Alcon (ALC) Q1 2026 earnings summary

Executive summary

• Net sales reached $2.7 billion in Q1 2026, up 10% year-over-year (6% in constant currency), driven by innovation, strong product launches, and portfolio resilience in both Surgical and Vision Care segments.

• Core diluted EPS rose to $0.85, up 16% year-over-year, while reported diluted EPS was $0.39, down 44% due to prior-year non-recurring gains and current-year efficiency and impairment costs.

• Free cash flow was $279 million, flat year-over-year; net cash from operating activities was $418 million.

• Dividend of CHF 0.28 per share approved, payable around May 7; new $1.5 billion share repurchase program announced to be executed over three years.

• UNITY platform, PanOptix Pro IOLs, Tryptyr, and Systane Pro contributed significantly to growth and share gains.

Financial highlights

• Surgical franchise revenue rose 10% to $1.5 billion, with equipment/other up 27% and implantable sales up 1%.

• Vision Care sales increased 9% to $1.2 billion, led by ocular health (+13%) and contact lenses (+7%).

• Gross margin was 56.8%; core gross margin 63%.

• Core operating margin improved to 21.2% (up 40 bps YoY); reported operating margin declined to 10.9% due to efficiency and impairment costs.

• Core diluted EPS was $0.85 (up 16% YoY); IFRS diluted EPS was $0.39 (down 44% YoY).

Outlook and guidance

• 2026 net sales growth guidance maintained at +5% to +7% (constant currency); core diluted EPS growth guidance raised to +10% to +13%.

• Core operating margin expected to improve by 70–170 basis points.

• Assumptions include 3–4% market growth, $100–$150 million full-year tariff impact, and a core tax rate of ~20%.

• Majority of margin expansion anticipated in the second half of the year.

• Tariff rate assumption lowered to 10%, reducing expense by $25 million, to be reinvested in the business.