New Product Launches and Strong Commercial Execution Drive Alcon's Second-Quarter 2026 Growth
ALC.SW,ALC
- Second-quarter 2026 sales of $2.8 billion, up 8% on a reported basis, or up 7% constant currency1 (cc), versus second-quarter 2025
- Returned $538 million to shareholders through dividends and share repurchases on a year-to-date basis
- Updated full-year guidance - raised core operating margin and core diluted EPS growth
Ad Hoc Announcement Pursuant to Art. 53 LR
GENEVA--(BUSINESS WIRE)--Alcon (SIX/NYSE:ALC), the global leader in eye care, reported its financial results for the three and six month periods ending June 30, 2026. For the second quarter of 2026, sales were $2.8 billion, up 8% on a reported basis and up 7% on a constant currency basis1, as compared to the same quarter of the previous year. Alcon reported diluted earnings per share of $0.00 and core diluted earnings per share2 of $0.84 in the second quarter of 2026.
"Our team delivered strong second-quarter results and executed well across the business," said David J. Endicott, Alcon's Chief Executive Officer. "UNITY, PanOptix Pro, TRYPTYR and other recent launches are driving growth and reinforcing the strength of our innovation engine. Across the portfolio, our innovative products continue to gain traction and expand our market positions, including contact lenses where we are continuing to gain share. With a robust pipeline and several important launches ahead, we are well positioned to deliver sustainable long-term growth and further strengthen our leadership in eye care."
Second-quarter and first-half 2026 key figures |
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Three months ended
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| 2026 |
| 2025 |
| 2026 |
| 2025 |
Net sales ($ millions) |
| 2,782 |
| 2,577 |
| 5,467 |
| 5,028 |
Operating margin (%) |
| 0.4 |
| 9.6 |
| 5.5 |
| 14.2 |
Diluted earnings per share ($) |
| 0.00 |
| 0.35 |
| 0.39 |
| 1.06 |
Core results (non-IFRS measure)2 |
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Core operating margin (%) |
| 20.6 |
| 19.1 |
| 20.9 |
| 19.9 |
Core diluted earnings per share ($) |
| 0.84 |
| 0.76 |
| 1.69 |
| 1.50 |
Cash flows ($ millions) |
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Net cash flows from operating activities |
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| 928 |
| 889 |
Free cash flow (non-IFRS measure)3 |
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| 693 |
| 681 |
| 1. | Constant currency (cc) is a non-IFRS measure. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. | |
| 2. | Core results, such as core gross margin, core operating income, core operating margin and core diluted EPS, are non-IFRS measures. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. | |
| 3. | Free cash flow is a non-IFRS measure. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. |
Second-quarter and first-half 2026 results
Reported net sales for the second quarter of 2026 were $2.8 billion, up 8% versus the second quarter of 2025. Excluding favorable currency impacts of 1%, sales were up 7% on a constant currency basis. Reported net sales for the first half of 2026 were $5.5 billion, up 9% versus the first half of 2025. Excluding favorable currency impacts of 2%, sales were up 7% on a constant currency basis.
The following table highlights net sales by segment for the second quarter and first half of 2026:
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($ millions unless indicated otherwise) |
| 2026 |
| 2025 |
| $ |
| cc1 (non-IFRS measure) |
| 2026 |
| 2025 |
| $ |
| cc1 (non-IFRS measure) |
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Surgical |
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Implantables |
| 466 |
| 456 |
| 2 |
| 1 |
| 904 |
| 876 |
| 3 |
| 1 |
Consumables |
| 825 |
| 777 |
| 6 |
| 5 |
| 1,594 |
| 1,489 |
| 7 |
| 5 |
Equipment/other |
| 279 |
| 222 |
| 26 |
| 25 |
| 532 |
| 421 |
| 26 |
| 24 |
Total Surgical |
| 1,570 |
| 1,455 |
| 8 |
| 7 |
| 3,030 |
| 2,786 |
| 9 |
| 7 |
Vision Care |
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Contact lenses |
| 726 |
| 692 |
| 5 |
| 5 |
| 1,464 |
| 1,380 |
| 6 |
| 4 |
Ocular health |
| 486 |
| 430 |
| 13 |
| 12 |
| 973 |
| 862 |
| 13 |
| 11 |
Total Vision Care |
| 1,212 |
| 1,122 |
| 8 |
| 7 |
| 2,437 |
| 2,242 |
| 9 |
| 7 |
Net sales |
| 2,782 |
| 2,577 |
| 8 |
| 7 |
| 5,467 |
| 5,028 |
| 9 |
| 7 |
Net sales by segment
Second quarter
Surgical
Surgical net sales were $1.6 billion, an increase of 8% on a reported basis and 7% on a constant currency basis versus the second quarter of 2025.
