The raised guidance and strong cash generation signal improving fundamentals, but the Solta Medical organic decline and the $50M buyback (small relative to $2.4B market cap) warrant monitoring. The next catalyst is the Q4 2026 report and any update on the potential separation of Bausch + Lomb.
Price Chart
Executive Summary
Bausch Health reported Q3 2026 revenue of $2.94B (up 10% YoY) and adjusted EPS of $1.77, beating the $1.24 consensus. The company raised full-year 2026 guidance for revenue, Adjusted EBITDA, and Adjusted Cash Flows from Operations, and announced a $50M share repurchase program. The Salix segment led growth with 16% reported revenue increase, while the Solta Medical segment posted a 4% organic decline.
Key Financial Metrics
Key Facts
- Q3 2026 consolidated revenue of $2.941B, up 10% reported and 8% organic YoY
- GAAP diluted EPS of $1.15 vs $0.48 in Q3 2025
- Adjusted diluted EPS of $1.77 vs $1.16 in Q3 2025, a 53% increase
- Consolidated Adjusted EBITDA attributable to Bausch Health of $1.305B, up 32% YoY
- Cash from operations of $813M, up 101% from $405M in Q3 2025
- Full-year 2026 guidance raised: BHC (excl. B+L) revenue $5.525B-$5.625B, Adjusted EBITDA $3.225B-$3.275B, Adjusted Cash Flows from Operations $1.600B-$1.675B
- Board authorized a $50M share repurchase program to offset dilution from management equity vesting in 2027
- Salix segment revenue grew 16% reported and 14% organic, driven by Xifaxan
- Solta Medical segment organic revenue declined 4% due to modest decrease in Asia Pacific
- Cash and cash equivalents of $2.485B as of September 30, 2026, up from $1.309B at year-end 2025
Financial Impact
Adjusted EPS of $1.77 beat consensus of $1.24 by 42.7%; revenue of $2.94B beat consensus of $2.75B by 6.9%; guidance raised across all key metrics
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Salix | $831.0M | +16.0% |
| International | $299.0M | +5.0% |
| Solta Medical | $165.0M | +18.0% |
| Diversified | $271.0M | +5.0% |
| Bausch + Lomb | $1.4B | +7.0% |
Risk Factors
- Solta Medical organic revenue declined 4% YoY, indicating potential headwinds in the aesthetics segment
- Xifaxan faces potential pricing pressure from the Inflation Reduction Act starting in 2027
- High debt load of $20.6B remains a significant overhang despite improved maturity profile
- Tariff uncertainty could impact international operations and supply chain costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000885590-26-000121 |
| Document: bhc-20261028.htm | 0000885590-26-000121 |
| Document: 0000885590-26-000121-index-headers.html | 0000885590-26-000121 |
| Document: 0000885590-26-000121-index.html | 0000885590-26-000121 |
| Document: 0000885590-26-000121.txt | 0000885590-26-000121 |
| 8-K Data (Synthetic) | 0000885590-26-000121 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | $8.36 | awaiting T+20 | awaiting T+20 | $8.20 (−1.91%) |
Oct 28, 2026 2d ago | Press Release | $8.08 | awaiting T+20 | awaiting T+20 | $8.20 (+1.49%) |
Oct 6, 2026 24d ago | Press Release | $6.02 | awaiting T+20 | awaiting T+20 | $8.20 (+36.21%) |
Aug 27, 2026 9w ago | Press Release | $6.30 $5.65 | ▼ −10.32% | ▼ −9.81% | $8.20 (+30.16%) |
Apr 8, 2026 29w ago | DEFA14A | $5.39 $5.65 | ▲ +4.82% | ▼ −2.74% | $8.20 (+52.13%) |
US Market Status
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