Bausch + Lomb's Q2 2025 Earnings: Unpacking Contradictions on Tariffs, Market Leadership, and Sales Projections

Tariff impact on financials, pharmaceutical product market leadership, tariff impact and absorption, and Miebo and Xiidra sales expectations are the key contradictions discussed in Bausch + Lomb's latest 2025Q2 earnings call.



Revenue and Segment Performance:
- Bausch + Lomb reported total company revenue of $1.278 billion for Q2 2025, reflecting year-over-year growth of 3%.
- The Surgical segment saw a 1% increase, despite the impact of the enVista recall, and Vision Care revenue grew by 6%, driven by consumer and contact lenses segments.

Contact Lens and Consumer Growth:
- The contact lens business grew by 7%, outpacing market averages, and the consumer business by 6%.
- Key growth drivers included Daily SiHy franchise up 36%, Ultra monthly lenses up 8%, and strong performance in the U.S. and international markets.

Pharma Segment Challenges and Opportunities:
- The Pharma segment saw a 1% decline in revenue due to a 29% decline in the U.S. generics business.
- The decline was attributed to managed care payment and IRA headwinds, while the U.S. branded Rx business grew by 8%, driven by MBU and Xiidra.

Surgical Segment Recovery:
- The Surgical segment was impacted by a $29 million impact from the enVista recall, but excluding this, it would have grown by 15%.
- The recovery was attributed to increased consignment and a push to recapture momentum, with expectations to ramp up further in Q4.

Tariff and Currency Impact:
- Tariffs were estimated to have a 40 basis points impact on 2025 guidance, with the policy allowing for offset in current conditions.
- The company focused on mitigating tariff impacts through supply chain adjustments and strategic sourcing.