Bausch + Lomb (BLCO) Q1 2026 earnings summary

Executive summary

• Achieved 6% constant currency revenue growth and 59% adjusted EBITDA growth (excluding acquired IPR&D) year-over-year in Q1 2026, with margin expansion driven by structural changes and disciplined execution.

• Revenue reached $1.244 billion, up 9% as reported, with strong performance across pharmaceuticals (+12% cc), vision care (+5% cc), and surgical (+1% cc) segments.

• Net loss narrowed to $71 million from $212 million year-over-year, with operating income improving to $33 million from a loss of $83 million.

• Continued investment in R&D, up 17% in Q1, supporting a robust pipeline and future innovation.

• Raised full-year 2026 revenue guidance to $5.42–$5.52 billion and adjusted EBITDA guidance to $1.01–$1.06 billion, reflecting confidence in growth and margin expansion.

Financial highlights

• Q1 revenue: $1.244 billion, up 6% constant currency and 9% reported year-over-year; foreign exchange tailwind of $42 million.

• Adjusted EBITDA: $200 million (excluding acquired IPR&D), up 59% year-over-year; margin expanded to 16.1%.

• Adjusted gross margin: 61.2%, up 170 basis points year-over-year.

• Adjusted EPS (excluding acquired IPR&D): $0.08, compared to a loss of $0.07 in prior year; GAAP EPS improved to ($0.20) from ($0.60).

• Adjusted cash flow from operations: $45 million; CapEx: $100 million in Q1; cash and equivalents at quarter-end: $279 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $5.42–$5.52 billion (5.3%–7.2% constant currency growth), and adjusted EBITDA guidance to $1.01–$1.06 billion.

• Adjusted gross margin expected at ~62%; R&D investment at 7.5%–8% of revenue; interest expense ~$365 million; adjusted tax rate ~19%.

• CapEx for 2026 expected at $285 million, weighted to first half; liquidity supported by cash, receivables sales, and revolving credit facility.

• Ongoing cost savings and transformation initiatives expected to further improve operating performance.