Bausch + Lomb Raises 2026 Outlook After Q3 EBITDA Rises 34%

Bausch + Lomb Corp. (NYSE/TSX: BLCO) raised its full-year 2026 revenue and adjusted EBITDA guidance after third-quarter sales increased across all three business segments and profitability expanded sharply. The eye-care company reported 8% constant-currency revenue growth and a 34% increase in adjusted EBITDA excluding acquired in-process research and development, supported by pharmaceuticals, surgical implantables and its dry-eye portfolio.

Revenue for the quarter ended September 30 rose 7% to $1.375 billion from $1.281 billion a year earlier. Foreign-exchange movements reduced revenue by about $6 million, resulting in constant-currency growth of 8%.

GAAP net income attributable to Bausch + Lomb was $32 million, or $0.09 per share, compared with a net loss of $28 million, or $0.08 per share, in the prior-year quarter. Operating income increased to $155 million from $95 million, while GAAP gross margin widened by 530 basis points to 60.2%.

On a non-GAAP basis, adjusted EBITDA rose to $325 million from $243 million. There was no acquired IPR&D expense in either period, leaving adjusted EBITDA excluding acquired IPR&D at the same level. The corresponding margin increased to 23.6% from 19.0%.

Adjusted net income attributable to Bausch + Lomb climbed 86% to $123 million, and adjusted earnings per share increased to $0.34 from $0.18. Adjusted gross margin expanded by 300 basis points to 64.7%. The company generated $233 million in operating cash flow and $178 million in free cash flow after $55 million of capital expenditures.

Pharmaceuticals and Implantables Lead Growth

Pharmaceuticals delivered the strongest segment growth, with revenue rising 11% to $367 million on both a reported and constant-currency basis. The company said U.S. pharmaceutical revenue increased 14%, while international pharmaceutical revenue rose 3%. Its pharmaceutical dry-eye portfolio grew 22%.

Miebo revenue increased 42% to $119 million from $84 million, while Xiidra revenue rose to $89 million from $87 million. For the first nine months of 2026, Miebo and Xiidra recorded revenue growth of 40% and 11%, respectively.

Surgical revenue advanced 9% to $234 million. Implantables were the primary driver, rising 42% on a reported basis and 40% in constant currency to $71 million. Premium intraocular lens revenue increased 70%, or 75% in constant currency, to $34 million. Premium IOLs represented 15% of total surgical revenue in the quarter, up from 9% in 2025. Surgical consumables grew 5% to $115 million, partially offset by a 13% decline in equipment revenue to $48 million.

Vision Care revenue increased 5% to $774 million, or 6% in constant currency. Contact lens and consumer revenue each grew 5% as reported and 6% in constant currency. Daily silicone hydrogel lens revenue rose 24% to $68 million, or 25% in constant currency, while Lumify revenue increased 35% to $66 million.

For the first nine months of 2026, total revenue rose 9% to $4.013 billion, with constant-currency growth of 7%. Adjusted EBITDA excluding acquired IPR&D increased 37% to $771 million, and the related margin reached 19.2%, compared with 15.2% a year earlier. On a GAAP basis, the company recorded a nine-month net loss of $53 million, narrower than the $302 million loss in the comparable 2025 period.

Full-Year Guidance Raised

Bausch + Lomb now expects 2026 revenue of $5.45 billion to $5.55 billion, up from its July forecast of $5.44 billion to $5.54 billion. The company attributed the change to a $15 million improvement in its underlying business outlook, based on third-quarter performance and expectations for the remainder of the year, partly offset by a $5 million reduction in anticipated currency benefits. It now expects about $40 million of full-year foreign-exchange tailwinds, compared with $45 million previously.

The company raised its adjusted EBITDA guidance excluding acquired IPR&D by $65 million to a range of $1.09 billion to $1.14 billion. At the midpoint, that would represent approximately 25% growth. Constant-currency revenue growth is expected to be 6.1% to 8.0%, while adjusted gross margin is projected at 62.5% to 63.0%, about 30 basis points above the prior outlook.

Other assumptions include net interest expense of approximately $365 million, R&D spending equal to about 7.5% to 8.0% of revenue, an adjusted tax rate of roughly 18% and capital expenditures of about $285 million. The midpoint of the current adjusted EBITDA outlook implies a margin of approximately 20.3%, 130 basis points above the fiscal 2026 outlook presented at the company’s investor day.

Chairman and interim Chief Executive Thomas J. Appio identified accelerating execution and profitability, meeting or exceeding the company’s three-year targets, and advancing the R&D pipeline as key priorities. Pipeline milestones include moving a dual-action dry-eye candidate into Phase 3, a planned external study of a bioactive contact lens in the first half of 2027, and expected approval and launch of Lumify NXT in the first half of 2027.

The outlook remains subject to execution and regulatory risks, foreign-exchange movements, tariffs and potential supply-chain disruption, inflation, interest rates and broader economic conditions. The company also highlighted uncertainty surrounding its proposed separation from Bausch Health Companies, including timing, approvals, market conditions, tax treatment, potential business disruption and whether the anticipated benefits will be realized. At the end of the quarter, Bausch + Lomb reported net leverage of 4.1 times, based on net debt of $4.552 billion and trailing 12-month adjusted EBITDA excluding acquired IPR&D of $1.101 billion.