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BHC Q1 Earnings Miss Estimates, Sales Grow on Salix & Solta Strength
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Key Takeaways
Bausch Health reported Q1 EPS of 78 cents, missing estimates, while revenues rose 12% y/y to $2.5B.
BHC's growth was driven by Salix, Solta and International units, with Xifaxan sales up 21%.
BHC raised the 2026 revenue outlook and advanced pipeline programs, including larsucosterol phase III.
Bausch Health Companies Inc. (BHC - Free Report) reported mixed results for the first quarter of 2026.
Adjusted earnings per share (EPS) of 78 cents missed the Zacks Consensus Estimate of 81 cents but were up from 59 cents recorded in the year-ago quarter.
Total revenues of $2.5 billion were up 12% year over year. The top line beat the Zacks Consensus Estimate of $2.4 billion.
Excluding the impact of a foreign exchange of $71 million, acquisitions of $33 million and divestitures and discontinuations of $4 million, revenues increased 7% organically year over year.
BHC’s shares have lost 19.5% year to date compared to the industry’s decline of 2.9%.
Image Source: Zacks Investment Research
BHC's Q1 in Detail
The company reports revenues under two segments: Bausch Health and Bausch + Lomb.
Bausch Health’s revenues came in at $1.3 billion, up 14% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Salix’s revenues totaled $639 million, up 18% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $559 million, up 21%, led by strong demand growth. Relistor’s revenues were $40 million. However, Trulance’s revenues of $31 million were down 2% year over year.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix’s revenues beat the Zacks Consensus Estimate of $575 million and our model estimate of $589 million.
International revenues totaled $285 million, up 9% year over year, led by 12% growth in EMEA markets. Latin America markets also put up a solid performance driven by commercial product growth, offset by lower volume. However, sales in Canada were down 4% year over year.
The reported figure beat the Zacks Consensus Estimate of $272 million and our model estimate of $268 million. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, revenues were relatively flat on an organic basis.
Solta Medical reported revenues of $171 million, up 51% year over year, driven by China and South Korea. The figure beat the Zacks Consensus Estimate of $122 million and our model estimate of $117 million. Results also benefited from Solta’s acquisition of Shibo's full service aesthetics distribution business in China.
Diversified Product’s revenues amounted to $185 million, down 10% from the year-ago level. Within this segment, neuroscience sales decreased 4% year over year due to lower volume. The Dermatology business was down 28% due to partial channel destocking despite solid Cabtreo and Jublia demand. Sales from the Dentistry business were $21 million. The Generics business generated sales of $21 million.
Diversified Product’s revenues missed the Zacks Consensus Estimate of $219 million and our model estimate of $228 million.
Revenues from Bausch + Lomb totaled $1.24 billion, up 9% year over year, driven by growth across each business — vision care, surgical and pharmaceuticals. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.22 billion.
Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.
BHC’s Pipeline Development
The registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026.
The FDA earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH.
An internal review on amiselimod, an S1P modulator, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, the Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025. It was launched in Canada in February 2026.
BHC Updates 2026 Guidance
BHC now expects 2026 revenues to be in the range of $10.670-$10.920 billion (previous guidance: $10.625-$10.875 billion). The Zacks Consensus Estimate for the same is pegged at $10.68 billion.
Excluding Bausch + Lomb, revenues are still projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are now expected to be in the range of $5.420-$5.520 billion (previous guidance: $5.375-$5.475 billion).
Our Take on BHC’s Q1 Performance
While earnings missed estimates in the first quarter, revenue growth was impressive, driven by Salix, Solta and International businesses. Xifaxan continues to drive growth.BHC recently acquired Shibo’s full-service aesthetics distribution business in China.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
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.
Nonetheless, the colossal debt continues to weigh on the stock. As of March 31, 2026, the company’s total debt obligations amounted to $20.7 billion, and its cash balance totaled $1.3 billion.
Over the past 60 days, estimates for Agenus’ 2026 earnings per share have risen from 54 cents to $1.30, while loss-per-share estimates for 2027 have narrowed from $1.91 to $1.52. AGEN shares have gained 22.3% year to date.
Agenus’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 31.42%.
Over the past 90 days, Amarin's loss-per-share estimates for 2026 have narrowed from $7.32 to $6.36, and the same for 2027 have narrowed from $5.97 to $4.64.
Amarin's earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 51.29%.
Over the past 60 days, Castle Biosciences’ 2026 loss-per-share estimates have narrowed from $1.42 to $1.40. CSTL shares have rallied 67.3% over the past six months.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.
