Why Bausch Health Companies Stock Skyrocketed by Almost 40% Last Month

Bausch Health Companies (BHC) surged nearly 40% in July 2026, propelled by a Canadian regulatory approval for its schizophrenia drug Prokedi and a second-quarter earnings beat that prompted management to raise full-year guidance.

The company reported Q2 revenue of $2.85 billion, up 13% year-over-year, and adjusted net income of $476 million, or $1.26 per share, topping analyst estimates. Management lifted both revenue and adjusted EBITDA guidance for full-year 2026, citing strength across its diversified pharmaceutical portfolio.

The Prokedi approval marks a significant milestone for Bausch's neurology pipeline, adding a commercial asset in a high-value therapeutic area. The combination of regulatory momentum and operational execution drove the stock's strongest monthly performance in recent memory.

The guidance raise suggests management sees the Q2 strength as sustainable rather than a one-off beat, with contributions from multiple business units rather than a single product cycle.