Alcon (ALC) investor relations material

Executive summary

• Q3 2025 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 segment growth, market share stabilization, and product differentiation.

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

• Free cash flow for the first nine months was $1.2 billion, with $550 million returned to shareholders via buybacks and dividends.

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

Financial highlights

• Q3 sales reached $2.6 billion, up 6% year-over-year; Q3 core operating margin was 20.2%, down 40 bps year-over-year.

• Q3 core diluted EPS was $0.79, down $0.02 year-over-year; Q3 diluted EPS was $0.48.

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

• $550 million returned to shareholders in the first nine months, including $384 million in share repurchases and $166 million in dividends.

• Q3 gross margin was 56.3%; core gross margin was 62.9%.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: net 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.

• Assumes low single-digit market growth, $100 million gross tariff impact offset by 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.