Bausch + Lomb Names Appio Interim CEO, Expects to Raise 2026 Earnings Guidance
Key Facts
Bausch + Lomb appointed Thomas Appio interim chief executive officer, effective immediately, while he remains CEO of Bausch Health, according to the companies' appointment announcement. The leadership transition coincided with the companies' announcement that they expect to raise their 2026 guidance for adjusted earnings before interest, taxes, depreciation and amortization, excluding acquired in-process research and development. That outlook is based on preliminary quarterly results, which the companies used as the basis for expecting an increase in annual guidance for the adjusted earnings measure specified in the announcement. They attributed the anticipated increase to continued strong business performance in the current period, alongside expectations for stronger performance over the remainder of the year. The announcement expressed an expectation of higher guidance for this measure, with the companies to provide further financial performance details when they report results.
Detailing the former CEO's departure, Bausch + Lomb said in a filing with the U.S. Securities and Exchange Commission that Brent Saunders and the board had agreed he would leave the company. The filing confirmed that his departure did not stem from any dispute or disagreement with the company, its management or its board over operations, policies or practices. The departure agreement includes a total cash payment to Saunders of $75.5 million, among the financial terms the company disclosed to settle his exit from the role. His entitlement to the payment remains conditional on his signing a general waiver and release of claims and not revoking it after signing, under the agreement's terms. In exchange, all of Saunders' equity awards and stock-based incentives, whether vested or unvested, were forfeited and canceled upon execution of the agreement.
The departure arrangements also include Bausch + Lomb covering the legal fees Saunders incurs in negotiating his exit agreement, according to the same regulatory filing. The company capped that coverage at $50,000 under a provision concerning legal expenses associated with reaching the departure agreement with the former CEO. Saunders is also entitled to continue participating in the company's group health insurance plans for two years after his departure, under the arrangements set out in the agreement. For the handover of responsibilities, he will be required to provide reasonable transition assistance to the company for up to 90 days after his departure, according to the filing. He will receive no additional compensation for that assistance, other than reimbursement of reasonable expenses incurred in fulfilling this obligation during the specified period.
Appio's appointment as interim CEO follows his appointment as chairman of Bausch + Lomb in August 2026, according to his official biography published by the company. He has served as CEO of Bausch Health, a role he will retain alongside his new assignment, since May 2022, according to the same biography. Appio has also served on Bausch Health's board since that date, alongside his executive responsibilities at the company, which he continues to lead during the interim assignment. Commenting on taking the role, Appio said Bausch + Lomb was positioned to build on its current business momentum, according to the appointment announcement. He added that this position enables the company to "deliver sustainable growth," linking his comments on his new assignment to continuing to build on the momentum he cited in the statement.
Bausch + Lomb's latest published quarterly results before the appointment announcement provide context for its performance ahead of the management transition, with revenue of $1.394 billion. Revenue rose 9% on a reported basis from the comparable period, according to the quarterly results statement the company published before the executive leadership change. On a constant-currency basis, revenue grew 8% from the comparable period, compared with the reported growth rate, which included the impact of currency movements. In its operating breakdown, the company attributed its surgical segment's performance during that period to growth in its premium intraocular lens portfolio, according to the results statement. Bausch + Lomb posted a net loss attributable to shareholders of $14 million in the same quarter, alongside the revenue growth it reported in its announcement.
Bausch + Lomb had previously set annual revenue guidance at between $5.440 billion and $5.540 billion, as part of its financial outlook announced before the leadership transition. Its previous annual guidance range for adjusted earnings before interest, taxes, depreciation and amortization, excluding acquired in-process research and development, was between $1.025 billion and $1.075 billion. Both companies are now in a financial quiet period, according to the appointment announcement, pending the results release that will provide further details on performance and anticipated guidance. Bausch + Lomb scheduled its third-quarter financial results presentation for 28 October 2026, according to the upcoming events and presentations calendar on its investor relations website. The presentation is scheduled to begin at 08:00 a.m. U.S. Eastern Time, the designated time for presenting the company's quarterly results and discussing details of its financial performance.