It has been about a month since the last earnings report for Bausch Health (BHC). Shares have lost about 5.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Bausch due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
BHC Q1 Earnings Miss Estimates, Sales Grow on Salix & Solta Strength
Bausch Health reported mixed results for the first quarter of 2026.
Adjusted earnings per share (EPS) of 78 cents missed the Zacks Consensus Estimate of 81 cents but were up from 59 cents recorded in the year-ago quarter.
Total revenues of $2.5 billion were up 12% year over year. The top line beat the Zacks Consensus Estimate of $2.4 billion.
Excluding the impact of a foreign exchange of $71 million, acquisitions of $33 million and divestitures and discontinuations of $4 million, revenues increased 7% organically year over year.
BHC's Q1 in Detail
The company reports revenues under two segments: Bausch Health and Bausch + Lomb.
Bausch Health’s revenues totaled $1.3 billion, up 14% year over year. Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.
Salix’s revenues totaled $639 million, up 18% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $559 million, up 21%, led by strong demand growth. Relistor’s revenues were $40 million.
However, Trulance’s revenues of $31 million were down 2% year over year.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix’s revenues beat the Zacks Consensus Estimate of $575 million and our model estimate of $589 million.
International revenues totaled $285 million, up 9% year over year, led by 12% growth in EMEA markets. Latin America markets also put up a solid performance driven by commercial product growth, offset by lower volume. However, sales in Canada were down 4% year over year.
The reported figure beat the Zacks Consensus Estimate of $272 million and our model estimate of $268 million. Excluding the impact of foreign exchange of $25 million and divestitures and discontinuations of $1 million, revenues were relatively flat on an organic basis.
Solta Medical reported revenues of $171 million, up 51% year over year, driven by China and South Korea. The figure beat the Zacks Consensus Estimate of $122 million and our model estimate of $117 million. Results also benefited from Solta’s acquisition of Shibo's full service aesthetics distribution business in China.
Diversified Product’s revenues amounted to $185 million, down 10% from the year-ago level. Within this segment, neuroscience sales decreased 4% year over year due to lower volume. The Dermatology business was down 28% due to partial channel destocking despite solid Cabtreo and Jublia demand. Sales from the Dentistry business were $21 million. The Generics business generated sales of $21 million.
Diversified Product’s revenues missed the Zacks Consensus Estimate of $219 million and our model estimate of $228 million.
Revenues from Bausch + Lomb totaled $1.24 billion, up 9% year over year, driven by growth across each business — vision care, surgical and pharmaceuticals. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.22 billion.
Excluding the impact of foreign exchange of $42 million, acquisitions of $1 million and divestitures and discontinuations of $3 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.
BHC’s Pipeline Development
The registrational phase III program on larsucosterol to evaluate the safety & efficacy in patients with severe Alcohol-Associated Hepatitis (AH) was initiated in early 2026.
The FDA had earlier granted Breakthrough Therapy Designation to larsucosterol for the treatment of AH.
An internal review on amiselimod, an S1P modulator, a once-daily oral treatment of mild- to moderate ulcerative colitis, is ongoing.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, the Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025. It was launched in Canada in February 2026.
BHC Updates 2026 Guidance
BHC now expects 2026 revenues to be in the range of $10.670-$10.920 billion (previous guidance: $10.625-$10.875 billion). The Zacks Consensus Estimate is pegged at $10.68 billion.
Excluding Bausch + Lomb, revenues are still projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are now expected to be in the range of $5.420-$5.520 billion (previous guidance: $5.375-$5.475 billion).
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Bausch has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Bausch Health Cos Inc. (BHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).