Bausch Health (BHC) Q2 2026 earnings summary

Executive summary

• Achieved consolidated Q2 2026 revenue of $2.85 billion, up 13% year-over-year, with all segments contributing to profit growth and a record 59% adjusted EBITDA margin.

• Adjusted EBITDA rose 28% to $1.08 billion, adjusted EPS (non-GAAP) increased 40% to $1.26, and net income was $258 million, with diluted EPS of $0.68.

• Generated $671 million in Q2 cash from operating activities, up 132% year-over-year, and $900 million for H1 2026, supporting liquidity and debt service.

• Net debt reduced by $434 million in Q2, reflecting strong cash generation and disciplined capital allocation.

• Raised full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted cash flows from operations.

Financial highlights

• Q2 2026 revenue: $2.85B (+13% YoY); six-month revenue: $5.38B (+12% YoY).

• Adjusted EBITDA reached $1.075 billion, up 28% year-over-year; adjusted gross margin was 72.9%, up 230 basis points.

• Q2 net income: $258M ($0.68/share); adjusted net income (non-GAAP): $476M; adjusted EPS (non-GAAP): $1.26.

• Cash and cash equivalents at June 30, 2026: $1.84B.

• Net debt reduced to $13.7B, with total consolidated debt at $20.74B.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $10.79–$11.04B; adjusted EBITDA guidance increased to $4.05–$4.18B; adjusted cash flows from operations guidance also raised.

• Guidance incorporates estimated impact of tariffs, macroeconomic uncertainties, and ongoing regulatory changes.

• Growth rates for revenue and adjusted EBITDA expected to be lower in H2 due to inventory accruals, loss of exclusivity for Aplenzin, and gradual Medicaid/340B erosion.

• 2027 adjusted EBITDA guidance remains at $2.7B, assuming XIFAXAN exclusivity until January 2028.

• Management expects continued compliance with debt covenants and sufficient liquidity for the next 12 months.