Bausch Health Companies Stock Earnings Reports

Bausch Health reported a strong Q2 2026 with 13 consecutive quarters of revenue and adjusted EBITDA growth. Consolidated results (excluding Bausch + Lomb for the call focus) included revenue of $1.458B (up 16% YoY), adjusted EBITDA of $865M (up 28% YoY), adjusted cash flow from operations of $471M (up $116M YoY), and an adjusted EBITDA margin of 59% (up 530 bps YoY). The company generated meaningful free cash flow and reduced net debt to $13.7B, lowering leverage. Key segment drivers: Salix (Xifaxan) grew 21% driven by pricing and resilient demand in served channels; Solta delivered revenue up 38% (China/Asia strength) and segment profit up 69% following the integration of a full‑service distributor in China, with management citing an approximate $330M full‑year run rate and potential $1B of incremental enterprise value (or ~$2–$3/share) if conservatively valued. International delivered continued organic growth (EMEA 14 consecutive quarters; LATAM strong), while Diversified was flat. Management raised full-year 2026 guidance (ex‑Bausch + Lomb): revenue now $5.35–5.50B, adjusted EBITDA $3.025–3.10B, and adjusted operating cash flow $1.4–1.475B. They warned of second-half headwinds (~$150M gross‑to‑net accrual change, $50M Aplenzin LOE impact starting Q3, and ~$75M gradual Medicaid/340B erosion) and kept implicit 2027 adjusted EBITDA guidance at $2.7B (assuming Xifaxan exclusivity through 2027). Capital allocation priorities remain: fix capital structure (delever), reinvest in the business, selective business development (preference for near‑commercial or high‑synergy assets), and ultimately maximize value of Bausch + Lomb for shareholders.