Bausch + Lomb (BLCO) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.375B, up 7% reported and 8% at constant currency; adjusted EBITDA rose 34% to $325M and all three segments grew.

• Full-year 2026 revenue and adjusted EBITDA guidance increased on Q3 strength and an improved outlook for the remainder of the year.

• Performance marked a fourth consecutive quarter meeting Investor Day commitments; interim CEO priorities include profitability, efficiency, disciplined innovation investment and Vision 2027 targets.

Financial highlights

• Q3 revenue rose $94M YoY; volume added $63M and pricing $31M, partly offset by $6M of FX headwind and $2M from divestitures and discontinuations.

• GAAP operating income was $155M versus $95M; attributable net income was $32M versus a $28M loss, and adjusted net income was $123M versus $66M.

• Adjusted gross margin increased 300 bps to 64.7%, including a one-time ~$14M tariff refund; excluding the refund, margin was 63.6%.

• Q3 operating cash flow was $233M and free cash flow was $178M after $55M of capex; 9M operating cash flow reached $418M.

Outlook and guidance

• FY26 revenue guidance rose to $5.450B–$5.550B, with constant-currency growth of 6.1%–8.0%; underlying outlook increased $15M, partly offset by $5M lower FX tailwinds.

• FY26 adjusted EBITDA guidance increased $65M to $1.090B–$1.140B; midpoint implies ~20.3% margin and 25% growth.

• FY26 assumptions include adjusted gross margin of 62.5%–63.0%, net interest expense of ~$365M, adjusted tax rate of ~18% and capex of ~$285M.

• Management remains focused on meeting or exceeding three-year Investor Day targets; the 2028 adjusted EBITDA margin target is 23%.