Bausch (BHC) Down 15.2% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Bausch Health (BHC). Shares have lost about 15.2% 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? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Bausch Health Cos Inc. before we dive into how investors and analysts have reacted as of late.

BHC Stock Down on Q4 Earnings Miss, Salix Drives Revenue Growth

Bausch reported mixed results for the fourth quarter of 2025. Adjusted earnings per share (EPS) of $1.08 missed the Zacks Consensus Estimate of $1.21 and down from $1.15 recorded in the year-ago quarter.

Total revenues of $2.8 billion were up 9% year over year. The top line managed to beat the Zacks Consensus Estimate of $2.7 billion.

Excluding the impact of foreign exchange of $59 million, acquisitions of $1 million, and divestitures and discontinuations of $17 million, revenues increased 6% organically year over year.

BHC's Q4 in Detail

The company reports revenues under two segments: Bausch Health and Bausch + Lomb.

Bausch Health’s revenues came in at $1.4 billion, up 9% 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 $693 million, up 9% year over year. Within this segment, Xifaxan is the top revenue generator, generating sales of $607 million, up 10%, led by strong volume growth. Relistor’s revenues were $52 million, up 10% year over year. However, Trulance’s revenues of $30 million were down 16% year over year.

Xifaxan 550 mg tablets are indicated for reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.

Salix’s revenues comfortably beat the Zacks Consensus Estimate of $670 million and our model estimate of $676.8 million.

International revenues totaled $306 million, up 10% year over year, led by growth in EMEA markets. Latin America markets also put up a solid performance across core brands. However, sales in Canada were down 6% year over year due to prior-year generic supply benefits.

The reported figure beat the Zacks Consensus Estimate of $280 million and our model estimate of $270 million. Excluding the impact of foreign exchange of $23 million and divestitures and discontinuations of $2 million, revenues increased 2%.

Solta Medical reported revenues of $137 million, down 1% year over year. The figure missed the Zacks Consensus Estimate of $143 million and our model estimate of $140 million. Results were impacted by anticipated one-time events related to Solta’s acquisition of Shibo's full-service aesthetics distribution business in China.

Diversified Product’s revenues amounted to $255 million, up 12% from the year-ago level. Within this segment, neurology sales increased 4% year over year, driven by favorable net realized pricing. Sales from the Dentistry business were $24 million. The Generics business was flat. The Dermatology business gained 11%, driven by strong Cabtreo growth.

Diversified Product’s revenues beat the Zacks Consensus Estimate of $234 million and our model estimate of $238 million.

Revenues from Bausch + Lomb totaled $1.4 billion, up 10% 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 $1.37 billion.

Excluding the impact of foreign exchange of $37 million, acquisitions of $1 million and divestitures and discontinuations of $5 million, Bausch + Lomb segment revenues were up 7% organically on a year-over-year basis.

BHC’s 2025 Results

Adjusted EPS of $3.73 missed the Zacks Consensus Estimate of $3.90 and was down from $3.75 in 2024.

Revenues of $10.3 billion were up 7% from 2024 and surpassed the Zacks Consensus Estimate of $10.17 billion.

BHC’s Pipeline Development

Last month, BHC announced the failure of the late-stage RED-C clinical program.

The RED-C program consists of two global, randomized, double-blind, placebo-controlled phase III studies involving more than 1,000 patients across 398 sites in 17 countries. The studies evaluated rifaximin solid soluble dispersion (SSD) for the delay of the first episode of hepatic encephalopathy (HE) in adults with liver cirrhosis who had no prior HE episodes.

The trials did not meet the primary endpoint even though the compound was safe and well-tolerated.

The FDA granted Breakthrough Therapy Designation for larsucosterol (Epigenetic Modulator) for the treatment of Alcohol-Associated Hepatitis (AH).
BHC initiated the late-stage study with the first patient randomized in January 2026.

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 also received approval from the Chinese National Medical Products in August 2025. The company also received approval in Australia in December 2025.

BHC’s 2026 Guidance

BHC expects 2026 revenues to be in the range of $10.625-$10.875 billion. The Zacks Consensus Estimate for the same is pegged at $10.49 billion.

Excluding Bausch + Lomb, revenues are now projected to be in the range of $5.250-$5.400 billion. Bausch + Lomb revenues are expected to be in the range of $5.375-$5.475 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Bausch has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, 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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