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Bausch + Lomb Corporation
(NYSE:BLCO)
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Rating:63Neutral
Price Target:
$18.00
▲(11.32% Upside)
Action:Reiterated
Date:08/06/26
BLCO scores as moderately attractive, driven primarily by improving financial trajectory (positive and strengthening operating cash flow with FCF turning positive) and a notably upbeat earnings update with raised 2026 guidance and margin expansion. This is tempered by ongoing GAAP net losses (negative ROE), meaningful leverage/interest burden, and a valuation profile that remains hard to assess favorably due to negative earnings (negative P/E). Technicals add mild support with price above key moving averages and moderate momentum.
Positive Factors
Broad-based revenue growth
Sustained, multi-segment revenue growth reflects a diversified business model across Pharmaceuticals, Surgical and Vision Care. This reduces single-market dependence, supports stable cash conversion and provides multiple organic levers (product launches, premium mix, geographic expansion) to sustain growth over 2–6 months and beyond.
Negative Factors
Elevated leverage & interest burden
High net leverage and material interest costs constrain financial flexibility and absorb operating cash flow, making the company more sensitive to slower growth or margin pressure. Servicing significant debt could limit strategic optionality, prolong deleveraging and increase refinancing exposure over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth
Sustained, multi-segment revenue growth reflects a diversified business model across Pharmaceuticals, Surgical and Vision Care. This reduces single-market dependence, supports stable cash conversion and provides multiple organic levers (product launches, premium mix, geographic expansion) to sustain growth over 2–6 months and beyond.
Read all positive factors
Bausch + Lomb Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting core strengths and areas of growth or decline within the company’s operations.
Shows how much revenue each business segment generates, highlighting core strengths and areas of growth or decline within the company’s operations.
Data provided by:
The Fly
The FlyBausch + Lomb Corporation (BLCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.09B
Dividend YieldN/A
Average Volume (3M)405.48K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth8.85%
EPS Growth37.70%
CountryUS
Employees13,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.48
Shares Outstanding357,165,250
10 Day Avg. Volume391,487
30 Day Avg. Volume405,477
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)0.94
Price to Sales (P/S)1.18
P/FCF Ratio-91.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.75Price Target Upside22.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.79
Revenue Forecast (FY)$5.49B
Bausch + Lomb Corporation Business Overview & Revenue Model
Company Description
Bausch + Lomb Corporation is a leading global eye health company. Its operations are structured across three primary segments: Vision Care/Consumer Health, Ophthalmic Pharmaceuticals, and Surgical. The Vision Care/Consumer Health division offers a...
How the Company Makes Money
BLCO generates revenue primarily by selling eye health products across three major categories: (1) Vision Care—sales of contact lenses (including daily and reusable lenses) and lens care solutions, with revenue driven by unit volume sold through e...
Bausch + Lomb Corporation Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum across revenue, margin expansion, cash generation and deleveraging. Broad-based growth across segments (Pharmaceuticals, Surgical, Vision Care), robust adjusted EBITDA growth, raised guidance and continued R&D investment were emphasized as evidence that the three-year plan is on track. Notable risks include elevated leverage and interest expense, macro/currency sensitivity (consumer demand tied to gas prices), ongoing regional disruptions (e.g., strikes), competitive dynamics in surgical and dry eye markets, and several important clinical and regulatory milestones still pending. Overall, the positives in growth, margins, cash flow and guidance upgrades substantially outweigh the outlined risks.Positive Updates
Revenue Growth and Broad-Based Performance
Total company revenue of $1.394 billion in Q2, up 8% on a constant currency basis, driven by Pharmaceuticals (+14%), Surgical (+16%) and Vision Care (+4%).
Negative Updates
Leverage and Interest Expense Remain Elevated
Net leverage at ~4.7x despite a full turn improvement; net interest expense $89 million in Q2 and company expects full-year interest expense ~ $365 million — leverage and interest remain a material balance-sheet headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Broad-Based Performance
Total company revenue of $1.394 billion in Q2, up 8% on a constant currency basis, driven by Pharmaceuticals (+14%), Surgical (+16%) and Vision Care (+4%).
