Bausch Health (BHC) Q1 2026 earnings summary

Executive summary

• Achieved 12 consecutive quarters of year-over-year revenue and adjusted EBITDA growth, with consolidated revenue rising 12% to $2.524 billion, driven by Salix, Solta Medical, Bausch + Lomb, and International segments.

• Adjusted EBITDA grew 27% to $837 million, while adjusted net income rose 35% to $296 million; adjusted EPS increased 32% to $0.78.

• GAAP net loss widened to $1,423 million due to a $1,426 million goodwill impairment in the Salix segment after failed Phase 3 trials.

• Cash flow from operations increased to $230 million, with adjusted cash flow from operations at $374 million; net debt reduced by over $100 million.

• Focused on R&D innovation, business development, and optimizing capital structure, including major refinancing and acquisitions.

Financial highlights

• Total revenue reached $2.524 billion (+12% YoY); adjusted EBITDA was $837 million (+27% YoY); adjusted net income was $296 million.

• Adjusted gross margin improved 100 bps to 70.9% year-over-year.

• Operating loss was $950 million, mainly due to the goodwill impairment.

• Cash and cash equivalents stood at $1,299 million as of March 31, 2026.

• Adjusted cash flow from operations was $374 million, up from $138 million in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance: $10.67–$10.92 billion; adjusted EBITDA: $3.89–$4.01 billion; adjusted cash flow from operations: $1.20–$1.28 billion.

• Bausch Health (excluding Bausch + Lomb) revenue guidance: $5.25–$5.40 billion; adjusted EBITDA: $2.88–$2.95 billion.

• Guidance includes anticipated impact of new pharma tariffs effective September 2026 and ongoing uncertainty from evolving trade measures.

• Management expects to remain in compliance with debt covenants and meet debt service obligations over the next twelve months.

• Bausch + Lomb segment guidance increased to $5.42–$5.52 billion in revenue and $1.01–$1.06 billion in adjusted EBITDA.