Bausch + Lomb Stock Surges on Strong Q3 Earnings and Raised Outlook

Bausch + Lomb (BLCO) shares surged more than 7% in morning trading after the company reported third-quarter 2026 financial results that handily beat Wall Street estimates and raised its full-year forecast.

Third-Quarter Results Exceed Expectations

The global eye health company announced an adjusted earnings per share (EPS) of $0.34, which was nearly double the $0.18 reported in the same period a year ago. This figure significantly surpassed the analyst consensus of $0.21 per share.

Revenue for the quarter also came in ahead of forecasts, reaching $1.375 billion. According to the company's report, this represented a 7% increase year-over-year, or 8% on a constant-currency basis. The company noted growth across all three of its business segments.

Profitability Improves, Guidance Raised

Bausch + Lomb demonstrated strong gains in profitability. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 34% year-over-year to $325 million. The company's adjusted gross margin expanded by approximately 300 basis points to 64.7%, which it attributed to a favorable product mix and manufacturing efficiencies.

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Alongside the strong quarterly performance, Bausch + Lomb raised its full-year 2026 revenue and adjusted EBITDA guidance for the third time this year, signaling management's sustained confidence in its business outlook. "Our third-quarter performance reflects the strength and breadth of the business," said Chairman and interim CEO Thomas J. Appio in a statement.

Market Reaction and Key Drivers

The stock's rally pushed shares to a new 52-week high of $19.09 during the session. The move was driven by company-specific catalysts, as the broader S&P 500 and Nasdaq indices were largely flat during trading.

Key growth drivers included double-digit revenue gains for products such as MIEBO, LUMIFY, its Daily SiHy contact lens portfolio, and Premium IOLs in its Surgical segment. The company also reported its strongest free cash flow generation since its 2022 initial public offering, providing investors with further positive signals about its operational health.