Lily Lazada

Lily Lazada inquired about Bausch + Lomb's ability to offset tariffs in 2026, seeking insight into the potential gross tariff impact for the upcoming year. She also followed up on the contact lens market, asking about the slightly softer growth outlook and the continued contribution of price.

Answer

Chairman and CEO Brent Saunders stated that the tariff situation remains fluid due to ongoing trade negotiations, but Bausch + Lomb has a dedicated team and levers to manage and mitigate impacts. He noted the contact lens market is growing at the lower end of mid-single digits (4-5%), with some softness observed in Southeast Asia and China, and a bifurcation in consumer spending.

Lily Lazada inquired about Bausch + Lomb's ability to offset tariffs in 2026, the potential gross tariff impact for next year, and sought clarification on the contact lens market growth, noting a slightly softer outlook than previously indicated, and the role of price as a contributor.

Answer

Chairman and CEO Brent Saunders explained that the tariff situation remains fluid, particularly regarding reciprocal tariffs from China, but Bausch + Lomb has a dedicated team and levers to manage and absorb the impact. He noted the contact lens market is likely growing at 4-5% this year, slightly softer than mid-single digits, due to softness in regions like Southeast Asia and China, and a bifurcation where lower-income consumers are more stressed, impacting cheaper lenses differently than premium ones.