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BHC Q3 Earnings Beat on Salix Growth, Stock Gains 9% as Outlook Rises
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Key Takeaways
Bausch Health's Q3 adjusted EPS surged 52.6% to $1.77, beating estimates on strong Salix performance.
Salix revenues rose 16% to $831 million, while organic revenue growth reached 8% company-wide.
Bausch Health raised 2026 revenue and EBITDA guidance and authorized a $50 million share repurchase program.
Bausch Health Companies (BHC - Free Report) reported third-quarter 2026 adjusted earnings of $1.77 per share, which increased 52.6% year over year. The figure surpassed the Zacks Consensus Estimate of $1.08, aided by strength in the Salix business.
Revenues rose 9.7% year over year to $2.94 billion and beat the Zacks Consensus Estimate of $2.75 billion. Organic revenues rose 8%, driven by Xifaxan-led Salix growth. The stock is up about 9% in the pre-market hours today following the better-than-expected third-quarter results.
The company reports revenues under two segments: Bausch Health and Bausch + Lomb.
Bausch Health’s revenues amounted to $1.57 billion, up 12% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Bausch Health's Salix Momentum
Salix revenues reached $831 million, up 16% year over year on a reported basis and 14% organically. Xifaxan was the primary growth driver, with sales advancing 16% in the quarter.
Shares of BHC have lost 0.5% year to date against the industry’s 10.2% growth.
Image Source: Zacks Investment Research
The segment exceeded the Zacks Consensus Estimate of $710.52 million and our model estimate of $761.4 million. Overall, Bausch Health's businesses excluding Bausch + Lomb generated $1.57 billion in revenues, up 12% from a year earlier.
BHC's International and Solta Results
International revenues rose 5% to $299 million, with organic growth of 4%, led by Canada. Favorable foreign exchange contributed $4 million. The figure beat the Zacks Consensus Estimate of $286.17 million and our model estimate of $263.8 million.
Solta Medical revenues grew 18% to $165 million, aided by the acquisition of the company's full-service distributor in China. The segment missed the Zacks Consensus Estimate of $169.11 million but exceeded our model estimate of $163.2 million.
Excluding acquisition and currency effects, Solta revenues declined 4% organically, as sales in the Asia-Pacific region decreased modestly.
Bausch Health's Diversified Segment Performance
Diversified segment revenues increased 5% to $271 million, with organic growth also at 5%. The figure surpassed the Zacks Consensus Estimate of $200.72 million and our model estimate of $179.6 million. Double-digit growth in Dermatology drove the organic increase.
Dermatology revenues climbed 16% to $86 million. Neuroscience revenues were unchanged at $146 million, while Generics rose 13% to $18 million. Dentistry sales declined 5% to $21 million.
BHC's Bausch + Lomb Performance
Bausch + Lomb revenues grew 7% to $1.375 billion, with organic revenues also up 7%. The figure was slightly below the Zacks Consensus Estimate of $1.38 billion and matched our model estimate.
Revenue gains were broad-based. Vision Care sales rose 5% to $774 million, Surgical revenues increased 9% to $234 million, and Pharmaceuticals revenues advanced 11% to $367 million.
Bausch Health's Q3 Margin and Cost Trends
In the third quarter, BHC’s adjusted gross margin expanded to 75% from 72.7% a year ago. Adjusted cost of goods sold, excluding amortization and impairments of intangible assets, increased slightly to $721 million from $716 million.
Adjusted selling, general and administrative expenses rose 5.9% year over year to $823 million from $777 million, while research and development expenses declined 15.1% to $141 million from $166 million.
Operating income increased 58.8% to $983 million, helped by lower other expenses. Adjusted EBITDA attributable to Bausch Health climbed 32.4% to $1.31 billion.
BHC Raises 2026 Financial Guidance
BHC raised its 2026 consolidated revenue guidance to $10.975-$11.175 billion from $10.79-$11.04 billion. It also increased its adjusted EBITDA projection to $4.315-$4.415 billion from the previous $4.05-$4.18 billion.
Excluding Bausch + Lomb, the company now expects revenues to be in the band of $5.525-$5.625 billion, suggesting growth of 7-9%. Adjusted EBITDA for these businesses is projected to be in the range of $3.225-$3.275 billion, indicating an increase of 12-14% year over year.
For Bausch + Lomb, 2026 revenues are forecast at $5.45-$5.55 billion and adjusted EBITDA at $1.09-$1.14 billion.
Bausch Health's Recent Updates
The company's board authorized a $50 million share repurchase program. The primary objective is to offset dilution from management equity awards expected to vest in 2027.
Management continues to evaluate options to unlock shareholder value, including maximizing the value of Bausch Health and Bausch + Lomb assets. The businesses excluding Bausch + Lomb have now delivered 14 consecutive quarters of year-over-year revenue and adjusted EBITDA growth.
Our Take on BHC's Q3 Performance
BHC delivered solid third-quarter results, benefiting from Xifaxan-led Salix momentum and broad-based growth in its eye-health business. Improved profitability supported another increase in full-year financial guidance.
However, Solta Medical's organic contraction contrasted with its reported revenue gains. Bausch + Lomb also came in marginally below consensus expectations, while higher selling and administrative costs remain an area to watch.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 92.6% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 67.8% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering the average surprise being 32.82%.
Over the past 30 days, loss per share estimates for Iovance Biotherapeutics have narrowed from 49 cents to 45 cents for 2026. Over the same period, estimates for loss per share have also improved from 29 cents to 22 cents for 2027. IOVA shares have skyrocketed 442.5% year to date.
Iovance Biotherapeutics beat estimates in three of the trailing four quarters and met in the remaining one, with the average surprise being 16.82%.
