Alcon (ALC) investor relations material

Executive summary

• Q3 2025 net sales reached $2.6 billion, up 6% year-over-year, with strong momentum in equipment and ocular health driven by new product launches and innovation focus.

• Unity VCS, PanOptix Pro, and Tripteer launches contributed to market share stabilization and product differentiation, with positive feedback and deliberate installation pacing.

• Contact lens segment outpaced the market, especially in toric modalities, and ocular health products like SUSTAIN and Tripteer saw robust adoption.

• Market conditions improved in Q3 after a soft first half, with optimism for continued growth into next year.

• Free cash flow for the first nine months was $1.2 billion, with cash from operations at $1.6 billion.

Financial highlights

• Q3 2025 sales were $2.6 billion, up 6% year-over-year; nine-month sales totaled $7.6 billion, up 4%.

• Surgical franchise revenue was $1.4 billion, up 6% year-over-year; Vision Care sales were $1.2 billion, up 7%.

• Core operating margin for Q3 was 20.2%, down 40 bps year-over-year; diluted EPS was $0.48, and core diluted EPS was $0.79.

• Free cash flow for 9M25 was $1.2 billion; capex was $374 million; cash and equivalents were $1.5 billion; debt was $4.7 billion.

• $550 million returned to shareholders via buybacks and dividends in the first nine months.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: sales of $10.3–$10.4 billion, constant currency growth of 4–5%.

• Core operating margin expected at 19.5–20.5%; core diluted EPS range of $3.05–$3.15.

• Management expects to offset the estimated $100 million gross impact of new tariffs in 2025 through FX and operational actions.

• R&D to finish at the high end of 8–10% of sales, reflecting recent acquisitions.

• 2026 expected to see continued acceleration from new launches, but incremental tariff impact of $50–$100 million and full-year AURYON investment will pressure margins by 40 bps.