Bausch Health raises 2026 guidance on 14 straight quarters of growth

Third-quarter consolidated revenues hit $2.94 billion, up 10% from $2.68 billion in the same quarter last year. Stripping out acquisitions and divestitures, organic revenue growth was 8%. The company's Solta Medical segment, which makes aesthetic devices, posted $165 million in quarterly revenue, up 18% from $140 million a year earlier, though that gain came partly from acquiring its China distributor. Organic revenue for Solta actually fell 4% in the quarter as the Asia Pacific region declined modestly.

The company now guides full-year 2026 revenues of $10.975 billion to $11.175 billion, with adjusted EBITDA of $4.315 billion to $4.415 billion. For Bausch Health excluding its Bausch + Lomb eye-care segment, the company raised guidance on revenue, adjusted EBITDA, and adjusted cash flows from operations. Bausch Health excluding Bausch + Lomb is guiding revenues of $5.525 billion to $5.625 billion and adjusted EBITDA of $3.225 billion to $3.275 billion.

A milestone hit in the quarter: adjusted EBITDA for Bausch Health excluding Bausch + Lomb exceeded $1 billion for the first time, reaching $1.305 billion in Q3 alone, up 32% from $986 million in the prior year period. CEO Thomas J. Appio attributed the performance to "disciplined execution across the portfolio" and noted the company reduced net debt by more than $500 million during the quarter.

The company generated $813 million in cash from operating activities in Q3, more than double the $405 million in the prior year quarter. Cash and equivalents stood at $2.485 billion as of September 30, up from $1.309 billion at year-end 2025.

The Salix segment, focused on gastrointestinal products, drove much of the growth. Salix revenues were $831 million, up 16% from $716 million, with Xifaxan contributing 16% revenue growth. The International segment posted $299 million in revenue, up 5% from $286 million, with Canada leading organic growth of 4%. The Diversified segment, which includes dermatology, posted 5% organic revenue growth led by double-digit gains in dermatology products, generating $271 million in quarterly revenue versus $258 million a year prior.

Bausch + Lomb, the eye-care unit, generated $1.375 billion in third-quarter revenue, up 7% from $1.281 billion. Organic revenue growth for the segment was also 7%, after accounting for foreign exchange headwinds of $6 million, acquisitions of $8 million, and divestitures and discontinuations of $2 million.

Consolidated net income attributable to Bausch Health reached $436 million in Q3 2026, compared with $179 million in Q3 2025. Diluted earnings per share came to $1.15, up from $0.48. Adjusted earnings per share hit $1.77, a 53% increase from $1.16 in the prior year quarter. Consolidated adjusted net income was $673 million versus $434 million.

The guidance for full-year 2026 includes the estimated impact of applicable tariffs as of October 28. For Bausch Health excluding Bausch + Lomb, the company is guiding adjusted cash flows from operations of $1.6 billion to $1.675 billion. Bausch + Lomb is guiding revenues of $5.45 billion to $5.55 billion and adjusted EBITDA of $1.09 billion to $1.14 billion.

Bausch Health's board authorized a $50 million share repurchase program aimed at offsetting dilution from management equity awards expected to vest in 2027. The company said it remains "committed to evaluating all options for unlocking shareholder value, including maximizing the value of our Bausch Health and Bausch + Lomb assets," language that signals potential strategic moves ahead. The company also noted it had completed major refinancing initiatives in the prior twelve-month period that materially improved its debt maturity profile.

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