Key Takeaways:
Bausch + Lomb Corp. reported second-quarter revenue of $1.39 billion, up 8% on a constant-currency basis, and raised its full-year outlook as growth accelerated across its pharmaceutical, surgical and vision care segments.
"The results reflect broad-based momentum across our three businesses, with margin expansion now translating into stronger cash generation and deleveraging," Chief Financial Officer Sam Eldessouky said on the company's earnings call.
Adjusted earnings per share came in at $0.16, in line with the Zacks consensus estimate, compared with $0.07 a year earlier. Adjusted EBITDA rose 28% to $246 million, with margin expanding 260 basis points to 17.6%. Revenue exceeded the Zacks consensus estimate by 1.92%.
The company raised its 2026 revenue guidance by $20 million to a range of $5.44 billion to $5.54 billion, implying constant-currency growth of about 5.8% to 7.7%. Adjusted EBITDA guidance increased by $15 million to $1.025 billion to $1.075 billion, implying a margin of approximately 19.1% at the midpoint. Management targets net leverage of 3.5 times or better by the end of 2028, down from approximately 4.7 times at quarter-end.
Pharmaceutical revenue jumps 14% on dry-eye franchise strength
Pharmaceutical revenue rose 14% on a constant-currency basis to $354 million, led by the dry-eye portfolio. MIEBO revenue surged 44% to $91 million after the addition of Humana Medicare coverage expanded the brand's Medicare access to 88% from 71%. XIIDRA revenue increased 6% to $87 million. Chairman and Chief Executive Officer Brent Saunders said MIEBO is on track to become the branded industry leader in dry-eye treatment, though the company did not provide a specific timeline.
The company expects a top-line data readout for its dual-action dry-eye candidate near the end of the third quarter. If Phase 2 results support advancement, Bausch + Lomb plans to begin Phase 3 studies in 2027.
Surgical revenue climbs 16% as premium IOL mix shifts higher
Surgical revenue increased 16% year over year to $256 million, with implantables growing 64% and premium intraocular lens revenue jumping 175%. Premium eyewear represented 13% of surgical revenue in the second quarter, up from 9% in 2025 and 6% in 2023, according to President of Surgical Luc Bonnefoy.
The company filed an FDA submission for ELIOS, its implant-free minimally invasive glaucoma surgery excimer laser, and expects approval in the second half of 2026. Clinical-trial results over two years showed more than 80% of patients treated with ELIOS were drop-free, Chief Medical Officer Yehia Hashad said. Bausch + Lomb also remains on track to submit enVista Beyond by the end of 2026, with approval expected by the end of 2027.
Vision care grows 4% as contact lens demand strengthens
Vision care revenue rose 4% to $784 million, with contact lens revenue up 5% and consumer revenue up 3%. Daily silicone hydrogel products grew 16%, Biotrue rose 13% and ULTRA increased 9%. Consumer demand strengthened during the quarter and continued into July, Saunders said, noting that retail consumption trends have tracked closely with gasoline prices.
Adjusted gross margin improved 160 basis points to 62.2%, supported by a higher mix of premium products and productivity initiatives. Adjusted cash flow from operations totaled $161 million in the quarter, compared with $45 million in the first quarter, while adjusted free cash flow reached $90 million after $71 million in capital expenditures.
The guidance raise signals management expects operating momentum to continue as premium product mix and cost initiatives drive margin expansion. Investors will watch the third-quarter earnings call for MIEBO market share data and the ELIOS FDA decision timeline.
This article is for informational purposes only and does not constitute investment advice.