- Implantables net sales were $466 million, an increase of 2%. Excluding favorable currency impacts of 1%, Implantables net sales increased 1% constant currency. This growth was driven by an increase in IOLs of 2% constant currency, primarily driven by the strong performance of PanOptix Pro and reflecting competitive pressures, partially offset by lower sales in surgical glaucoma.
- Consumables net sales were $825 million, an increase of 6%. Excluding favorable currency impacts of 1%, Consumables net sales increased 5% constant currency. Growth was driven by procedural growth and price increases with continued softness in the cataract market.
- Equipment/other net sales were $279 million, an increase of 26%. Excluding favorable currency impacts of 1%, Equipment/other net sales increased 25% constant currency. This growth was led by recent equipment launches, including the Unity platform.
Vision Care
Vision Care net sales were $1.2 billion, an increase of 8% on a reported basis and 7% on a constant currency basis versus the second quarter of 2025.
- Contact lenses net sales were $726 million, an increase of 5% on a reported and constant currency basis. This growth reflects product innovation and price increases, partially offset by declines in legacy products.
- Ocular health net sales were $486 million, an increase of 13%. Excluding favorable currency impacts of 1%, Ocular health net sales increased 12% constant currency. Growth was led by our portfolio of dry eye products, including Tryptyr and Systane.
First half
Surgical
Surgical net sales were $3.0 billion, an increase of 9% on a reported basis and 7% on a constant currency basis versus the first half of 2025.
- Implantables net sales were $904 million, an increase of 3%. Excluding favorable currency impacts of 2%, Implantables net sales increased 1% constant currency. This growth was driven by an increase in IOLs of 2% constant currency, primarily driven by the strong performance of PanOptix Pro and reflecting competitive pressures, partially offset by lower sales in surgical glaucoma.
- Consumables net sales were $1.6 billion, an increase of 7%. Excluding favorable currency impacts of 2%, Consumables net sales increased 5% constant currency. Growth was driven by procedural growth and price increases with continued softness in the cataract market.
- Equipment/other net sales were $532 million, an increase of 26%. Excluding favorable currency impacts of 2%, Equipment/other net sales increased 24% constant currency. This growth was led by recent equipment launches, including the Unity platform.
Vision Care
Vision Care net sales were $2.4 billion, an increase of 9% on a reported basis and 7% on a constant currency basis versus the first half of 2025.
- Contact lenses net sales were $1.5 billion, an increase of 6%. Excluding favorable currency impacts of 2%, Contact lenses net sales increased 4% constant currency. This growth reflects product innovation and price increases, partially offset by declines in legacy products.
- Ocular health net sales were $973 million, an increase of 13%. Excluding favorable currency impacts of 2%, Ocular health net sales increased 11% constant currency. Growth was led by our portfolio of dry eye products, including Tryptyr and Systane.
Operating income
Second quarter
Operating income in the current year period was offset by the decision to discontinue the IOL programs acquired from PowerVision, Inc. in March 2019 ("PowerVision programs") following the analysis of the latest clinical study data. The PowerVision programs did not produce acceptable patient outcomes based principally on persistent unpredictable post-surgical visual outcomes reported in a subset of the patients that could not be resolved despite multiple development efforts. As part of the decision to discontinue the PowerVision programs, the Company recorded a pre-tax, non-cash net charge of $402 million (post-tax of $287 million) in the current year period. The net charge has no impact on the Company's cash position and does not change the Company’s previously communicated long-range financial objectives.
