Here's a fun thing about markets: sometimes a company tells you it's going to make more money, and the stock falls 10% anyway. That's roughly what happened to Bausch + Lomb Corp. (BLCO) on Monday.
The eye care company announced an unexpected leadership change, and investors did not love it. The stock fell nearly 10% on the day, even as the company signaled stronger full-year earnings ahead.
The company and its parent, Bausch Health Companies Inc. (BHC), said Monday that Thomas J. Appio has been appointed interim CEO of Bausch + Lomb, effective immediately.
Appio replaces Brent Saunders, who has led Bausch + Lomb since 2023. Saunders and the company's board mutually agreed on his departure.
The New Interim Boss Knows His Way Around Eye Care
Appio will continue serving as CEO of Bausch Health while taking charge of Bausch + Lomb. He became chairman of Bausch + Lomb's board in August 2026 and has led Bausch Health since 2022.
He brings extensive experience in the eye care business. He joined Bausch + Lomb in 2010 as managing director for China and became president of its international operations in 2016.
Under his leadership, Bausch Health's operations, excluding Bausch + Lomb, have recorded 13 consecutive quarters of year-over-year growth in revenue and adjusted EBITDA.
The board said Appio's industry knowledge and global leadership experience would help sustain the company's growth.
Meanwhile, Saunders said Bausch + Lomb had strengthened its strategy, expanded its product pipeline and improved its competitive position during his tenure.
Guidance Is Going Up, Details Are Coming Later
Despite the leadership shake-up, Bausch + Lomb and Bausch Health expect to raise their full-year 2026 adjusted EBITDA guidance, excluding acquired in-process research and development expenses.
The anticipated increase follows strong preliminary third-quarter performance and expectations for continued improvement through the rest of 2026.
However, neither company disclosed revised earnings forecasts. Both companies plan to provide additional details when they release third-quarter financial results on Oct. 28.
The preliminary outlook remains subject to final accounting adjustments and financial reviews.
For context on what these businesses actually do: Bausch + Lomb develops contact lenses, prescription eye care products and surgical devices. Bausch Health operates a broader pharmaceutical business, including gastroenterology, dermatology and neuroscience treatments.
Price Action: Bausch Health Companies shares were down 2.15% at $5.91 and Bausch & Lomb shares were down 9.88% at $15.59 at the time of publication on Monday, according to market data.
