Is Bausch + Lomb Corporation (BLCO) halal?
Bausch + Lomb Corporation (TSX/NYSE: BLCO; headquartered in Vaughan, Ontario) is a global eye-health company — Vision Care (contact lenses and consumer eye products, US$784M Q2 2026), Surgical devices (US$256M), and ophthalmic Pharmaceuticals (US$354M) — a clean business with no prohibited segments. But interest-bearing debt of ~US$5.12B against a ~US$6.12B market cap gives a debt ratio of ~83.6%, far above the ~33% AAOIFI ceiling. The income gate passes (interest income ~0.29% of revenue). The FAIL comes from the debt gate alone — a verdict Zoya and ShariaPortfolio both independently reach. Data from Q2 2026 results, screened September 30, 2026.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — eye health, passes
Bausch + Lomb is a pure healthcare company with about 13,000 employees and three reportable segments (Q2 2026 company press release, July 29, 2026):
- Vision Care (US$784M Q2 2026) — contact lenses (Biotrue ONEday, ULTRA, daily silicone hydrogel) and consumer over-the-counter products (Biotrue/renu lens solutions, LUMIFY redness drops, PreserVision and Ocuvite eye vitamins).
- Surgical (US$256M) — intraocular lenses (premium IOLs +175% growth), phacoemulsification equipment, consumables and instruments for cataract, corneal and retinal procedures.
- Pharmaceuticals (US$354M) — ophthalmic prescription drugs (MIEBO, XIIDRA, VYZULTA, Lotemax, Prolensa) for dry eye, glaucoma, inflammation and retinal disease.
No alcohol, gambling, conventional finance or insurance, pork, weapons or defense, adult entertainment, or tobacco anywhere in the business. The business gate passes.
Gate two: the ratios — debt fails decisively
- Interest-bearing debt: about US$5,115M at June 30, 2026 — current portion of long-term debt US$43M plus long-term debt US$5,072M (Q2 2026 10-Q balance sheet; corroborated by company disclosures).
- Market cap: about US$6.12B (357,165,000 shares × US$17.14, NYSE, September 29, 2026; TSX: C$24.28, ≈ C$8.67B).
- Debt ÷ market cap: US$5,115M ÷ US$6,122M = ~83.6% — far above the ~33% AAOIFI ceiling (fails). Including lease liabilities (~US$163M, last disclosed in the FY2025 10-K) gives ~86%, still a fail.
- Interest income (Q2 2026 income statement): a separately disclosed "Interest income" line of US$4M — against total revenue of US$1,394M = ~0.29% — under the ~5% AAOIFI ceiling (passes). Six months: US$8M.
- Cash: cash and cash equivalents of US$367M at June 30, 2026 — about 6.0% of market cap, under the ~33% cash-plus-securities ceiling (passes).
The business and income gates pass — the FAIL comes from the debt gate alone. (Context: the January 2026 refinancing replaced US$2.8B of term B loans with new facilities maturing January 2031, cutting the margin but not the leverage; the company has reported persistent GAAP losses and an accumulated deficit of ~US$1.016B. Bausch Health Companies Inc. holds ~87% of BLCO's shares and reiterates a long-planned separation/distribution of that stake.)
What other screeners say
- Zoya: covers BLCO and rates it not Shariah-compliant under AAOIFI guidelines (as of September 30, 2026). ShariaPortfolio: its screener covers BLCO and rates it not Shariah-compliant, citing failed financial ratios — consistent with this screener's debt-gate FAIL. Musaffa: no public rating page found for BLCO as of September 30, 2026. Our screener reports its own figure-by-figure analysis above.
The bottom line
This screener gives Bausch + Lomb Corporation (TSX: BLCO) a FAIL. The eye-health business is clean and the income gate passes (interest income ~0.29%), but ~US$5.12B of debt against a ~US$6.12B market cap is ~83.6% — about two and a half times the ~33% ceiling. Zoya and ShariaPortfolio independently reach the same non-compliant verdict. Snapshot dated September 30, 2026; re-checked quarterly after earnings.
