Is Bausch + Lomb's Revenue Recovery Strengthening Its Investment Case After Last Year’s Recall (BLCO)?

• Bausch + Lomb reported third-quarter 2025 earnings, with revenue rising to US$1.28 billion from US$1.20 billion a year earlier, fueled by growth across all major business segments and strong results in Pharmaceuticals.
• Robust demand for premium intraocular lenses and revitalized consumer brands contributed to a recovery following last year’s recall, while management highlighted ongoing margin improvement initiatives.
• We'll explore how sustained momentum in key product lines may influence Bausch + Lomb's investment narrative moving forward.

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What Is Bausch + Lomb's Investment Narrative?

To own Bausch + Lomb stock, an investor needs to believe in the company’s ability to execute on top-line growth and margin improvement while progressing toward eventual profitability. The latest earnings showed quarterly revenue hitting US$1.28 billion, a healthy increase that reassures on core demand across segments, but persistent net losses, US$28 million for the quarter, remain a key hurdle. Recent product launches, the strong rebound in intraocular lens sales, and management’s reiterated full-year revenue guidance highlight momentum in crucial business drivers. However, the unchanged pattern of operating losses, even as revenue rises, may refocus attention on cost structure, R&D spending, and the path to sustained profitability. While the news supports existing catalysts such as ongoing product innovation and market recovery post-recall, it also sharpens near-term risks tied to achieving profitable growth at scale, especially if margin improvements take longer than hoped. But concerns about the ability to turn higher sales into lasting profits remain front and center for investors.

Bausch + Lomb's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Bausch + Lomb range from US$16.30 to US$36.37, based on two perspectives. Such a wide span in projections speaks to differing views on how quickly margin gains might translate to profits, especially after the latest earnings reinforced ongoing losses. These varied opinions underscore the importance of digging deeper into whether near-term improvements can lead to longer term, sustainable returns.

Explore 2 other fair value estimates on Bausch + Lomb - why the stock might be worth just $16.30!

Build Your Own Bausch + Lomb Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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