Operating income was $11 million (-96%, -97% cc), compared to $247 million in the prior year period. Operating margin decreased 9.2 percentage points on a reported basis and 9.3 percentage points on a constant currency basis. The current year period included a pre-tax, non-cash net charge of $402 million related to the discontinuation of the PowerVision programs discussed above, costs associated with efficiency measures and sales and marketing behind new product launches, partially offset by lower amortization, manufacturing efficiencies and $15 million of other revenue from a licensee. The prior year period included charges related to the discontinued commercialization of a Vision Care product and higher inventory-related costs.
Adjustments to arrive at core operating income in the current year period were $563 million, mainly due to a pre-tax, non-cash net charge of $402 million related to the discontinuation of the PowerVision programs, $128 million of amortization and $33 million of costs associated with efficiency measures. Adjustments to arrive at core operating income in the prior year period were $244 million, mainly due to $173 million of amortization and $44 million of product discontinuation charges.
Core operating income was $574 million (+17%, +16% cc), compared to $491 million in the prior year period. Core operating margin increased 1.5 percentage points on a reported basis and 1.6 percentage points on a constant currency basis. The current year period included manufacturing efficiencies and $15 million of other revenue from a licensee, partially offset by sales and marketing behind new product launches. The prior year period included higher inventory-related costs.
First half
Operating income was $303 million (-58%, -61% cc), compared to $715 million in the prior year period. Operating margin decreased 8.7 percentage points on a reported basis and 9.1 percentage points on a constant currency basis. The current year period included a pre-tax, non-cash net charge of $402 million related to the discontinuation of the PowerVision programs, costs associated with efficiency measures, sales and marketing behind new product launches, impairment charges related to a currently marketed product intangible asset and incremental tariffs, partially offset by lower amortization and manufacturing efficiencies. The prior year period included gains on fair value remeasurements of investments in associated companies, partially offset by charges related to the discontinued commercialization of a Vision Care product.
Adjustments to arrive at core operating income in the current year period were $840 million, mainly due to a pre-tax, non-cash net charge of $402 million related to the discontinuation of the PowerVision programs, $257 million of amortization, $121 million of costs associated with efficiency measures, $38 million of impairment charges related to a currently marketed product intangible asset and $21 million of acquisition and integration related items. Adjustments to arrive at core operating income in the prior year period were $287 million, mainly due to $345 million of amortization, $44 million of product discontinuation charges and $23 million of acquisition and integration related items, partially offset by gains of $142 million on fair value remeasurements of investments in associated companies.
Core operating income was $1.1 billion (+14%, +11% cc), compared to $1.0 billion in the prior year period. Core operating margin increased 1.0 percentage points on a reported basis and 0.9 percentage points on a constant currency basis. The current year period included manufacturing efficiencies, partially offset by sales and marketing behind new product launches and incremental tariffs.
Taxes
Second quarter
There was a reported tax benefit of $46 million in the current year period, compared to a tax expense of $23 million in the prior year period. The current year tax benefit was primarily driven by the reversal of deferred tax liabilities of $115 million related to the discontinuation of the PowerVision programs. The prior year period included a more favorable mix of pre-tax income/(loss) across geographical tax jurisdictions and a net benefit from discrete tax items.
Core tax expense was $107 million, compared to $63 million in the prior year period, and the average core tax rate was 20.7%, compared to 14.2% in the prior year period. The increase in the average core tax rate was primarily driven by a more favorable mix of pre-tax income/(loss) across geographical tax jurisdictions and a net benefit from discrete tax items in the prior year period.
First half
Reported tax expense was $5 million, compared to $87 million in the prior year period, and the average reported tax rate was 2.6%, compared to 14.2% in the prior year period. The average reported tax rate in the current year period was impacted by a $115 million tax benefit from the reversal of deferred tax liabilities related to the discontinuation of the PowerVision programs. The average reported rate in the prior year period included a non-taxable gain on the fair value remeasurement of an investment in an associated company and net benefits from discrete tax items.
Core tax expense was $209 million, compared to $160 million in the prior year period, and the average core tax rate was 20.2%, compared to 17.7% in the prior year period. The prior year period included net benefits from discrete tax items.
Diluted earnings per share
Second quarter
Diluted earnings per share of $0.00, compared to $0.35 in the prior year period, primarily as a result of a post-tax, non-cash net charge of approximately $287 million related to the discontinuation of the PowerVision programs. Core diluted earnings per share of $0.84 increased 11%, or 9% on a constant currency basis, versus the prior year period.