Sources
- Bausch + Lomb Q2 2026 results press release (Business Wire, July 29, 2026) — revenue by segment (Vision Care US$784M, Surgical US$256M, Pharmaceuticals US$354M); condensed consolidated statements of operations with separately disclosed "Interest income" (US$4M Q2, US$8M six months) and "Total revenues" (US$1,394M Q2).
- Bausch + Lomb Q2 2026 10-Q (SEC) — balance sheet at June 30, 2026: current portion of long-term debt US$43M, long-term debt US$5,072M; 357,165,000 weighted-average shares outstanding; cash, cash equivalents and restricted cash US$378M (US$367M cash and cash equivalents).
- Bausch + Lomb FY2025 10-K — lease liabilities (current US$38M + long-term US$125M ≈ US$163M, last disclosed breakout).
- Bausch + Lomb January 2026 refinancing disclosure — US$2,802.125M replacement term B loans (Fourth Amendment), maturing January 15, 2031; Bausch Health Companies ~87% shareholding and planned separation reiterated in risk factors.
- Zoya (zoya.finance/stocks/blco) — BLCO flagged not Shariah-compliant (AAOIFI), accessed September 30, 2026.
- ShariaPortfolio screener (spscreener.mxcorporate.com) — BLCO rated not Shariah-compliant, citing failed financial ratios, accessed September 30, 2026.
- Market data: NYSE:BLCO US$17.14 (September 29, 2026 close); TSX:BLCO C$24.28 (September 29, 2026 close) — market cap ~US$6.12B / ~C$8.67B.
Related screeners
Frequently asked questions
Is Bausch + Lomb (BLCO) halal?
Our screener gives Bausch + Lomb Corporation a FAIL screening result. The business — eye health (Vision Care contact lenses and consumer eye products, Surgical devices, ophthalmic Pharmaceuticals) — is clean, and the income gate passes (interest income US$4M vs US$1,394M Q2 revenue = 0.29%). But interest-bearing debt of ~US$5.12B against a ~US$6.12B market cap gives a debt ratio of ~83.6%, far above the ~33% AAOIFI ceiling. Note: BLCO is dual-listed on the NYSE and the TSX (TSX: BLCO), headquartered in Vaughan, Ontario.
Why does Bausch + Lomb fail the debt gate?
At June 30, 2026 the company carried about US$5,115M of interest-bearing debt (current portion of long-term debt US$43M plus long-term debt US$5,072M) against a market cap of only ~US$6.12B (357,165,000 shares at US$17.14, September 29, 2026). The ratio is ~83.6% — about two and a half times the ~33% AAOIFI ceiling. Including lease liabilities (~US$163M, last disclosed in the FY2025 10-K) gives ~86%, still a fail.
Do Bausch + Lomb's other ratios pass?
Yes. Interest income is separately disclosed in the Q2 2026 statements: US$4M against total revenue of US$1,394M = ~0.29% — under the ~5% AAOIFI ceiling (six months: US$8M). Cash and cash equivalents of US$367M are ~6.0% of market cap — under the ~33% cash-plus-securities ceiling. The FAIL comes from the debt gate alone.
What do Zoya, Musaffa and ShariaPortfolio say about Bausch + Lomb?
Zoya covers BLCO and rates it not Shariah-compliant. ShariaPortfolio's screener covers BLCO and rates it not Shariah-compliant, citing failed financial ratios — consistent with this screener's debt-gate FAIL. We found no Musaffa rating page for BLCO as of September 30, 2026. Our screener reports its own figure-by-figure analysis above.
Could Bausch + Lomb become halal?
Only if the debt load shrinks materially. The January 2026 refinancing (US$2.8B replacement term B loans, maturing January 2031) extended maturities but did not reduce leverage. Bausch Health Companies holds ~87% of BLCO's shares and reiterates a long-planned separation/distribution of that stake — a change in ownership would not by itself change the debt math. Re-screen after a material deleveraging or a large equity raise.