Oct 28, 2026 earnings call — Raised 2026 guidance after strong quarter
Raised full-year guidance; revenue expected between $5.525 billion and $5.625 billion.
Revenue $2.9B (est $2.7B) · EPS $1.77 (est $1.25) · Next-quarter revenue outlook $5.5B–$5.6B
Key quotes
"Not surprisingly, the strength of our result in Q3 is allowing us to raise our 2026 full year guidance across all metrics for the second quarter in a row."
"This outstanding performance was primarily driven by Xifaxan which grew 16% year over year, thanks to favorable net realized pricing and continued solid demand as evidenced by total retail prescriptions excluding Medicaid which grew 1.8%."
"Building on the progress achieved during the first half of the year, this cash generation enabled us to reduce our net debt by more than $500 million."
Analyst Q&A 3
company structure and Xifaxan rebate impact
Q (Umer Raffat · Evercore): The analyst asked if the two companies might be combined more formally and what the overall direction is. He also asked JJ to translate Xifaxan's IRA impact from basis points into dollar impact on revenue and margin next year, and asked about the possibility of an interim analysis for the Phase 3 alcohol-associated hepatitis trial.
A: Management said nothing has changed from prior communications and that Bausch + Lomb has a strong foundation and talented team. JJ broke the CMS impact into two parts: the gross-to-net accrual is ‘‘in excess of $100 million,’’ and he said the implied net impact for 2027 is ‘‘around $400 million to $500 million year over year.’’
"Is that the net impact of all the puts and takes is around $400 million to $500 million year over year, which is a good order magnitude to consider when looking at the CMS impact." — Jean-Jacques Charhon (CFO)
interim analysis for Phase III study
Q (Jonathan Sadeh): Could management say whether there might be an interim analysis that could come early for the Phase 3 alcohol-associated hepatitis trial?
A: They said futility checks are possible in some situations but they do not expect futility here. Stopping early to submit is unlikely because there is only one study; it is a short, 6-month treatment, and they expect to complete enrollment and aim to submit in 2029. They are confident and do not see a need for any interim analysis.
Solta demand and Xifaxan litigation timelines
Q (Douglas Miehm · RBC): The analyst asked for more detail on Solta's organic demand in Asia Pacific excluding Shibo, sustainability of Shibo integration benefits, and North America softness. He also asked about timing for the Xifaxan summary judgment ruling and any FDA timeline on the but-for causation analysis remand.
A: Management said Solta is growing organically year-to-date by 8% and on a reported basis, including Shibo, 34%. They said China integration has gone well but the market has softened; Korea is saturated for machines though consumables are growing; the U.S. was basically flat with volume up. On litigation, they said the DC District Court directed the FDA to devise a new framework and it has not gone back to the FDA yet, and that the summary judgment hearing has occurred but there is no update at this time.
"So organically year-to-date, the total business is growing by 8%, and on a reported basis, including Shibo, 34%." — Thomas J. Appio (CEO)