GET DAILY SIGNALSBausch Health (BHC) Delivers Q3 Beat and Raises Guidance, Shares Climb +12.5% After Hours
Key Takeaways
- Bausch Health reported third quarter 2026 adjusted earnings per share (EPS) of $1.77, comfortably ahead of the consensus estimate near $1.27.
- Consolidated revenue reached $2.94 billion, above the roughly $2.75 billion estimate and up 10% from $2.68 billion a year earlier.
- Management raised full-year 2026 revenue and adjusted EBITDA guidance, reflecting stronger momentum across the portfolio.
- The company marked its fourteenth consecutive quarter of year-over-year revenue and adjusted EBITDA growth.
- Quarterly adjusted EBITDA excluding Bausch + Lomb surpassed $1 billion for the first time, supporting more than $500 million of net debt reduction.
- Shares jumped roughly 12.5% in after-hours trading following the release.
Putting the Quarter in Context
Bausch Health Companies Inc. (BHC) reports across two main segments: the core Bausch Health business covering Salix, International, Solta Medical, and Diversified Products, plus the separately tracked Bausch + Lomb eye care unit. This quarter’s results offer a useful check on whether the company can keep extending its streak of revenue and adjusted EBITDA growth while continuing to chip away at its debt load. With prior guidance raises already in place, the focus stays on execution, pricing power, and cash flow that can support further deleveraging.
Reported Results
Adjusted EPS came in at $1.77, beating the roughly $1.27 consensus by about $0.50. Revenue of $2.94 billion exceeded the $2.75 billion estimate and rose 10% from $2.68 billion in the year-ago quarter. I also checked this using Tickeron’s AI Screener to see how BHC stacks up against peers on recent performance metrics.
Performance was solid across segments. Salix revenue reached $831 million, up 16% from $716 million, led by Xifaxan growth of 16%. Bausch + Lomb contributed $1.38 billion, up 7% from $1.28 billion. Consolidated adjusted EBITDA attributable to Bausch Health climbed 32% to $1.305 billion from $986 million. Operating cash flow more than doubled to $813 million from $405 million. Management lifted full-year 2026 revenue guidance to $10.975–$11.175 billion and adjusted EBITDA guidance to $4.315–$4.415 billion, pointing to 12–14% growth.
Market Reaction and Investor Sentiment
BHC shares rose roughly 12.5% in after-hours trading on the news. The positive response reflected the clean beat on both lines, the milestone of adjusted EBITDA outside Bausch + Lomb crossing $1 billion, and the second guidance increase. Improved cash generation and the more than $500 million net debt reduction also helped address long-standing balance-sheet questions. The move suggests investors saw the quarter as confirmation of steady execution rather than a one-time event.
Forward Outlook and Key Factors to Monitor
Looking ahead, the updated targets point to continued mid-to-high single-digit revenue growth and low-double-digit adjusted EBITDA expansion. Execution in Salix and Bausch + Lomb will stay central. Xifaxan remains the key growth driver in Salix, so pricing, volume, and any regulatory developments around the product deserve attention. Currency and demand variables in the International and Solta Medical divisions can add volatility. Balance-sheet progress through strong operating cash flow will remain important for financial flexibility. From what I see, any further segment-level strategy updates, including around Bausch + Lomb, could shape the longer-term picture.
Exploring AI Tools in My Research Process
I often turn to Tickeron’s AI-powered tools when reviewing earnings movers like BHC. The AI Screener helps me quickly filter for technical patterns, fundamentals, and performance metrics across thousands of stocks, saving time when building or refining a watchlist. It has become a practical part of staying on top of developing setups without manual screening.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BHC's Stochastic Oscillator is remaining in overbought zone for 8 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BHC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
BHC broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 29, 2026. You may want to consider a long position or call options on BHC as a result. In 60 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for BHC just turned positive on October 02, 2026. Looking at past instances where BHC's MACD turned positive, the stock continued to rise in 33 of 42 cases over the following month. The odds of a continued upward trend are 79%.
BHC moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BHC crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.
Following a +1.09% 3-day Advance, the price is estimated to grow further. Considering data from situations where BHC advanced for three days, in 206 of 274 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 113 of 155 cases where BHC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-1.333) is normal, around the industry mean (8.801). P/E Ratio (-2.146) is within average values for comparable stocks, (-2.500). Projected Growth (PEG Ratio) (0.011) is also within normal values, averaging (2.152). BHC's Dividend Yield (0.634) is considerably higher than the industry average of (0.044). P/S Ratio (0.197) is also within normal values, averaging (178.797).
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. BHC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BHC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
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General Information
a manufacturer of pharmaceutical products
Industry PharmaceuticalsGeneric
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