Bausch Health Companies Inc.

What they do

Bausch Health develops, manufactures and markets branded, generic and branded generic pharmaceuticals, OTC products and aesthetic medical devices in approximately 90 countries. It operates five reportable segments: Salix (U.S. GI), International, Solta Medical (aesthetic devices), Diversified (U.S. neurology, dermatology, generics, dentistry) and Bausch + Lomb (global Vision Care, Surgical and Pharmaceuticals). Bausch + Lomb was taken public in May 2022 under ticker BLCO, and Bausch Health continues to hold roughly 88% of its shares.

Revenue drivers

• Salix segment — U.S. gastroenterology sales; Xifaxan alone represents roughly 85% of segment revenues. Q2 2026 Salix revenue was $758 million, up 21% year-over-year, with Xifaxan up 26%.
• Bausch + Lomb segment — Global eye health revenue across Vision Care, Surgical and Pharmaceuticals. Q2 2026 revenue was $1,394 million, up 9% reported and 8% organic, the largest single segment.
• International segment — Branded, branded generic and OTC pharmaceuticals sold outside the U.S., excluding B+L and Solta. Q2 2026 revenue was $305 million, up 10% reported and 5% organic.
• Solta Medical and Diversified segments — Solta sells global aesthetic medical devices ($176 million in Q2 2026, up 38% reported but 12% organic, with acquisitions contributing). Diversified U.S. sales were flat at $219 million.

Recent performance

Second quarter 2026 consolidated revenues were $2,852 million, up 13% reported and 11% organic versus $2,530 million a year earlier. GAAP net income attributable to Bausch Health was $258 million and diluted EPS was $0.68, versus $0.40 in the prior-year period; adjusted diluted EPS was $1.26, up 40%. Consolidated adjusted EBITDA attributable to Bausch Health was $1,075 million, up 28% reported. Bausch Health excluding Bausch + Lomb posted its thirteenth consecutive quarter of year-over-year revenue growth, up 16% reported and 13% organic, with $517 million of operating cash flow. Full-year 2025 revenue was $10.27 billion with net income of $157 million, the first positive annual net income shown in the provided series.

Strategy

Management continues to pursue the separation of the Bausch + Lomb eye health business, which could involve monetizing part or all of its stake, transferring shares to shareholders, or a combination; completion depends on achieving targeted debt leverage ratios and required approvals, and on the Xifaxan generics litigation. The remaining company is described as a diversified pharmaceutical business across GI, hepatology, dermatology, neurology, international pharmaceuticals and aesthetic devices. The company cites acquisitions, including DURECT Corporation, as part of its business development activity, and reported 13% organic growth in Q2 2026 excluding B+L. Capital is directed at the business, pipeline and business development, while debt reduction remains a stated priority. Management also cited higher R&D and expense discipline and a focus on long-term value creation.

Risks

• Xifaxan concentration and generic competition — Xifaxan is approximately 85% of Salix segment revenue, making a substantial portion of total company revenue dependent on one product line facing paragraph IV litigation.
• Debt and leverage — Long-term debt was $19.88 billion at June 30, 2026 against total liabilities of $25.60 billion and negative shareholder equity of $1.77 billion, so the company depends on cash generation to service and reduce debt.
• CMS drug price negotiation — Xifaxan was selected for the second round of Medicare drug price negotiation, with negotiated prices expected to take effect in 2027, which could pressure pricing on the company's largest product.
• Separation and regulatory execution — The planned B+L separation remains subject to leverage targets and approvals, and the company also faces product quality, manufacturing facility compliance and regulatory risks, plus tariffs and trade restrictions.

Outlook

Management raised full-year 2026 revenue, adjusted EBITDA and adjusted cash flows from operations guidance following the second quarter, and described the quarter as its highest revenue and adjusted EBITDA growth rates in three years. The company reported its strongest adjusted cash flow from operations since Q4 2024 and reduced net debt by one of its largest amounts since the 2022 refinancing. Management stated it remains focused on investment in the business, pipeline and business development, and on long-term value creation; completion of the B+L separation is not guaranteed.