First half
Diluted earnings per share of $0.39 decreased 63%, or 68% on a constant currency basis, versus the prior year period, primarily due to a post-tax, non-cash net charge of approximately $287 million related to the discontinuation of the PowerVision programs and costs associated with efficiency measures. The prior year period included gains of $142 million on fair value remeasurements of investments in associated companies. Core diluted earnings per share of $1.69 increased 13%, or 10% on a constant currency basis, versus the prior year period.
Cash flow highlights
Net cash flows from operating activities amounted to $928 million for the first six months of 2026, compared to $889 million in the prior year period. Free cash flow was $693 million for the six months of 2026, compared to $681 million in the prior year period.
Capital allocation
The Company returned $469 million to shareholders in the second quarter, which included $174 million of dividends, and $295 million of share repurchases. As of June 30, 2026, the Company had approximately $1.2 billion remaining of its previously announced $1.5 billion authorization.
On a year-to-date basis through the second quarter, the Company has returned $538 million to shareholders through dividends and share repurchases.
Alcon continues to expect to fund the program through cash generated from operations. The program is subject to customary safe harbor conditions and authorization of the Swiss Takeover Board. The timing and total amount of share repurchases and cancellations will depend upon a variety of factors. The program is expected to be completed over a three-year period, but may be suspended or discontinued at any time.
Further information (including official publications in English, German and French) is available at https://investor.alcon.com/stock-information/share-repurchase-history/default.aspx.
2026 outlook
The Company updated its 2026 outlook as per the table below.
2026 outlook4 | as of May | as of August | Comments |
Net sales growth vs. prior year (cc)1 (non-IFRS measure) | +5% to +7% | +5% to +7% | Maintained |
Core operating margin2 change vs. prior year (cc)1 (non-IFRS measure) | +70 to +170 bps | +90 to +190 bps | Increased |
Core diluted EPS2 growth vs. prior year (cc)1 (non-IFRS measure) | +10% to +13% | +12% to +15% | Increased |
This outlook assumes the following:
- Aggregated markets grow approximately 3% to 4%
- The Company expects a full-year tariff impact, net of mitigating actions and refunds, of approximately $40 million to $90 million, which is expected to pressure cost of net sales. This estimate assumes that the tariffs currently applicable to Alcon's business remain in effect through year-end, including U.S. import tariff rates of approximately 10% to 12.5%. This also reflects an anticipated refund of approximately $60 million from the U.S. government in the third quarter of 2026. Approximately two-thirds of the refund benefit is expected to be reinvested in the business.
- Exchange rates as of the end of July 2026 prevail through year-end
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As of the end of July the expected currency impact to:
- Net sales growth is +90 basis points
- Core operating margin rate is +10 basis points
- Core diluted EPS growth is +170 basis points
- Non-operating expense5 for FY 2026 is expected to be between $200 and $220 million
- The core effective tax rate6 for FY 2026 is expected to be approximately 20%
- Capital expenditures are expected to be mid-single digits as a percentage of sales
- Approximately 488 million weighted-averaged diluted shares7
| 4. | The forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable effort, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. Refer to the section 'Non-IFRS measures as defined by the Company' for more information. | ||
| 5. | Non-operating income & expense includes interest expense, other financial income & expense and share of loss from associated companies. | ||
| 6. | Core effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. For additional information, see the explanation regarding reconciliation of forward-looking guidance in the 'Non-IFRS measures as defined by the Company' section. | ||
| 7. | The estimated share count used in the Company's guidance excludes any potential benefit from future share repurchase activity. |
Other Notable Accomplishments
- Earned MedTech Breakthrough’s 2026 Best Practice Management Solution award for Alcon’s Adi Digital Ecosystem, recognizing its role in modernizing cataract surgery workflows by connecting inventory management, online ordering and clinic-to-OR coordination.
- Showcased Alcon’s thought leadership at the 2026 American Society of Cataract and Refractive Surgery (ASCRS) Annual Meeting in Washington, D.C., with more than 60 scientific presentations and peer-to-peer educational symposia highlighting the company’s clinical and technology innovation.
