Bausch Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated reported revenues were $2.94 billion, an increase of 10% year-over-year (YoY) compared to $2.68 billion in Q3 2025; organic revenue growth was 8%.
• GAAP net income attributable to Bausch Health was $436 million, compared to $179 million in Q3 2025.
• GAAP earnings per diluted share were $1.15, compared to $0.48 in the prior year period.
• Adjusted earnings per diluted share were $1.77, an increase of 53% compared to $1.16 in Q3 2025.
• Consolidated adjusted EBITDA attributable to Bausch Health was $1,305 million, up 32% YoY from $986 million.
• Cash provided by operating activities was $813 million, a 101% increase from $405 million in Q3 2025.
• Adjusted cash flows from operations were $539 million.
• Consolidated operating income was $983 million, up from $619 million in Q3 2025.
• Consolidated adjusted net income attributable to Bausch Health was $673 million, up from $434 million in Q3 2025.
• Cash and cash equivalents increased to $2,485 million as of September 30, 2026, from $1,309 million as of December 31, 2025.
• Total long-term debt and other, net of premiums, discounts, and issuance costs, was $20,168 million as of September 30, 2026, compared to $20,232 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company raised full-year 2026 guidance for Revenue, Adjusted EBITDA, and Adjusted Cash Flows from Operations.
• Full-year 2026 Revenue guidance is $10.975 billion to $11.175 billion (7% to 9% growth vs. prior year).
• Full-year 2026 Adjusted EBITDA guidance is $4.315 billion to $4.415 billion (12% to 14% growth vs. prior year).
• Full-year 2026 Adjusted Cash Flows from Operations guidance is $1.600 billion to $1.675 billion.
• Bausch Health (excluding Bausch + Lomb) raised guidance for Revenue ($5.525 billion to $5.625 billion), Adjusted EBITDA ($3.225 billion to $3.275 billion), and Adjusted Cash Flows from Operations ($1.600 billion to $1.675 billion).
• Bausch + Lomb guidance for Revenue is $5.450 billion to $5.550 billion and Adjusted EBITDA is $1.090 billion to $1.140 billion.
• Guidance includes estimated impacts of applicable tariffs as of the release date.

Business Segments and Product Lines:

• Salix Segment: Revenues were $831 million, up 16% YoY (14% organic), driven by 16% revenue growth in Xifaxan®.
• International Segment: Revenues were $299 million, up 5% YoY (4% organic), led by Canada.
• Solta Medical Segment: Revenues were $165 million, up 18% YoY; organic revenue decreased 4% excluding a $29 million acquisition impact and $2 million favorable foreign exchange.
• Diversified Segment: Revenues were $271 million, up 5% YoY (5% organic), driven by double-digit growth in Dermatology.
• Bausch + Lomb Segment: Revenues were $1.375 billion, up 7% YoY (7% organic), excluding $8 million in acquisitions and $2 million in divestitures.
• Bausch Health (excl. B+L): Revenues were $1.566 billion, up 12% YoY (8% organic).
• The Company delivered its fourteenth consecutive quarter of YoY Revenue and Adjusted EBITDA growth for Bausch Health (excluding Bausch + Lomb).

Market and Competitive Landscape:

• The Company exited the quarter with strong financial momentum and revenue/earnings growth across multiple segments.
• Major refinancing initiatives in the prior twelve months materially improved the debt maturity profile.
• The Company remains focused on evaluating options to unlock shareholder value, including maximizing the value of Bausch Health and Bausch + Lomb assets.

Risks and Challenges:

• Uncertainty regarding the impact of tariffs, retaliatory tariffs, and other trade protectionist measures.
• Potential impacts of the Inflation Reduction Act and negotiated prices for Xifaxan® expected to become effective in 2027.
• Risks related to product quality matters, manufacturing facility compliance, and supply chain stability.
• Litigation, regulatory proceedings, and investigations regarding legacy distribution, marketing, pricing, and accounting practices.
• The ability to execute business strategies, commercialize pipeline products, and achieve expected revenues and margins.
• The potential separation of the eye health business (Bausch + Lomb) and associated costs.

Management Commentary and Tone:

• Thomas J. Appio, CEO, stated the quarter marked a milestone with quarterly Adjusted EBITDA (excluding Bausch + Lomb) exceeding $1 billion for the first time.
• Management expressed confidence to raise full-year 2026 guidance, citing disciplined execution and healthy cash generation.
• The Company generated more than $500 million of net debt reduction during the quarter.
• Management remains focused on operational excellence, sustainable growth, and long-term value creation.

Other Key Points:

• The Board of Directors authorized a $50 million share repurchase program to offset dilution from anticipated management equity award vesting in 2027.
• The Company achieved a 14% organic revenue growth in the Salix segment.
• Solta Medical acquired a full-service distributor in China, contributing $29 million to reported revenue growth.
• The Company reported $581 million in Cash Provided by Operating Activities for Bausch Health (excluding Bausch + Lomb).
• Adjusted EBITDA excluding Bausch + Lomb exceeded $1 billion for the first time.