Bausch Health Raises 2026 Fiscal-Year Revenue Forecast to $10.975 Billion
Key Facts
On October 28, Bausch Health raised its fiscal 2026 revenue forecast, setting a range of $10.975 billion to $11.175 billion for the consolidated group. The range for the company’s business excluding Bausch + Lomb is $5.525 billion to $5.625 billion, distinguishing the two entities’ revenue in the announced guidance. Chief Executive Thomas Appio said the results "give us confidence to raise full-year guidance again." The update follows quarterly results showing a 32% year-over-year increase in consolidated adjusted EBITDA. At the same time, the company acknowledged factors it expects to weigh on revenue growth in the fourth quarter.
Consolidated adjusted EBITDA was $1.305 billion in the third quarter, the company said, compared with the same period a year earlier. Adjusted diluted earnings per share rose to $1.77 from $1.16, an annual increase of 53%. GAAP net income attributable to Bausch Health was $436 million, while consolidated net income was $446 million. Appio said quarterly adjusted earnings excluding Bausch + Lomb exceeded $1 billion for the first time. He added that cash generation supported a reduction of more than $500 million in net debt during the quarter.
The company reported $581 million in cash generated from operating activities in the third quarter, alongside $539 million in adjusted cash flows from operations. It raised its fiscal 2026 guidance for adjusted cash flows from operations, excluding Bausch + Lomb, to a range of $1.600 billion to $1.675 billion. It also expects revenue growth of between 7% and 9% for that business during the year, with adjusted EBITDA of between $3.225 billion and $3.275 billion. That represents expected growth in adjusted EBITDA of between 12% and 14% compared with the prior year. The company said third-quarter results extended its streak of year-over-year revenue and adjusted earnings growth to 14 consecutive quarters, excluding Bausch + Lomb.
The company expects two factors related to Xifaxan to affect revenue growth in the fourth quarter. The first is an adjustment to gross-to-net rebate accruals tied to distribution-channel inventory, ahead of the new price that takes effect in the Medicare program on January 1, 2027. The second is an assumption that Xifaxan inventory will normalize. The Centers for Medicare & Medicaid Services included the drug among the selected drugs for 2027 and said negotiated prices for the group take effect at the start of that year. The company’s 2025 annual report said the agreed price for Xifaxan will take effect on the same date, with the expected impact on revenue and operating results concentrated mainly in 2027.
Bausch Health shares settled at $6.92 at the close of regular trading on October 28, up 9.67% from the previous close of $6.31, according to data cited by Investing.com. The stock rose to $7.83 after the close, an additional gain of 13.15% following the results announcement. In a separate move, the board authorized a $50 million share repurchase program. The company said the program’s main purpose is to offset dilution associated with the expected vesting of management share awards in 2027. The authorization was among the decisions announced alongside the increase in annual guidance.