Why Bausch Health Companies Was Crawling Higher This Week
Key Points
There was notable growth on both the top and bottom lines.
The two metrics also topped analyst estimates.
Earlier this week Bausch Health Companies (NYSE: BHC) delivered an estimates-beating first quarter, in an encouraging start to its 2026 financial year. Those beats weren't overwhelming, however, while annual revenue guidance broadly met analyst expectations. As of early Friday morning, Bausch's stock was up by nearly 2% week-to-date, according to data compiled by S&P Global Market Intelligence.
Eyes on quarterly results
Just after market close on Wednesday, Bausch published those quarterly figures. The company earned $2.52 billion in revenue, up 12% year over year.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
This was mainly propelled by its foundational Bausch + Lomb eyecare business; its take for the period was $1.24 billion, for a 9% gain. Other double-digit risers were its Salix and Solta Medical segments; they increased by 18% and 51%, respectively.
On the bottom line, net income not under generally accepted accounting principles (GAAP) sharply increased by 35% to $296 million, or $0.78 per share.
The consensus analyst estimates were $2.42 billion for revenue, and $0.68 per share for non-GAAP (adjusted) bottom-line profitability.
Size and sprawl
In its earnings release, Bausch emphasized the priority it has placed on its pipeline, noting that it intended to advance the investigational hepatitis drug larsucosterol. The healthcare company, somewhat of a sprawling conglomerate, also aims to consider "pursuing business development opportunities aligned with our strategic priorities," as it quoted CEO Thomas Appio as saying.
Bausch maintained its full-year 2026 guidance, specifically its revenue forecast of $10.67 billion to $10.92 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at nearly $3.89 billion to $4.01 billion. It did not provide profitability guidance.
The company didn't hesitate to point out that, including the first quarter, it has achieved 12 consecutive quarters of year-over-year revenue growth. While this indicates skill and discipline within its ranks, given its rather sprawling (and to me, unfocused) structure, I wouldn't be so eager to own stock in the company.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Bausch Health Companies. The Motley Fool has a disclosure policy.