Bausch + Lomb: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 28, 2026, Bausch + Lomb (NYSE:BLCO) announced that revenue grew 8% on a constant-currency basis to $1.375 billion. For long-term investors, sustained growth across pharmaceutical, surgical, and vision care businesses demonstrates broad commercial traction across diverse eye care markets. Three things management said stand out.

1. Operating Leverage Drives Profitability Faster Than Revenue Growth

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a key measure of core operating profitability, expanded as higher-margin product sales grew faster than operating expenses.

Over the last 4 quarters, we have consistently achieved strong revenue growth while expanding profitability at an even faster rate.
-- Tom Appio, Chairman of the Board and Interim Chief Executive Officer

2. Debt Reduction Moves the Balance Sheet Toward Medium Target

Operating cash flow reached $233 million in the quarter, enabling Bausch + Lomb to pay down debt and lower its net leverage ratio toward its strategic target.

Our strong performance drove net leverage down from 5.7x a year ago to 4.1x at the end of the third quarter. With substantial progress already achieved, we are increasingly confident in our ability to achieve our 3.5x target.
-- Osama A. Eldessouky, Chief Financial Officer

3. Premium Product Adoption Expands Portfolio Gross Margins

Sales of premium intraocular lenses (IOLs), artificial lenses implanted during cataract surgery, surged alongside prescription dry eye therapies, lifting the overall product mix and profit margins.

In surgical, we are also seeing continued momentum from premium IOLs, Reported growth in the quarter approached 70% with our premium offerings continuing to gain traction.
-- Tom Appio, Chairman of the Board and Interim Chief Executive Officer

Looking Ahead

Momentum continues across all three operating segments, with full-year revenue and profit targets rising. Proprietary drug formulations, high customer switching costs in vision care, and flexible lens manufacturing support future value. Management is monitoring research pipeline progress, operating expense efficiency, and debt-reduction discipline.

We are performing well. We have clear opportunities to continue driving margin expansion and create additional value and we have an impressive pipeline that can support growth well into the future.
-- Tom Appio, Chairman of the Board and Interim Chief Executive Officer

Targeted investments in next-generation lens technology reinforce long-term market position.

We will continue to prioritize innovation because it is fundamental to the long term growth of the company.
-- Tom Appio, Chairman of the Board and Interim Chief Executive Officer

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