Read all positive updates
Company Guidance
Bausch + Lomb raised its 2026 outlook: full‑year revenue is now guided to $5.440–$5.540 billion (up $20M, reflecting a $25M lift to the business partially offset by a $5M reduction in FX), implying ~5.8–7.7% constant‑currency growth (‑/+50 bps vs prior); full‑year adjusted EBITDA was increased to $1.025–$1.075 billion (up $15M), which equates to ~19.1% adjusted EBITDA margin at the midpoint and roughly 18% y/y EBITDA growth, with management saying EBITDA should grow nearly 3x the rate of revenue. Key assumptions include an FX tailwind of ~ $45M, adjusted gross margin of ~62%, R&D of 7.5–8.0% of revenue, interest expense ≈ $365M, an adjusted tax rate ≈19%, and CapEx ≈ $285M; net leverage was about 4.7x at Q2 (down ~1.0 turn year‑over‑year).Bausch + Lomb Corporation Financial Statement Overview
Summary
Income Statement
53
Neutral
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.32B | 5.10B | 4.79B | 4.15B | 3.77B | 3.77B |
| Gross Profit | 3.04B | 2.79B | 2.92B | 2.50B | 2.25B | 2.30B |
| EBITDA | 742.00M | 535.00M | 601.00M | 499.00M | 598.00M | 733.00M |
| Net Income | -171.00M | -360.00M | -317.00M | -260.00M | 6.00M | 182.00M |
Balance Sheet | ||||||
| Total Assets | 13.86B | 14.02B | 13.47B | 13.44B | 11.14B | 10.82B |
| Cash, Cash Equivalents and Short-Term Investments | 367.00M | 383.00M | 305.00M | 334.00M | 380.00M | 174.00M |
| Total Debt | 5.12B | 5.37B | 4.94B | 4.68B | 2.55B | 140.00M |
| Total Liabilities | 7.42B | 7.50B | 6.92B | 6.52B | 4.04B | 1.42B |
| Stockholders Equity | 6.38B | 6.45B | 6.47B | 6.85B | 7.03B | 9.33B |
Cash Flow | ||||||
| Free Cash Flow | 140.33M | -66.00M | -59.00M | -198.00M | 170.00M | 680.00M |
| Operating Cash Flow | 458.39M | 283.00M | 232.00M | -17.00M | 345.00M | 873.00M |
| Investing Cash Flow | -463.16M | -455.00M | -412.00M | -2.11B | -215.00M | -214.00M |
| Financing Cash Flow | 116.25M | 225.00M | 178.00M | 2.08B | 81.00M | -712.00M |
Bausch + Lomb Corporation Technical Analysis
Positive
16.17
Price Trends
16.23
Positive
16.12
Positive
16.43
Positive
Market Momentum
0.21
Negative
58.81
Neutral
78.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Positive. The current price of 16.17 is below the 20-day moving average (MA) of 16.65, below the 50-day MA of 16.23, and below the 200-day MA of 16.43, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLCO.
Bausch + Lomb Corporation Risk Analysis
Bausch + Lomb Corporation disclosed 53 risk factors in its most recent earnings report. Bausch + Lomb Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bausch + Lomb Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.33B | 37.54 | 9.07% | ― | 10.51% | 20.67% | |
69 Neutral | $9.38B | 238.32 | 1.98% | ― | 16.49% | ― | |
68 Neutral | $5.79B | 38.73 | 8.94% | 0.32% | 14.73% | 7.43% | |
63 Neutral | $6.09B | -36.49 | -2.67% | ― | 8.85% | 37.70% | |
58 Neutral | $2.21B | -4.03 | -39.81% | 4.95% | -0.76% | 42.34% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $14.78B | 65.03 | 2.84% | ― | 6.09% | -42.65% |
* Healthcare Sector Average
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Bausch + Lomb Corporation Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Bausch + Lomb Overhauls Board, Reaffirms 2026 Outlook
Positive
Aug 6, 2026
On August 6, 2026, Bausch + Lomb announced a board overhaul effective August 5, 2026, installing four new directors at the request of controlling shareholder Bausch Health Companies, which owns about 87% of the eye care group. The newcomers, inclu...
Executive/Board ChangesShareholder Meetings
Bausch + Lomb Shareholders Back Board and Executive Pay
Positive
May 20, 2026
At its Annual Meeting of Shareholders held on May 20, 2026, Bausch + Lomb Corporation’s investors elected a full slate of directors, including Eduardo Alfonso, Nathalie Bernier and Brenton L. Saunders, to serve on the board until the close o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.