Abstract

Bausch + Lomb Corp. will report fourth-quarter 2025 results on February 18, 2026 Pre-Market; this preview summarizes last quarter’s baseline, current-quarter forecasts for revenue, gross margin, net margin, and adjusted EPS with year-over-year context, and compiles institutional commentary since January 1, 2026.

Market Forecast

Consensus tracking indicates that Bausch + Lomb Corp.’s current quarter revenue is projected at $1.38 billion, implying 9.79% year-over-year growth, with estimated EBIT of $246.97 million and adjusted EPS of $0.34, corresponding to forecast year-over-year growth rates of 26.83% for EBIT and 43.74% for EPS; the year-over-year growth ratios are expressed as decimals converted to percentages per convention. While margin forecasts by itemized line are limited, directionally the market expects modest gross-margin improvement alongside an expansion in net profitability from a low base, consistent with the EBIT and EPS trajectories. The main business is expected to show steady growth led by equipment and OTC medicines, and the company’s prescription pharmaceuticals franchise appears positioned to deliver incremental operating leverage. The most promising segment is equipment, which generated $484.00 million last quarter; ongoing product refresh and mix shift suggest positive year-over-year momentum.

Last Quarter Review

In the previous quarter, Bausch + Lomb Corp. delivered revenue of $1.28 billion, a gross profit margin of 60.19%, GAAP net loss attributable to the parent of $28.00 million, a net margin of -2.19%, and adjusted EPS of $0.18, with year-over-year growth of 7.11% for revenue, 13.84% for EBIT, and 5.88% for adjusted EPS. Quarter-on-quarter, net profit improved with a growth rate of 54.84% from the prior period’s level, reflecting operational efficiency gains and disciplined expense management. The main business mix included $484.00 million from equipment, $454.00 million from OTC medicines, $280.00 million from prescription pharmaceuticals, $59.00 million from branded and other generics, and $4.00 million from other categories.

Current Quarter Outlook (with major analytical insights)

Main business trajectory and revenue cadence

Bausch + Lomb Corp.’s core product engine spans equipment, OTC medicines, and prescription pharmaceuticals, each contributing to a diversified revenue base that has supported mid‑single to high‑single digit topline expansion. Entering the fourth quarter of 2025, the company’s revenue guidance proxies indicate $1.38 billion, which corresponds to 9.79% year-over-year growth and sits above the $1.28 billion delivered in the prior quarter. The sequential uplift aligns with seasonal patterns in eye‑care product demand and the company’s shipment cadence. Given a last reported gross margin of 60.19%, even a limited improvement in product mix can translate into noticeable operating leverage, which is echoed by the 26.83% EBIT growth forecast. The reported net margin last quarter was -2.19%, largely reflecting below‑the‑line and non‑cash items; however, a stronger EBIT profile alongside stable gross margin could push net profitability closer to break‑even or modestly positive in the quarter under preview if one‑time items abate. Adjusted EPS is projected at $0.34, up 43.74% year over year, which implies continued traction in operating execution relative to the comparable period.

Most promising growth pocket and margin sensitivity

Within the portfolio, equipment generated $484.00 million last quarter, the largest single contributor, and its scale offers leverage as fixed manufacturing and service costs are absorbed across a broader revenue base. The category’s growth prospects benefit from product innovation cycles and replacement demand across surgical platforms and diagnostics, which typically carry attractive contribution margins that are supportive of group EBIT expansion. A 60.19% gross margin baseline suggests that even incremental mix improvement toward higher‑margin equipment and prescription pharmaceuticals can amplify bottom‑line performance, consistent with the projected EPS growth of 43.74%. Conversely, should the mix skew toward lower‑margin OTC products, the gross‑margin trajectory could flatten, although the breadth of the portfolio helps buffer volatility. Taking the 26.83% forecast EBIT increase as a marker, the implied operating margin tailwind is meaningful even under conservative cost assumptions.

Stock‑price drivers to watch into the print

Earnings sensitivity in this window is likely to revolve around three axes: delivery against the $1.38 billion revenue projection, confirmation of gross-margin stability above the 60% handle, and the magnitude of adjusted EPS conversion relative to the $0.34 estimate. Upside to revenue would likely be read through equipment orders and OTC sell‑through, where timing effects can influence quarter‑to‑quarter patterns, while downside could stem from channel inventory normalization. Margin commentary will be scrutinized given last quarter’s -2.19% net margin; investors will look for signals that one‑time factors are diminishing and that operating expense growth remains below gross profit growth. The EPS bridge—from last quarter’s $0.18 to an estimated $0.34—implies improved operating leverage; achieving this without outsized below‑the‑line support would strengthen quality-of-earnings perceptions and may recalibrate sentiment.

Analyst Opinions

Institutional commentary over the recent period skews bullish, with a majority of previews highlighting improving operating leverage and a favorable year-over-year setup supported by the 9.79% revenue growth estimate and a projected 26.83% increase in EBIT. Analysts emphasize that the diversified product base reduces execution risk around any single category, and the expected EPS of $0.34 indicates better earnings power versus the prior-year quarter. Representative views from well-followed research outlets note that stability in gross margin near 60% is a constructive signal and that equipment momentum is an identifiable driver for upside variance, while prescription pharmaceuticals can add incremental leverage. The minority of cautious views center on the persistence of non‑operating headwinds that recently pressured the -2.19% GAAP net margin, but consensus framing suggests that these factors are manageable if operating trends track current forecasts. Overall, the majority opinion anticipates a clean progression in revenue and profitability metrics, with watch-points concentrated on mix and expense discipline.