BHC · Bausch Health Companies Inc.

Bausch Health delivered strong top-line growth with Q1 2026 consolidated revenues of $2.52 billion, a 12% increase on a reported basis and 7% organically over Q1 2025, driven by robust performances across key segments. Salix led with 18% revenue growth to $639 million, primarily from 21% expansion in Xifaxan. Bausch Health excluding Bausch + Lomb (BHC excl B+L) achieved 14% reported and 9% organic growth to $1.28 billion, marking the twelfth consecutive quarter of year-over-year increases, with Solta Medical surging 51% reported (19% organic) aided by the Shibo acquisition in China. Bausch + Lomb grew 9% reported (6% organic) to $1.24 billion. Despite this momentum, GAAP results were severely impacted by a $1,426 million goodwill impairment on Salix's RED-C program, resulting in a $950 million operating loss and $1,423 million net loss, or ($3.82) per share. Non-GAAP metrics shone brighter, with Adjusted EBITDA rising 27% to $837 million and Adjusted EPS up 32% to $0.78, reflecting operational strength and gross profit gains partially offset by higher interest. Cash generation remained solid at $230 million from operations, up 9%, supporting a $1,299 million cash position. Management, led by CEO Thomas J. Appio, highlighted strategic execution, pipeline progress including larsucosterol for alcohol-associated hepatitis, and reaffirmed full-year 2026 guidance for consolidated revenues of $10.67-10.92 billion (2-5% growth), Adjusted EBITDA of $3.885-4.010 billion (3-5% growth), and BHC excl B+L metrics unchanged, incorporating tariff impacts. The company emphasizes balance sheet strengthening post-refinancings and exploring value-unlocking options for its assets.