Bausch Health Companies Inc. (BHC) AI Stock Analysis
BHC AI stock analysis summary
AI ResearchBausch Health Companies Inc. (BHC) is a global pharmaceutical company operating across eye health, gastroenterology, dermatology, and diversified therapeutics. In FY2025, revenue reached $10.27B with net income turning positive at $157.0M. The company maintains a heavy debt burden of $20.78B as of June 30, 2026, alongside negative shareholders equity of -$1.77B.
- Market cap
- $2.36B
- Revenue (TTM)
- $10.85B
- P/E
- — fwd 1.3x
- 1Y return
- 4.8% S&P 500 16.8%
- Avg. target
- $7.50 19.0% vs last close
Bull case
- FY2025 net income turned positive at $157.0M, supported by operating margin expansion to 21.3%.
- Revenue expanded 12.7% year-over-year in the quarter ended June 30, 2026, alongside 70.4% quarterly earnings growth.
- Annual free cash flow remained robust at $1.00B in FY2025 on operating cash flow of $1.40B.
Bear case
- Total debt stood at $20.78B as of June 30, 2026, resulting in a net debt load of $18.95B.
- Shareholders equity remains negative at -$1.77B as of June 30, 2026.
- The stock has underperformed the broader market significantly, falling 77.9% over 5 years compared to an 83.0% gain for the S&P 500 (SPY).
What Bausch Health does
Headquartered in Laval, Canada, Bausch Health Companies Inc., formerly known as Valeant Pharmaceuticals International, Inc., develops and manufactures pharmaceuticals and healthcare products across five segments. The Bausch + Lomb segment provides vision care, surgical, and ophthalmic pharmaceuticals worldwide. Salix specializes in gastroenterology treatments in the United States. International Rx distributes pharmaceuticals and Solta medical devices across Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East. Ortho Dermatologics delivers dermatological solutions in the U.S. and aesthetic devices internationally. Diversified Products covers neurology, generics, and dental products in the United States.
Growth and profitability
Annual revenue increased from $8.43B in FY2021 to $10.27B in FY2025, generating a 5-year revenue CAGR of 5.0%. Operating margin expanded steadily from 5.3% in FY2021 to 21.3% in FY2025. After recording net losses of -$948.0M in FY2021, -$225.0M in FY2022, -$592.0M in FY2023, and -$46.0M in FY2024, net income reached $157.0M in FY2025. Over the trailing twelve months, revenue totaled $10.85B with an operating margin of 27.2% and a profit margin of -10.1%. For the quarter ended June 30, 2026, revenue increased 12.7% year-over-year while quarterly earnings grew 70.4%.
Balance sheet and cash flow
As of June 30, 2026, Bausch Health held $1.82B in cash and short-term investments against total debt of $20.78B, leaving net debt at $18.95B. The company had total assets of $24.79B and negative shareholders equity of -$1.77B, with a current ratio of 1.44. In FY2025, operating cash flow was $1.40B and capital expenditures were $397.0M, resulting in free cash flow of $1.00B. Over 5 years, share count increased 3.8%.
Valuation and performance
Bausch Health trades at a forward P/E of 1.3x, well below the 17.3x median of its US-listed Healthcare peers. Its price-to-sales ratio is 0.2x compared to the peer median of 4.1x, and its EV/EBITDA stands at 10.3x versus the peer median of 12.0x. The company holds an enterprise value of $21.09B against a market cap of $2.36B. Over the past year, the stock gained 4.8%, trailing the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock fell 77.9% while the benchmark gained 83.0%.
What analysts expect
Wall Street sentiment is neutral, with 7 Hold ratings and zero Buy or Sell recommendations. The mean price target is $7.50, representing 19.0% upside from the last close of $6.30 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.52 on revenue of $10.92B. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is October 28, 2026.
Key risks and what to watch
- Net debt of $18.95B creates substantial financial leverage relative to a market capitalization of $2.36B.
- Negative shareholders equity of -$1.77B reflects a depleted book value.
- Analysts project next fiscal year EPS to decline 5.0% to $4.29 on revenue growth of 0.1%.
- Trailing twelve-month profit margin is -10.1%, resulting in a net loss per share of -$2.95.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BHC AI stock analysis
This page is an AI-written research summary of Bausch Health Companies Inc. (BHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BHC income statement, BHC balance sheet, BHC key metrics, BHC analyst forecast, BHC chart. See the BHC stock overview for the latest quote and news.
BHC AI stock analysis FAQ
What are Bausch Health's core business segments?
Bausch Health operates across five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products.
How much debt does Bausch Health have on its balance sheet?
As of June 30, 2026, Bausch Health carried $20.78B in total debt and $1.82B in cash and short-term investments, resulting in net debt of $18.95B.
What are Wall Street analysts forecasting for BHC?
Analysts project FY2026 revenue of $10.92B and EPS of $4.52, with a mean price target of $7.50 across 7 Hold ratings.
How did Bausch Health perform in its latest reported quarter?
For the quarter ended June 30, 2026, revenue increased 12.7% year-over-year while quarterly earnings grew 70.4%.