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BHC Q1 Earnings Miss Estimates, Sales Grow on Salix & Solta Strength
Key Takeaways
Bausch Health Companies Inc. (BHC - Free Report) reported mixed results for the first quarter of 2026.
Adjusted earnings per share (EPS) of 78 cents missed the Zacks Consensus Estimate of 81 cents but were up from 59 cents recorded in the year-ago quarter.
Total revenues of $2.5 billion were up 12% year over year. The top line beat the Zacks Consensus Estimate of $2.4 billion.
Excluding the impact of a foreign exchange of $71 million, acquisitions of $33 million and divestitures and discontinuations of $4 million, revenues increased 7% organically year over year.
BHC’s shares have lost 19.5% year to date compared to the industry’s decline of 2.9%.
Image Source: Zacks Investment Research
BHC's Q1 in Detail
The company reports revenues under two segments: Bausch Health and Bausch + Lomb.
Bausch Health’s revenues came in at $1.3 billion, up 14% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Salix’s revenues totaled $639 million, up 18% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $559 million, up 21%, led by strong demand growth. Relistor’s revenues were $40 million. However, Trulance’s revenues of $31 million were down 2% year over year.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix’s revenues beat the Zacks Consensus Estimate of $575 million and our model estimate of $589 million.
International revenues totaled $285 million, up 9% year over year, led by 12% growth in EMEA markets. Latin America markets also put up a solid performance driven by commercial product growth, offset by lower volume. However, sales in Canada were down 4% year over year.
The reported figure beat the Zacks Consensus Estimate of $272 million and our model estimate of $268 million. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, revenues were relatively flat on an organic basis.
Solta Medical reported revenues of $171 million, up 51% year over year, driven by China and South Korea. The figure beat the Zacks Consensus Estimate of $122 million and our model estimate of $117 million. Results also benefited from Solta’s acquisition of Shibo's full service aesthetics distribution business in China.
Diversified Product’s revenues amounted to $185 million, down 10% from the year-ago level. Within this segment, neuroscience sales decreased 4% year over year due to lower volume. The Dermatology business was down 28% due to partial channel destocking despite solid Cabtreo and Jublia demand. Sales from the Dentistry business were $21 million. The Generics business generated sales of $21 million.
Diversified Product’s revenues missed the Zacks Consensus Estimate of $219 million and our model estimate of $228 million.
Revenues from Bausch + Lomb totaled $1.24 billion, up 9% year over year, driven by growth across each business — vision care, surgical and pharmaceuticals. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.22 billion.
Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.
BHC’s Pipeline Development
The registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026.
The FDA earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH.
An internal review on amiselimod, an S1P modulator, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, the Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025. It was launched in Canada in February 2026.
BHC Updates 2026 Guidance
BHC now expects 2026 revenues to be in the range of $10.670-$10.920 billion (previous guidance: $10.625-$10.875 billion). The Zacks Consensus Estimate for the same is pegged at $10.68 billion.
Excluding Bausch + Lomb, revenues are still projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are now expected to be in the range of $5.420-$5.520 billion (previous guidance: $5.375-$5.475 billion).
Our Take on BHC’s Q1 Performance
While earnings missed estimates in the first quarter, revenue growth was impressive, driven by Salix, Solta and International businesses. Xifaxan continues to drive growth.BHC recently acquired Shibo’s full-service aesthetics distribution business in China.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote
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.
Nonetheless, the colossal debt continues to weigh on the stock. As of March 31, 2026, the company’s total debt obligations amounted to $20.7 billion, and its cash balance totaled $1.3 billion.
BHC’s Zacks Rank & Stocks to Consider
Bausch currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Agenus (AGEN - Free Report) , Amarin (AMRN - Free Report) and Castle Biosciences (CSTL - 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.
Over the past 60 days, estimates for Agenus’ 2026 earnings per share have risen from 54 cents to $1.30, while loss-per-share estimates for 2027 have narrowed from $1.91 to $1.52. AGEN shares have gained 22.3% year to date.
Agenus’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 31.42%.
Over the past 90 days, Amarin's loss-per-share estimates for 2026 have narrowed from $7.32 to $6.36, and the same for 2027 have narrowed from $5.97 to $4.64.
Amarin's earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 51.29%.
Over the past 60 days, Castle Biosciences’ 2026 loss-per-share estimates have narrowed from $1.42 to $1.40. CSTL shares have rallied 67.3% over the past six months.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.