Alcon (ALC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 net sales reached $2.7 billion, up 9% year-over-year, driven by new product launches and innovation, with full-year net sales at $10.3 billion, up 5% from 2024.

• Core diluted EPS for Q4 was $0.78 (up 8% year-over-year), while reported diluted EPS was $0.44 (down 23% year-over-year); full-year core diluted EPS was $3.07, flat year-over-year.

• Generated $2.3 billion in operating cash flow and $1.7 billion in free cash flow for the year.

• The company remains focused on disciplined investment, cost optimization, and shareholder returns.

Financial highlights

• Q4 2025 core operating margin was 19.0%, down 110 bps year-over-year; full-year core operating margin was 19.8%, down 90 bps.

• Q4 2025 IFRS operating margin was 11.6%, down 430 bps year-over-year; full-year IFRS operating margin was 13.2%.

• Q4 core gross margin was 62.5%; full-year core gross margin was 62.7%.

• EBITDA for 2025 was $2.68 billion, up from $2.63 billion in 2024.

• $848 million returned to shareholders in 2025 via $682 million in share repurchases and $166 million in dividends.

Outlook and guidance

• 2026 net sales growth expected at 5–7% (constant currency), with core operating margin up 70–170 bps and core diluted EPS growth of 9–12%.

• Full-year tariff impact expected to be $125–175 million, pressuring cost of sales; average tariff rate of 15% assumed for 2026.

• Core effective tax rate for 2026 projected at ~20%.

• Efficiency measures to deliver $100 million in annualized savings, with $50 million realized in 2026 at a $150 million total cost.

• Dividend of 28 Swiss centimes per share proposed, in line with payout policy.