Bausch + Lomb’s fourth quarter showed strong revenue growth but fell short on non-GAAP profit expectations, prompting a modestly negative market reaction. Management attributed the performance to robust momentum in its dry eye portfolio, notably Miebo, and improved operating leverage through cost discipline. CEO Brenton Saunders emphasized the impact of executing their Vision 27 program, citing a shift toward higher-margin products and operational efficiency as key contributors. Saunders remarked, “The quarter reflects the impact of Vision 27, our program that we put in place at the beginning of the year, and we're shifting mix towards higher-margin products, improving pricing discipline, driving productivity across the organization and operating with a more fixed cost infrastructure.”
Is now the time to buy BLCO? Find out in our full research report (it’s free for active Edge members).
Bausch + Lomb (BLCO) Q4 CY2025 Highlights:
- Revenue: $1.41 billion vs analyst estimates of $1.38 billion (9.8% year-on-year growth, 1.5% beat)
- Adjusted EPS: $0.32 vs analyst expectations of $0.36 (10.3% miss)
- Adjusted EBITDA: $330 million vs analyst estimates of $320.7 million (23.5% margin, 2.9% beat)
- Operating Margin: 8%, up from 6.8% in the same quarter last year
- Constant Currency Revenue rose 7% year on year (11% in the same quarter last year)
- Market Capitalization: $6.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bausch + Lomb’s Q4 Earnings Call
- Patrick Wood (Morgan Stanley) asked about the composition of 2026 growth and the impact of Q4 momentum by product line. CEO Brenton Saunders emphasized disciplined execution and structural improvements in the business model as key drivers for future growth.
- Young Li (Jefferies) inquired about the competitive landscape in contact lenses, surgical products, and dry eye drugs. Saunders and Stewart described their current market positioning as strong, pointing to continuous product launches and resilient growth in China, but acknowledged increased competition ahead.
- Joanne Wuensch (Citibank) sought details on clinical data for the new bioactive contact lens material. Saunders and Yehia Hashad, Head of R&D, reported positive early results and increased confidence in the product platform, with a 2028 launch on track.
- Lei Huang (Wells Fargo) asked about expectations for Xiidra growth and margin expansion. Stewart outlined a strategy focused on better net pricing, even with slower prescription growth, while Eldessouky detailed planned improvements in gross and SG&A margins.
- Lilia-Celine Lozada (JPMorgan) requested a bridge to the 19% EBITDA margin target and details on SG&A leverage. Eldessouky explained the contributions from gross margin improvement, SG&A efficiencies, and disciplined R&D investment, emphasizing ongoing cost control initiatives.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be monitoring (1) sustained growth and profitability in the dry eye segment, particularly as Miebo and Xiidra mature; (2) the commercial uptake and clinical feedback of new product launches such as PreserVision AREDS3 and advanced contact lenses; and (3) the company’s ability to maintain operating leverage and margin gains amid competitive and tariff pressures. Execution on upcoming R&D milestones and successful expansion in international markets will also be key indicators.
Bausch + Lomb currently trades at $18.42, up from $17.73 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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