Bausch + Lomb stock jumped about 5% to roughly $17, even though the company is still reporting quarterly losses. What moved the market was not the bottom line; it was a cleaner income statement and a sharper focus on cash in its core eye health business.

Quarterly revenue reached about $1.4 billion, and adjusted earnings before interest, taxes, depreciation and amortization improved, with margins thickening against a history of losses over the past year. For long-term investors, the focus is now on whether this margin trend and cash generation can hold in the coming years.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$1.394b vs. US$1.278b (revenue increased)
• Net Income or Loss (Q2 2026 vs. Q2 2025): loss of US$14m vs. loss of US$62m (loss narrowed)
• Basic EPS (Q2 2026 vs. Q2 2025): loss of US$0.04 per share vs. loss of US$0.18 per share (per share loss narrowed)
• Adjusted EBITDA Margin (Q2 2026 vs. Q2 2025): 17.6% compared with a prior year margin that was lower by roughly 1.5 to 2.6 percentage points (margin improved)

If you prefer clear charts to scrolling through pages of earnings tables and footnotes, you can view Bausch + Lomb's complete financial picture, including its valuation breakdown, in an easy-to-read visual format through the company report for Bausch + Lomb.

Margins, Dry Eye, Surgical Mix Support Bull Case

Bulls argue Bausch + Lomb can turn dry eye leadership, premium Surgical mix and the Vision 27 program into sustained margin and cash flow gains. Q2 moves this thesis forward. Pharma revenue grew 14% in constant currency, with Miebo at US$91m and Xiidra at US$87m and clear prescription momentum in dry eye. Surgical revenue rose 16% in constant currency, while premium IOLs increased sharply and premium products reached 13% of Surgical revenue compared with 6% in 2023. Group adjusted EBITDA margin reached 17.6% and management raised full year guidance, targeting adjusted EBITDA growth close to 3x revenue growth in 2026. Adjusted free cash flow of US$90m and a roughly one turn reduction in net leverage to about 4.7x show early progress on the deleveraging part of the story.

Ongoing Losses, Capital Intensity Keep Bear Case Alive

The bear story focuses on persistent losses, high leverage and heavy investment needs. Q2 does not knock this down. Bausch + Lomb still reported a quarterly net loss of US$14m and basic EPS of a US$0.04 loss, even with stronger adjusted EBITDA. Interest expense guidance of about US$365m and net leverage near 4.7x underline that debt remains a central constraint. CapEx is guided to roughly US$285m for 2026, which keeps capital intensity elevated relative to free cash flow of US$90m this quarter. Pipeline setbacks, such as discontinuation of the BL1107 glaucoma drop after a failed Phase 2, show that R&D breadth does not guarantee smooth progress. The modest FX tailwind trimmed in guidance also reminds investors that some support is macro driven rather than purely operational.

Reveal where the surface looks calm, but the models start to disagree on Bausch + Lomb's next inflection point by accessing the multi year revenue, margin and cash flow analyst estimates for Bausch + Lomb.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.