + Lomb, revenues are now projected to be in the range of $5.000-$5.100 billion (previous guidance: $4.95-$5.10 billion). Bausch + Lomb revenues are still expected to be in the range of $5.05-$5.150 billion.
Our Take on BHC’s Q3 Performance
Bausch’s better-than-expected third-quarter results were impressive, driven by Salix and Solta businesses. Xifaxan continues to drive growth.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote
Bausch recently acquired DURECT Corporation, which strengthens its growth platform in R&D, complementing its existing hepatology pipeline and broadening the reach of its diverse portfolio across therapeutic areas and geographies. The acquisition includes larsucosterol, a novel therapeutic molecule that can harness the power of epigenetic modulation.
However, the colossal debt continues to weigh on the stock. As of Sept. 30, 2025, the company’s long-term debt obligations amounted to $21 billion and cash balance totaled $1.3 billion.
BHC's Zacks Rank and Other Stocks to Consider
Bausch currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the pharma/biotech sector are Alkermes (ALKS - Free Report) and Amicus Therapeutics (FOLD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkermes’ earnings per share (EPS) estimates for 2025 have inched up from $1.84 to $1.85, while those for 2026 have risen from $1.68 to $1.70 in the past 30 days. The stock has gained nearly 9% year to date.
Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark in the remaining occasion, delivering an average surprise of 4.58%.
In the past 30 days, estimates for Amicus Therapeutics’ 2025 EPS have remained constant at 31 cents. Earnings per share estimates for 2026 have increased from 69 cents to 70 cents during the same period. The stock has surged 33% over the past six months.