Bausch Health Q3 2026: Earnings Top Estimates, Debt Falls $500M
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Management cut net debt by more than $500 million in the quarter, the number that matters most against roughly $20 billion of debt on a $2.6 billion market cap. Earnings came in 42% above expectations with a raised full-year outlook, and Xifaxan grew 16% ahead of its 2027 Medicare negotiated price.
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Bausch Health reported adjusted earnings of $1.77 per share for the third quarter of 2026, exceeding expectations, with revenue of $2.94 billion also ahead of estimates and up 9.7% from a year ago.
The company cut more than $500 million of net debt in the quarter, the central risk in this investment case given roughly $20 billion of total debt obligations. CEO Thomas J. Appio called it an important milestone.
Xifaxan, the gastroenterology drug anchoring the Salix segment, grew revenue 16% in the quarter. Medicare's negotiated price for Xifaxan takes effect in 2027 under the Inflation Reduction Act, so every quarter of full-price volume until then counts.
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Operating income rose 58.8% year over year to $983 million, helped by lower intangible amortization, the absence of a prior-year acquired in-process research and development charge, and smaller litigation costs.
Management raised its full-year 2026 outlook, guiding for consolidated revenue of $10.975 billion to $11.175 billion with tariff impacts already reflected. The board also authorized a $50 million share repurchase program to offset dilution from 2027 equity award vesting.
Mentioned: BHC