- Advanced ophthalmic innovation through Alcon’s partnership with ARVO, a global association for eye and vision researchers. The 2026 Live Eye Pitch Event spotlights emerging eye and vision research and connects the winner to Alcon Seed Fund diligence for potential investment.
- Celebrated more than 30 years of Alcon WaveLight innovation, reinforcing three decades of precision engineering, bold innovation and commitment to advancing quality eye care.
- Announced a non-exclusive collaboration with RxSight to jointly develop adjustable presbyopia-correcting intraocular lenses, combining Alcon’s PCIOL optical designs with RxSight’s post-operative light-adjustable technology to help surgeons fine-tune visual outcomes after cataract surgery.
- Engaged nearly 5,200 employees in Alcon in Action, the company’s annual global volunteer initiative, supporting communities across 32 countries through health, nutrition, housing and environmental initiatives.
- Earned global recognition as an employer of choice, including honors from Forbes, Ethisphere and the Human Rights Campaign.
- Expanded Alcon Cares' impact through $23.4 million of product donations year-to-date, supporting medical missions, patient assistance and disaster relief programs, while placing donated equipment across 12 charitable care initiatives globally.
Webcast and Conference Call Instructions
The Company will host a conference call on August 11 2026 at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss its second-quarter 2026 earnings results. The webcast can be accessed online through Alcon's Investor Relations website, i.e. investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available online within 24 hours after the event. To listen the Company's conference call, click on the link:
The Company's second-quarter 2026 press release, interim financial report and supplemental presentation materials can be found online through Alcon's Investor Relations website, or by clicking on the link:
Cautionary Note Regarding Forward-Looking Statements
This press release contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our 2026 outlook, liquidity, revenue, revenue growth, gross margin, operating margin, core operating margin, core operating margin growth, effective tax rate, foreign currency exchange movements, tariff impact, nonoperating expenses, earnings per share, earnings per share growth, operating cash flow, free cash flow, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our market growth assumptions, our social impact and sustainability plans, targets, goals and expectations, and generally, our expectations concerning our future performance.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict such as: cybersecurity breaches and technology failures that could disrupt operations; our ability to effectively manage the risks associated with transformational information technology changes such as the ethical use of artificial intelligence and disruptive technologies and the migration to cloud-based platforms; compliance with data privacy, identity protection and information security laws, particularly with the increased use of artificial intelligence; the impact of a disruption in our global supply chain, including the effect of tariffs, or important facilities, particularly when we single-source or rely on limited sources of supply; our reliance on outsourcing key business functions; the increasingly challenging economic, political and legal environment in China; global and regional economic, financial, monetary, legal, tax, political and social change; our ability to comply with anti-corruption, anti-bribery, export control, trade sanction, or similar laws; our ability to attract and retain qualified personnel; our ability to manage the risks associated with operating as a third party contract manufacturer; our success in completing strategic acquisitions, including equity investments in early-stage companies, on favorable terms or at all, and in integrating acquired businesses; the success of our research and development efforts, including our ability to innovate to compete effectively; our ability to manage the rapid evolution and adoption of artificial intelligence; terrorism, war and similar events; our ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers; pricing pressure from changes in third party payor coverage and reimbursement methodologies; our ability to comply with all laws to which we may be subject; the ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing; the effect of product recalls or voluntary market withdrawals; our ability to manage social impact and sustainability matters; our ability to properly educate and train healthcare providers on our products; our ability to protect our intellectual property; the accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets, and the adequacy of our financial reporting, accounting practices and internal controls; our ability to service our debt obligations; the need for additional financing through the issuance of debt or equity; the effects of litigation, including product liability lawsuits and governmental investigations; legislative, tax and regulatory reform; the impact of being listed on two stock exchanges; the ability to declare and pay dividends; the different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; the effect of maintaining or losing our foreign private issuer status under US securities laws; and the ability to enforce US judgments against Swiss corporations.
Contacts
Investor Relations
Daniel Cravens
Richard Bourne
+ 41 589 112 110 (Geneva)
+ 1 817 615 2789 (Fort Worth)
[email protected]
Media Relations
Steven Smith
+ 41 589 112 111 (Geneva)
+ 1 817 551 8057 (Fort Worth)
[email protected]
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