Bausch Health (BHC) Q2 2026 earnings summary

Executive summary

• Achieved 13th consecutive quarter of top and bottom line growth, with all segments contributing to profit and a historically high 59% adjusted EBITDA margin.

• Q2 2026 consolidated revenue rose 13% year-over-year to $2.85B, with net income up 74% to $258M and EPS at $0.68.

• Adjusted EBITDA grew 28% to $1.08B, and adjusted cash flows from operations increased 44% to $637M.

• Net debt reduced by $434M in Q2, reflecting strong cash generation and disciplined capital allocation.

• A $1.43B goodwill impairment in Salix led to a six-month net loss, despite strong operating results.

Financial highlights

• Q2 2026 revenue: $2.85B (+13% YoY); adjusted EBITDA: $1.075B (+28% YoY); adjusted gross margin: 72.9% (+230 bps YoY).

• Net income attributable to shareholders was $258M ($0.68/share); adjusted EPS (non-GAAP) rose 40% to $1.26.

• Operating income rose to $740M from $444M in the prior year.

• Adjusted cash flow from operations was $637M in Q2, up 44% year-over-year.

• Cash and cash equivalents stood at $1.84B as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $10.79–$11.04B; adjusted EBITDA guidance increased to $4.05–$4.18B.

• Adjusted cash flows from operations guidance raised to $1.4–$1.475B.

• Guidance incorporates estimated impact of tariffs, macroeconomic uncertainties, and anticipated revenue pressure in 2027 from Medicare price negotiations and generic competition.

• 2027 adjusted EBITDA guidance remains at $2.7B, assuming XIFAXAN exclusivity until Jan 2028.

• Second half growth rates expected to be lower due to inventory accruals, generic competition, and Medicaid/340B erosion.