BHC Stock Up on Q3 Earnings Beat, Salix and Solta Drive Sales

Core Insights - Bausch Health Companies Inc. (BHC) reported better-than-expected results for Q3 2025, with shares gaining 7.3% in after-market trading [1] - Adjusted earnings per share were $1.16, surpassing the Zacks Consensus Estimate of $1.07 and up from $1.12 in the previous year [1] - Total revenues reached $2.68 billion, a 7% year-over-year increase, also beating the Zacks Consensus Estimate of $2.6 billion [1] Revenue Breakdown - Revenues increased 5% organically year-over-year when excluding foreign exchange impacts of $29 million, acquisitions of $3 million, and divestitures [2] - BHC's revenues are categorized into two segments: Bausch Health and Bausch + Lomb [5] - Salix revenues totaled $716 million, up 12% year-over-year, driven by a 16% increase in Xifaxan sales [6][7] - International revenues were $286 million, down 2% year-over-year, but still exceeded estimates [7] - Solta Medical reported revenues of $140 million, a 25% increase year-over-year, beating estimates [8] - Diversified Product revenues were $258 million, down 4% year-over-year, but still surpassed estimates [9] - Bausch + Lomb revenues totaled $1.28 billion, up 7% year-over-year, although it missed estimates [10] Guidance and Outlook - The company raised its 2025 revenue outlook to a range of $10.050-$10.250 billion, up from previous guidance [14] - Excluding Bausch + Lomb, revenues are projected to be between $5.000-$5.100 billion [14] Pipeline Developments - Phase III studies in the RED-C program for rifaximin are ongoing, with top-line results expected by early 2026 [11] - The FDA granted Breakthrough Therapy Designation for Larsucosterol for treating alcohol-associated hepatitis [12] - The Clear and Brilliant Touch program for skin rejuvenation is advancing with approvals in multiple countries [13] Strategic Moves - BHC recently acquired DURECT Corporation, enhancing its R&D capabilities and expanding its therapeutic portfolio [16] - The company faces significant long-term debt obligations of $21 billion as of September 30, 2025 [17]