View the Zacks #1 Rank List
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BHC Q3 Earnings Beat on Salix Growth, Stock Gains 9% as Outlook Rises
Key Takeaways
Bausch Health Companies (BHC - Free Report) reported third-quarter 2026 adjusted earnings of $1.77 per share, which increased 52.6% year over year. The figure surpassed the Zacks Consensus Estimate of $1.08, aided by strength in the Salix business.
Revenues rose 9.7% year over year to $2.94 billion and beat the Zacks Consensus Estimate of $2.75 billion. Organic revenues rose 8%, driven by Xifaxan-led Salix growth. The stock is up about 9% in the pre-market hours today following the better-than-expected third-quarter results.
The company reports revenues under two segments: Bausch Health and Bausch + Lomb.
Bausch Health’s revenues amounted to $1.57 billion, up 12% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Bausch Health's Salix Momentum
Salix revenues reached $831 million, up 16% year over year on a reported basis and 14% organically. Xifaxan was the primary growth driver, with sales advancing 16% in the quarter.
Shares of BHC have lost 0.5% year to date against the industry’s 10.2% growth.
Image Source: Zacks Investment Research
The segment exceeded the Zacks Consensus Estimate of $710.52 million and our model estimate of $761.4 million. Overall, Bausch Health's businesses excluding Bausch + Lomb generated $1.57 billion in revenues, up 12% from a year earlier.
BHC's International and Solta Results
International revenues rose 5% to $299 million, with organic growth of 4%, led by Canada. Favorable foreign exchange contributed $4 million. The figure beat the Zacks Consensus Estimate of $286.17 million and our model estimate of $263.8 million.
Solta Medical revenues grew 18% to $165 million, aided by the acquisition of the company's full-service distributor in China. The segment missed the Zacks Consensus Estimate of $169.11 million but exceeded our model estimate of $163.2 million.
Excluding acquisition and currency effects, Solta revenues declined 4% organically, as sales in the Asia-Pacific region decreased modestly.
Bausch Health's Diversified Segment Performance
Diversified segment revenues increased 5% to $271 million, with organic growth also at 5%. The figure surpassed the Zacks Consensus Estimate of $200.72 million and our model estimate of $179.6 million. Double-digit growth in Dermatology drove the organic increase.
Dermatology revenues climbed 16% to $86 million. Neuroscience revenues were unchanged at $146 million, while Generics rose 13% to $18 million. Dentistry sales declined 5% to $21 million.
BHC's Bausch + Lomb Performance
Bausch + Lomb revenues grew 7% to $1.375 billion, with organic revenues also up 7%. The figure was slightly below the Zacks Consensus Estimate of $1.38 billion and matched our model estimate.
Revenue gains were broad-based. Vision Care sales rose 5% to $774 million, Surgical revenues increased 9% to $234 million, and Pharmaceuticals revenues advanced 11% to $367 million.
Bausch Health's Q3 Margin and Cost Trends
In the third quarter, BHC’s adjusted gross margin expanded to 75% from 72.7% a year ago. Adjusted cost of goods sold, excluding amortization and impairments of intangible assets, increased slightly to $721 million from $716 million.
Adjusted selling, general and administrative expenses rose 5.9% year over year to $823 million from $777 million, while research and development expenses declined 15.1% to $141 million from $166 million.
Operating income increased 58.8% to $983 million, helped by lower other expenses. Adjusted EBITDA attributable to Bausch Health climbed 32.4% to $1.31 billion.
BHC Raises 2026 Financial Guidance
BHC raised its 2026 consolidated revenue guidance to $10.975-$11.175 billion from $10.79-$11.04 billion. It also increased its adjusted EBITDA projection to $4.315-$4.415 billion from the previous $4.05-$4.18 billion.
Excluding Bausch + Lomb, the company now expects revenues to be in the band of $5.525-$5.625 billion, suggesting growth of 7-9%. Adjusted EBITDA for these businesses is projected to be in the range of $3.225-$3.275 billion, indicating an increase of 12-14% year over year.
For Bausch + Lomb, 2026 revenues are forecast at $5.45-$5.55 billion and adjusted EBITDA at $1.09-$1.14 billion.
Bausch Health's Recent Updates
The company's board authorized a $50 million share repurchase program. The primary objective is to offset dilution from management equity awards expected to vest in 2027.
Management continues to evaluate options to unlock shareholder value, including maximizing the value of Bausch Health and Bausch + Lomb assets. The businesses excluding Bausch + Lomb have now delivered 14 consecutive quarters of year-over-year revenue and adjusted EBITDA growth.
Our Take on BHC's Q3 Performance
BHC delivered solid third-quarter results, benefiting from Xifaxan-led Salix momentum and broad-based growth in its eye-health business. Improved profitability supported another increase in full-year financial guidance.
However, Solta Medical's organic contraction contrasted with its reported revenue gains. Bausch + Lomb also came in marginally below consensus expectations, while higher selling and administrative costs remain an area to watch.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote
BHC’s Zacks Rank and Other Stocks to Consider
Bausch currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the biotech sector are TG Therapeutics (TGTX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy) and Amneal Pharmaceuticals (AMRX - Free Report) and Iovance Biotherapeutics (IOVA - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 92.6% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 67.8% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering the average surprise being 32.82%.
Over the past 30 days, loss per share estimates for Iovance Biotherapeutics have narrowed from 49 cents to 45 cents for 2026. Over the same period, estimates for loss per share have also improved from 29 cents to 22 cents for 2027. IOVA shares have skyrocketed 442.5% year to date.
Iovance Biotherapeutics beat estimates in three of the trailing four quarters and met in the remaining one, with the average surprise being 16.82%.