Bausch + Lomb Corporation

Total company revenue was $1.394 billion, up 8% year over year, with about a $12 million foreign exchange tailwind. Adjusted gross margin was 62.2%, up 160 basis points, adjusted EBITDA was $246 million, up 28%, and adjusted EBITDA margin was 17.6%, up 260 basis points. Adjusted EPS, excluding acquired IPR&D, was $0.16 versus $0.07 in the prior-year quarter. Segment revenue was Vision Care $784 million (+4%), Surgical $256 million (+16%), and Pharma $354 million (+14%). Cash flow was strong, with adjusted cash flow from operations of $161 million, CapEx of $71 million, adjusted free cash flow of $90 million, and net leverage at approximately 4.7x. For 2026, management raised revenue guidance by $20 million to $5.440 billion-$5.540 billion and raised adjusted EBITDA guidance by $15 million to $1.025 billion-$1.075 billion; the midpoint implies about 19.1% adjusted EBITDA margin and about 18% year-over-year EBITDA growth. They also now expect about $45 million of currency tailwind, adjusted gross margin of approximately 62%, R&D at 7.5%-8% of revenue, interest expense of about $365 million, an adjusted tax rate of about 19%, and CapEx of about $285 million.

Brent Saunders framed the quarter as further proof that the three-year plan is working, pointing to sequential acceleration in revenue growth, EBITDA margin expansion, stronger cash flow, and lower leverage. He emphasized that the improvement is broad-based across all three segments and tied to structural changes in mix, SG&A, and operating discipline. His tone was confident and repetitive on execution, saying the company is proving it can “do what we say we’re going to do” and that momentum is building into the second half.

Sam Eldessouky said the company delivered another quarter of broad-based growth and margin expansion while continuing to invest in R&D, calling it the fourth consecutive quarter of delivery on priorities. He highlighted Q2 adjusted gross margin of 62.2%, adjusted SG&A margin improvement of about 130 basis points, adjusted R&D of $114 million, adjusted EBITDA of $246 million, and adjusted cash flow from operations of $161 million, with CapEx of $71 million and leverage at about 4.7x. He also raised full-year guidance, saying revenue is now expected at $5.440 billion-$5.540 billion and adjusted EBITDA at $1.025 billion-$1.075 billion, while maintaining roughly 62% gross margin, 7.5%-8% R&D, about $365 million of interest expense, and about $285 million of CapEx.

Analysts focused on the durability of the three-year plan, consumer demand, Surgical’s premium IOL recovery after the recall, competition in premium IOLs and dry eye, the sustainability of cash flow, and the launch path for ELIOS and enVista Beyond. Management said the recall impact is largely behind them, surgeons are increasingly comfortable with enVista and premium mix continues to rise, while contact lens growth remains balanced across geographies and products. On cash flow, management said working capital improvements and normal seasonality support the back-half outlook, and on pipeline timing they said the dual-action dry eye readout is expected in the second half and Phase III could begin in 2027 if results support it.