Bausch + Lomb Corp (NYSE:BLCO) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance that has elicited a cautious initial response from investors. The eye health company surpassed revenue expectations but fell short on profitability, while providing forward guidance that appears to align with, or modestly exceed, current analyst projections for the coming year.
Revenue Performance vs. Estimates
The company’s top-line growth in the fourth quarter was a clear positive. Bausch + Lomb reported revenue of $1.405 billion, which represents a 10% increase year-over-year on a reported basis, or 7% on a constant currency basis. This figure came in slightly above the analyst consensus estimate of approximately $1.409 billion. For the full year 2025, the company generated $5.101 billion in revenue, marking 6% reported growth.
The quarterly strength was broad-based across its three core segments:
- Vision Care: Revenue of $778 million, up 8% reported (5% constant currency), driven by contact lenses and consumer franchises like LUMIFY®.
- Surgical: Revenue of $249 million, up 8% reported (3% constant currency), supported by premium intraocular lenses (IOLs).
- Pharmaceuticals: Revenue of $378 million, up 16% reported (14% constant currency), fueled significantly by the dry eye treatment MIEBO®, which generated $112 million in sales for the quarter.
Earnings Per Share vs. Estimates
While revenue was a beat, the company’s bottom-line result, as measured by adjusted earnings per share (EPS), missed Wall Street’s target. Bausch + Lomb reported adjusted EPS of $0.32 for Q4 2025. This fell short of the analyst consensus estimate of $0.3586. The discrepancy highlights the cost pressures and investments the company is navigating.
Key factors impacting profitability included:
- Increased selling, advertising, and promotion costs, particularly related to MIEBO®.
- A one-time non-cash share-based compensation charge in the quarter.
- Ongoing investment in research and development across its pipeline.
On a GAAP basis, the company reported a net loss of $58 million ($0.16 per share) for the quarter, compared to a net loss of $3 million in the prior-year period.
Market Reaction and Price Action
The market’s immediate reaction to this mixed earnings report has been negative. In pre-market trading following the release, BLCO shares are down approximately 1.3%. This suggests investors are focusing more on the earnings miss and the associated costs than on the revenue beat. The stock had been relatively flat in the weeks leading up to the report, with modest gains over the past month.
2026 Financial Outlook vs. Analyst Estimates
Management provided guidance for the full year 2026, which offers a point of comparison against existing analyst forecasts. The company expects:
- Revenue: $5.375 billion to $5.475 billion, implying 5% to 7% constant currency growth.
- Adjusted EBITDA (excluding Acquired IPR&D): $1.000 billion to $1.050 billion.
The midpoint of the revenue guidance range ($5.425 billion) sits slightly above the current analyst consensus estimate of $5.43 billion for 2026 sales. The outlook suggests confidence in continued momentum, particularly from key growth drivers like MIEBO® and the recovery of the enVista® IOL platform.
Press Release Summary
Beyond the headline numbers, the earnings release emphasized several strategic highlights:
- Dry Eye Leadership: The company’s dry eye portfolio, led by MIEBO®, generated $1.1 billion in revenue for the full year 2025.
- Pipeline Progress: All clinical trial recruitment—covering glaucoma, next-generation IOLs, and new dry eye and ocular pain therapies—is reported to be on schedule.
- Operational Efficiency: CEO Brent Saunders pointed to “meaningful EBITDA margin expansion and operating leverage” in the fourth quarter as evidence of executing a “smarter” growth strategy tied to a three-year plan.
- Balance Sheet: The company ended the year with $397 million in cash and generated $283 million in cash flow from operations for the full year.
For a detailed look at historical earnings, future estimates, and analyst projections for Bausch + Lomb, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis is based on publicly available data and earnings materials. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.
