Bausch Health Raises Guidance as Growth Accelerates for Third Straight Quarter
Bausch Health Companies posted 13% revenue growth in the second quarter, its fastest pace in a year, and raised full-year guidance for the first time since 2025.
Bausch Health Companies (BHC) reported second-quarter revenue growth of 13%, up from 12% in the first quarter and 9% in the fourth quarter of 2024, marking a third consecutive quarter of acceleration. Revenue rose to $2.85 billion, with organic growth climbing to 11% from 7% in the prior quarter.
The quarter also closed the door on a period shadowed by a large non-cash charge. Bausch Health swung to $258 million in net income attributable to the company from a $1,423 million net loss in the first quarter, when a $1,426 million goodwill impairment weighed on results. The second-quarter figure also topped the $148 million the company earned a year earlier. Diluted earnings per share moved to $0.68 from a first-quarter loss of $(3.82), up 70% from $0.40 in the prior-year period.
Adjusted diluted earnings per share, which strips out the impairment and other one-time items, grew 40% year-over-year to $1.26 from $0.90, an acceleration from the 32% growth reported in the first quarter. Adjusted EBITDA attributable to Bausch Health rose 28% to $1,075 million from $842 million, building on 27% growth in the prior quarter.
Salix, the company's gastrointestinal drug segment, drove much of the improvement. Salix revenue grew 21% organically, up from 18% in the first quarter, with Xifaxan sales accelerating to 26% growth from 21%. The Bausch + Lomb segment grew 8% organically, up from 6%, while the International segment turned around a roughly flat first quarter to post 5% organic growth as a Canada loss-of-exclusivity drag eased.
Not every segment moved in the same direction. Solta Medical's organic growth slowed to 12% from 19% even as reported growth remained elevated at 38%, reflecting a larger contribution from an acquired China distributor business. The Diversified segment improved to flat organic revenue from a 10% decline in the first quarter, as strength in Neuroscience offset continued softness in Dermatology, Generics and Dentistry.
Bausch Health's ex-B+L business, tracked separately by the company, extended its streak of year-over-year revenue growth to a thirteenth straight quarter, with organic growth accelerating to 16% from 14%.
Cash generation strengthened alongside earnings. Operating cash flow rose 132% year-over-year to $671 million, its strongest quarterly cash performance since the fourth quarter of 2024. Cash and equivalents climbed to $1,825 million as of June 30, 2026, up $516 million from $1,309 million at the end of 2025. Consolidated operating income rose $296 million year-over-year to $740 million, driven by results at Salix, Bausch + Lomb and Solta Medical.
Bausch Health raised its full-year 2026 guidance, issuing specific revenue and profitability ranges after having only reaffirmed its outlook qualitatively in the first quarter. The company now expects consolidated revenue of $10.79 billion to $11.04 billion, representing 4% to 6% growth, and Adjusted EBITDA of $4.05 billion to $4.175 billion, representing 8% to 11% growth.
The raise follows a debt reduction, one of its largest since a 2022 refinancing, part of a broader effort that included a $1.7 billion debt exchange in the fourth quarter of 2025 and $9.6 billion in total refinancing activity over 2025 aimed at extending the company's debt maturity profile.