Bausch + Lomb’s third quarter saw a positive market response, as the company posted growth across all major segments and met Wall Street’s revenue expectations. Management highlighted that strong performance in the Pharmaceuticals division—particularly the continued momentum of Miebo and Xiidra for dry eye disease—drove results. CEO Brent Saunders credited “effective selling” and successful new product introductions for the uplift, and noted that premium intraocular lens (IOL) offerings experienced a sharp recovery following last year’s recall. The team also pointed to significant gains from revitalized consumer brands like Blink and Artelac, alongside steady demand in contact lenses.
Is now the time to buy BLCO? Find out in our full research report (it’s free for active Edge members).
Bausch + Lomb (BLCO) Q3 CY2025 Highlights:
- Revenue: $1.28 billion vs analyst estimates of $1.28 billion (7.1% year-on-year growth, in line)
- Adjusted EPS: $0.18 vs analyst estimates of $0.16 (11.9% beat)
- Adjusted EBITDA: $243 million vs analyst estimates of $231.8 million (19% margin, 4.8% beat)
- The company reconfirmed its revenue guidance for the full year of $5.1 billion at the midpoint
- EBITDA guidance for the full year is $890 million at the midpoint, above analyst estimates of $872.5 million
- Operating Margin: 7.4%, up from 3.6% in the same quarter last year
- Constant Currency Revenue rose 5.5% year on year (19.3% in the same quarter last year)
- Market Capitalization: $5.31 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bausch + Lomb’s Q3 Earnings Call
- Patrick Wood (Morgan Stanley) inquired about the addition of the ‘financial excellence’ pillar and its practical implications. CEO Brent Saunders explained it focuses on disciplined execution, cost control, and better resource allocation, while CFO Osama Eldessouky stressed it sets a foundation for sustainable margin expansion.
- Joanne Wuensch (Citibank) asked about contact lens market share and competitive dynamics. Saunders responded that Bausch + Lomb is outpacing market growth due to innovation and maintaining growth in both new and legacy products, while steering clear of involvement in industry M&A speculation.
- Young Li (Jefferies) questioned the outlook for Miebo and dry eye treatments amid new competitors. Saunders and Chief Medical Officer Yehia Hashad highlighted combination therapy as a driver for future market expansion and underscored Miebo’s unique profile for evaporative dry eye.
- Lilia-Celine Lozada (JPMorgan) sought clarity on tariff risk and pricing trends in contact lenses. Saunders shared confidence in the company’s ability to offset tariffs and acknowledged some regional consumer softness, especially in China and Southeast Asia, but reaffirmed faster-than-market growth.
- David Roman (Goldman Sachs) pressed for detail on the sustainability of margin improvement and investment balance. Saunders and Eldessouky indicated that margin gains are expected to continue as products move out of launch phase, with ongoing R&D investment supporting future growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and success of new product launches in both pharmaceuticals and consumer eye care, (2) the ongoing recovery and expansion of the Surgical business following the enVista recall, and (3) management’s execution of the Vision ‘27 initiative to drive margin expansion. Monitoring the company’s ability to maintain above-market growth in the face of external risks such as tariffs and regional consumer weakness will also be key.
Bausch + Lomb currently trades at $15, down from $15.18 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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