Oct 28, 2026 earnings call — Raised guidance and expanding profitability
Company raised full-year revenue guidance by $10 million to a range of $5.450 billion to $5.550 billion.
Revenue $1.4B (est $1.4B) · EPS $0.34 (est $0.21) · Next-quarter revenue outlook $5.5B–$5.5B
Key quotes
"In the third quarter, we grew constant currency revenue by 8%, increased adjusted EBITDA by 34%, and expanded adjusted EBITDA margin to 23.6%."
"Miebo remained a standout performer with revenue increasing 42% to $119 million."
"Third, we will continue advancing our pipeline and investing in innovation."
Analyst Q&A 8
why leadership and board changed
Q (Patrick Wood · UBS): He asked why management and the board chose a leadership and board change now, since results are strong and strategy appears to be working.
A: They said the change was a mutual decision between Brenton and the board as the company enters its next growth phase. Management declined to discuss details beyond the press release and 8-K. They said the near-term focus will be on operational excellence and the R&D pipeline.
"I think that the way we need to look at it is, Brenton and the board mutually agreed on this leadership transition." — Tom Appio (CEO·CHAIR)
what Tom will focus on and time split
Q (Young Li · Jefferies): He asked what Tom will do differently, especially on profitability, and how Tom will split time between BHC and Velco.
A: Tom said splitting time should not be an issue and he will drive VISION 2027 to meet or exceed the targets, focus on customers and patients, and allocate R&D resources to get key projects to completion. He emphasized profitable growth, improving margins, driving SG&A efficiencies, and capital allocation decisions including reducing debt and accretive M&A. Osama said their priority is to reach 3.5x leverage and that hitting 3.5x is achievable while still investing with good ROI.
"I think our focus still at the 3.5x, and I think we make that 3.5x very achievable as we plan forward." — Osama A. Eldessouky (CFO)
what drove the EBITDA beat and path to 23%
Q (Leigh · Wells Fargo): He asked what key drivers caused the Q3 EBITDA beat and the guidance raise, and how to reach the 23% EBITDA margin target by 2028 (and whether there is upside).
A: Osama said the quarter beat started with strong top-line execution (8% constant currency growth) and notable gross-margin improvement. He noted a onetime tariff benefit of about 14 million, roughly a 100-basis-point impact, and said excluding the tariff gross margin was roughly about 63.6% versus 61.7% last year. He also said SG&A actions drove roughly 150 basis points this year and they expect to continue driving another 200-basis-point improvement over the next couple years; longer-term margin discussion will be revisited with 2027 guidance.
"When you look excluding the tariff, we are saying roughly about 63.6% gross margin." — Osama A. Eldessouky (CFO)
contact lens market and competition
Q (Anthony · Citi): He asked for more detail on the contact lens market in the U.S. and outside the U.S., and about competition given U.S. up 9% and OUS up 4%.
A: Tom said contact lenses are a durable, underappreciated business with a broad portfolio from FRP to daily SiHy (Ultra 1 Day and Infuse) and many fits (spherical, toric, multifocal) that give runway to grow globally; he noted U.S. growth was 9% and international was 4%. Osama added daily SiHy grew 25% this quarter and FRP grew about 17%, showing sustained momentum, and highlighted Project Halo as a potential game changer that can run on existing equipment to limit capital needs and start at an attractive cost per unit. Yehia said Project Halo is progressing with internal insertion and tear dynamics studies and packaging work, and they will not start the next external study until they are confident in design and packaging; progress is on track.
"The 1 thing I maybe take a step back and just remind you, like, we are seeing, for example, a daily SiHy growing at 25% this quarter." — Osama A. Eldessouky (CFO)
surgical equipment and consumables trends
Q (Henry · JPMorgan): He asked about the softness in Surgical during the quarter, particularly on capital equipment, and what the market showed.
A: Tom said the equipment dynamic reflected a strategy of placing equipment versus recognizing revenue, while the company focuses on premium IOLs and consumables. Osama said placements expand the installed base and drive recurring consumable revenue; consumables grew 5% in the quarter and surgical gross margin was up about 800 basis points, reflecting the strategy.
"And you saw that really play in the quarter with 5% growth, and consumables is the largest part of our surgical business." — Osama A. Eldessouky (CFO)
R&D pipeline and dry AMD/dry eye updates
Q (Kieran Ryan · Deutsche Bank): He asked for pipeline highlights and any updates on the dry eye and the dry AMD (earlier intervention oral) programs.
A: Tom said innovation is critical and he will review the R&D pipeline in detail. Yehia gave specifics: tonabersat is an orally administered once-daily small molecule that inhibits pathological opening of connexin 43 hemichannels; the FDA meeting was encouraging and they were asked to run a PK safety study, which they plan to start at the beginning of next year. He also said Ilios is under FDA review and on track for potential approval by year-end if no issues, an EDOF presubmission meeting is planned mid-December, the Halo myopia study in the U.S. is planned to start in Q4, and Phase III planning for dual dry-eye products is underway with ocular surface pain post-PRK results expected soon.
"This is actually an orally administered once daily small molecule that inhibits pathological opening of the connexin 43 These are hemichannels existing and once it open pathologically, it release a lot of inflammatory mediators." — Yehia Hashad
Miebo growth source and gross-to-net
Q (Daniel Clark · Leerink): He asked whether Miebo's strong performance was driven by volume or by changes in gross-to-net, and what to expect into Q4 and next year.
A: Osama said the Miebo strength is coming from volume, with TRx averaging roughly about 37 thousand TRx. He said gross-to-net structure has not changed for 2026 and remains around the mid seventies as they plan Q4 and the full year.
"We are averaging roughly about 37 thousand TRx." — Osama A. Eldessouky (CFO)
stay public or rejoin parent company
Q (Douglas Miehm · RBC Capital): He asked whether it is best for the company to remain public or become part of the parent again in the future.
A: Tom said his focus as interim CEO is to drive performance and execute Vision 27: grow the top line, expand gross margin, manage expenses, invest in R&D, and pursue M&A to fill gaps if accretive. He said executing on that plan is what is best for Bausch & Lomb shareholders, and he is focused on performance in his new role.
"What I would say is this is, you know, my focus right now as interim CEO is to drive performance, and I laid that out before in previous question of what my focus is going to be." — Tom Appio (CEO·CHAIR)