Bausch + Lomb Corporation (BLCO) AI Stock Analysis
BLCO AI stock analysis summary
AI ResearchBausch + Lomb Corporation is a global eye health company operating across vision care, ophthalmic pharmaceuticals, and surgical tools. While revenue expanded to $5.10B in FY2025, the company posted a net loss of -$360.0M. The balance sheet carries $5.12B in total debt alongside $367.0M in cash and short-term investments.
- Market cap
- $5.89B
- Revenue (TTM)
- $5.32B
- P/E
- — fwd 11.4x
- 1Y return
- 11.0% S&P 500 16.8%
- Avg. target
- $19.39 17.6% vs last close
Bull case
- Revenue expanded at an 8.4% 5-year CAGR through FY2025 and reached $5.32B over the trailing twelve months.
- Analysts project current fiscal year EPS to increase 58.4% to $0.81, followed by 37.8% growth to $1.11 next year.
- The stock trades at a forward P/E of 11.4x and a PEG ratio of 0.89, both below the peer median forward P/E of 17.3x.
Bear case
- The company reported three straight fiscal years of net losses, culminating in -$360.0M in FY2025.
- Free cash flow remained negative at -$66.0M in FY2025, driven by $349.0M in capital expenditures.
- Total debt reached $5.12B as of June 30, 2026, leaving net debt at $4.75B against $367.0M in cash.
What Bausch + Lomb does
Bausch + Lomb Corporation operates internationally across three primary segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. Vision Care provides contact lenses, contact lens care products, over-the-counter eye drops, and nutritional supplements for conditions like allergies and dry eye. The Ophthalmic Pharmaceuticals segment develops and distributes proprietary and generic pharmaceuticals for ocular conditions, post-operative care, and therapeutic lenses. The Surgical division produces tools, intraocular lenses, phacoemulsification equipment, and instruments for cataract, vitreous, and retinal procedures. Headquartered in Vaughan, Canada, the company was established in 1853 and operates as a subsidiary of Bausch Health Companies Inc.
Growth and profitability
Revenue increased from $3.77B in FY2021 to $5.10B in FY2025, reflecting a 5-year revenue CAGR of 8.4%. Gross margin contracted from 61.0% in FY2021 to 54.8% in FY2025, while operating margin fell from 8.7% to 3.7% over the same period. Net income moved from $182.0M in FY2021 to -$360.0M in FY2025, marking three consecutive annual net losses. Over the trailing twelve months, revenue reached $5.32B with a profit margin of -3.2% and an operating margin of 7.8%. For the latest quarter ended June 30, 2026, quarterly revenue grew 9.1% year-over-year, while quarterly earnings declined 88.6%.
Balance sheet and cash flow
As of June 30, 2026, Bausch + Lomb held $367.0M in cash and short-term investments against $5.12B in total debt, resulting in net debt of $4.75B. The debt-to-equity ratio stood at 0.80, and the current ratio was 1.55 against shareholders' equity of $6.38B. Operating cash flow improved to $283.0M in FY2025 from -$17.0M in FY2023, but free cash flow remained negative at -$66.0M due to $349.0M in capital expenditures. Share count increased 2.0% over five years.
Valuation and performance
BLCO trades at a forward P/E of 11.4x, below the 17.3x forward P/E median of its US-listed Healthcare peers. Its price-to-sales ratio is 1.1x compared to the peer median of 4.1x, while its EV-to-EBITDA multiple of 14.8x is above the peer median of 12.0x. Over the past year, the stock returned 11.0%, trailing the 16.8% return of the S&P 500.
What analysts expect
Wall Street coverage includes 5 Strong Buy, 2 Buy, 7 Hold, and 1 Sell ratings. The mean price target of $19.39 suggests a 17.6% upside compared to the last close of $16.49. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $0.81 on revenue of $5.49B. For the next fiscal year, 14 analysts expect EPS of $1.11 on revenue of $5.82B. The company beat EPS estimates in 2 of the last 4 quarters, and the next earnings date is October 28, 2026.
Key risks and what to watch
- Gross margin compressed from 61.0% in FY2021 to 54.8% in FY2025, demonstrating ongoing margin pressure.
- Earnings declined 88.6% year-over-year in the latest quarter ended June 30, 2026, highlighting bottom-line volatility.
- The net debt burden of $4.75B creates ongoing financial exposure relative to $283.0M in FY2025 operating cash flow.
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 BLCO AI stock analysis
This page is an AI-written research summary of Bausch + Lomb Corporation (BLCO). 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: BLCO income statement, BLCO balance sheet, BLCO key metrics, BLCO analyst forecast, BLCO chart. See the BLCO stock overview for the latest quote and news.
BLCO AI stock analysis FAQ
Does Bausch + Lomb Corporation pay a dividend?
No, Bausch + Lomb Corporation does not currently pay a dividend.
What was Bausch + Lomb's revenue in the latest fiscal year?
Bausch + Lomb generated $5.10B in revenue for FY2025, up 6.5% compared to FY2024.
How much debt does Bausch + Lomb have?
As of June 30, 2026, the company held $5.12B in total debt and $367.0M in cash and short-term investments, resulting in net debt of $4.75B.
When is Bausch + Lomb's next earnings report?
The company's next earnings report is scheduled for October 28, 2026.