Bausch + Lomb Q2 2026 Earnings: Broad-Based Growth, Upgraded Guidance, and Key Developments
Key Financial Highlights
- Revenue: \$1.394 billion in Q2 2026, up 9% as reported and 8% on a constant currency basis over Q2 2025.
- Operating Income: \$83 million, a dramatic turnaround from an operating loss of \$11 million in Q2 2025.
- Net Loss: GAAP net loss attributable to Bausch + Lomb narrowed to \$14 million from \$62 million a year ago. Adjusted net income (non-GAAP) rose to \$55 million from \$25 million.
- Adjusted EBITDA (non-GAAP): \$241 million, up \$50 million year-over-year. Adjusted EBITDA excluding acquired IPR&D (non-GAAP) was \$246 million, up \$54 million.
- Cash Flow from Operations: \$153 million, a substantial increase from \$35 million in Q2 2025.
- Earnings Per Share: GAAP EPS was (\$0.04) versus (\$0.18) last year, while Adjusted EPS (non-GAAP) was \$0.15, up from \$0.07.
Segment Performance
- Vision Care: Revenue of \$784 million (+4% reported, +4% constant currency). Growth driven by daily SiHy, Biotrue ONEday, ULTRA monthly lenses, and over-the-counter dry eye products.
- Surgical: Revenue of \$256 million (+19% reported, +16% constant currency). Exceptional growth in premium intraocular lenses (IOLs), with premium products now making up 13% of surgical revenue (up from 6% in 2025).
- Pharmaceuticals: Revenue of \$354 million (+15% reported, +14% constant currency). Growth driven by MIEBO and XIIDRA, with 27% combined revenue growth in the first half versus prior year, and increased international sales.
Guidance Upgrade & Forward-Looking Statements
- Upgraded Full-Year 2026 Guidance:
- Revenue: Raised to \$5.44B-\$5.54B (previously \$5.42B-\$5.52B), 5.8-7.7% constant currency growth targeted.
- Adjusted EBITDA (excluding acquired IPR&D): Increased to \$1.025B-\$1.075B (previously \$1.01B-\$1.06B).
- Foreign Exchange Tailwinds: Now expected at \$45M (down \$5M from prior guidance due to moderating exchange rates).
- Guidance reflects continued strong business performance in Q2 and anticipated strength in the remainder of 2026.
Pipeline & Product Updates
- enVista Beyond™ Investigational IOL: Topline results from a pivotal clinical study reported. The study met several co-primary effectiveness endpoints, demonstrating improved and statistically superior intermediate vision and greater depth of focus versus monofocal controls, while maintaining distance visual acuity. Safety profile was favorable with no device-related adverse events or secondary interventions. However, it narrowly missed predefined targets for depth of focus and intermediate visual performance. Regulatory engagement is ongoing for next steps in submission.
- Product Launches & Momentum: Blink® Triple Care Preservative Free contributed to +12% revenue growth for the Blink franchise. Other key franchises (daily SiHy, Biotrue ONEday, ULTRA monthly) continue to show strong growth.
Balance Sheet & Share Count
- Cash, Equivalents & Restricted Cash: \$378 million as of June 30, 2026.
- Basic Weighted Average Shares: 357.1 million for Q2 2026; Diluted weighted average shares: 360.2 million.
Strategic & Corporate Developments
- Separation from Bausch Health: The company continues to consider plans to become a fully independent public company, pending achievement of targeted debt leverage ratios and necessary approvals. There are risks around the timing and completion of this separation, potential impacts on relationships, and tax implications.
- Risks Noted: The company highlights risks from macroeconomic conditions (inflation, interest rates, recession risk), regulatory and tariff uncertainties (including the “One Big Beautiful Bill Act”), as well as challenges in supply chain, adoption of artificial intelligence, and geopolitical factors.
Non-GAAP Financial Information
- The company uses a range of non-GAAP metrics (Adjusted EBITDA, Adjusted Net Income, Constant Currency Revenue, etc.) to supplement GAAP results, which are detailed in the financial tables and reconciliations.
- Non-GAAP measures are used for internal performance assessment, executive compensation, and are considered useful for investor analysis, but the company cautions that they are not a substitute for GAAP measures.
Investor-Relevant Takeaways
- Upgraded guidance is a clear positive and may be price sensitive, reflecting management’s confidence in business momentum for the remainder of 2026.
- Significant improvement in operating income and cash flow from operations signals enhanced operational efficiency and financial health.
- Continued strong growth in premium products (IOLs, pharmaceuticals) and successful new product launches could drive future outperformance.
- Progress on the enVista Beyond IOL program, despite narrowly missed endpoints, could offer future upside if regulatory approval is achieved.
- Potential risks remain around the planned separation from Bausch Health and external economic factors.
Conference Call Details
Date: Wednesday, July 29, 2026
Time: 8 a.m. ET
Webcast: Link
Dial-in: +1 (888) 506-0062 (North America), +1 (973) 528-0011 (International)
Access Code: 415531
Replay: +1 (877) 481-4010 (North America), +1 (919) 882-2331 (International), Passcode: 53394 (until Aug. 12, 2026)
Contact Information
- Media Contact: T.J. Crawford, [email protected], (908) 705-2851
- Investor Contact: George Gadkowski, [email protected], (877) 354-3705 (toll free), (908) 927-0735
Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors should review the company’s official filings and consult with their financial advisors before making investment decisions. The company’s forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current expectations.
