-- 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)--August 10, 2026--
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 basis(1) , as compared to the same quarter of the previous year. Alcon reported diluted earnings per share of $0.00 and core diluted earnings per share(2) of $0.84 in the second quarter of 2026.
"Our team delivered strong second-quarter results and executed well across the business," said David J. Endicott, Alcon's Chief Executive Officer. "UNITY, PanOptix Pro, TRYPTYR and other recent launches are driving growth and reinforcing the strength of our innovation engine. Across the portfolio, our innovative products continue to gain traction and expand our market positions, including contact lenses where we are continuing to gain share. With a robust pipeline and several important launches ahead, we are well positioned to deliver sustainable long-term growth and further strengthen our leadership in eye care."
Second-quarter and
first-half 2026 key Three months ended Six months ended
figures June 30 June 30
-------------------- ------------------
2026 2025 2026 2025
--------------------------- --------- --------- -------- --------
Net sales ($ millions) 2,782 2,577 5,467 5,028
---------------------------- --------- --------- -------- --------
Operating margin (%) 0.4 9.6 5.5 14.2
---------------------------- --------- --------- -------- --------
Diluted earnings per share
($) 0.00 0.35 0.39 1.06
---------------------------- --------- --------- -------- --------
Core results (non-IFRS
measure)(2)
--------------------------- --------- --------- -------- --------
Core operating margin (%) 20.6 19.1 20.9 19.9
---------------------------- --------- --------- -------- --------
Core diluted earnings per
share ($) 0.84 0.76 1.69 1.50
---------------------------- --------- --------- -------- --------
Cash flows ($ millions)
--------------------------- --------- --------- -------- --------
Net cash flows from
operating activities 928 889
---------------------------- --------- --------- -------- --------
Free cash flow (non-IFRS
measure)(3) 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 $5.5 billion, up 9% versus the first half of 2025. Excluding favorable currency impacts of 2%, sales were up 7% on a constant currency basis.
The following table highlights net sales by segment for the second quarter and first half of 2026:
Three months Six months
ended June ended June
30 Change % 30 Change %
------------- ---------------------- ------------- ----------------------
($ millions unless
indicated cc(1) (non-IFRS cc(1) (non-IFRS
otherwise) 2026 2025 $ measure) 2026 2025 $ measure)
------------------- ----- ------ ------------------ ----- ------ ------------------
Surgical
------------------- ----- ------ ------------------ ----- ------ ------------------
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
------------------- ----- ------ ------------------ ----- ------ ------------------
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 outlook(4) 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 margin(2) change vs. prior year (cc)(1) (non-IFRS measure) +70 to +170 bps +90 to +190 bps Increased -------------------------------- --------------- --------------- ---------- Core diluted EPS(2) 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
-- 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:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2026/Alcons-Second-Quarter-2026-Earnings-Call-2026-fRS9bIWOaB/default.aspx
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:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2026/Alcons-Second-Quarter-2026-Earnings-Call-2026-fRS9bIWOaB/default.aspx
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.
Additional factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this press release speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise. We also undertake no obligation to update the 2026 outlook as circumstances evolve.
Intellectual Property
This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a "$(R)$" or a "$(TM)$" are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.
Non-IFRS measures as defined by the Company
Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currency, EBITDA, free cash flow and net (debt)/liquidity.
Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures.
Core results
Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, all fair value adjustments to contingent considerations from acquisitions, other than changes due to the time value of money, product discontinuation charges, net gains and losses on fund investments and equity securities valued at fair value through profit and loss ("FVPL"), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, fair value remeasurements of investments in associated companies and certain acquisition related items. The following items that exceed a threshold of $10 million, are not operating expenses necessary to the operation of the business and have costs that will vary over periods and are also excluded from core results: integration and divestment related income and expenses, divestment gains and losses, restructuring charges/releases and related items, legal related items, gains/losses on early extinguishment of debt or debt modifications, past service costs for post-employment benefit plans, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a $10 million threshold.
Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for certain items such as legal settlements in certain jurisdictions.
Alcon believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since they exclude items that can vary significantly from period to period, the core measures enable a helpful comparison of business performance across periods. For this same reason, Alcon uses these core measures in addition to IFRS and other measures as important factors in assessing its performance.
A limitation of the core measures is that they provide a view of Alcon operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of purchased intangible assets and restructurings.
Constant currency
Changes in the relative values of non-US currencies to the US dollar can affect Alcon's financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, we present information about changes in our net sales and various values relating to operating and net income that are adjusted for such foreign currency effects.
Constant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the Consolidated Income Statement excluding:
-- the impact of translating the income statements of consolidated
entities from their non-US dollar functional currencies to the US dollar;
and
-- the impact of exchange rate movements on the major transactions of
consolidated entities performed in currencies other than their functional
currency.
Alcon calculates constant currency measures by translating the current year's foreign currency values for sales and other income statement items into US dollars, using the average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars.
EBITDA
Alcon defines earnings before interest, tax, depreciation and amortization ("EBITDA") as net income excluding income taxes, depreciation of property, plant and equipment (including any related impairment charges), depreciation of right-of-use assets, amortization of intangible assets (including any related impairment charges), interest expense and other financial income and expense. Alcon management primarily uses EBITDA together with net (debt)/liquidity to monitor leverage associated with financial debts.
Free cash flow
Alcon defines free cash flow as net cash flows from operating activities less cash flow associated with the purchase or sale of property, plant and equipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator of Alcon's ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS.
Net (debt)/liquidity
Alcon defines net (debt)/liquidity as current and non-current financial debt less cash and cash equivalents, current investments, including time deposits, and derivative financial instruments. Net (debt)/liquidity is presented as additional information because management believes it is a useful supplemental indicator of Alcon's ability to pay dividends, to meet financial commitments and to invest in new strategic opportunities, including strengthening its balance sheet.
Growth rate and margin calculations
For ease of understanding, Alcon uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared to the prior year is shown as a positive growth.
Gross margins, core gross margins, operating income margins and core operating income margins are calculated based upon net sales unless otherwise noted.
Reconciliation of guidance for forward-looking non-IFRS measures
The forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable efforts, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. These items are uncertain, depend on many factors and could have a material impact on our IFRS results for the guidance period.
Financial tables
Net sales by region
Three months ended Six months ended
June 30 June 30
------------------------ ------------------------
($ millions unless
indicated
otherwise) 2026 2025 2026 2025
------------------- ----------- ----------- ----------- -----------
United States 1,241 45% 1,160 45% 2,469 45% 2,297 46%
-------------------- ----- ---- ----- ---- ----- ---- ----- ----
International 1,541 55% 1,417 55% 2,998 55% 2,731 54%
-------------------- ----- ---- ----- ---- ----- ---- ----- ----
Net sales 2,782 100% 2,577 100% 5,467 100% 5,028 100%
-------------------- ----- ---- ----- ---- ----- ---- ----- ----
Consolidated Income Statement (unaudited)
Three months ended June
30 Six months ended June 30
------------------------ --------------------------
($ millions except
earnings per
share) 2026 2025 2026 2025
------------------- ----------- ----------- ------------ ------------
Net sales 2,782 2,577 5,467 5,028
-------------------- ----------- ----------- ------------ ------------
Other revenues 41 19 62 41
-------------------- ----------- ----------- ------------ ------------
Net sales and other
revenues 2,823 2,596 5,529 5,069
-------------------- ----------- ----------- ------------ ------------
Cost of net sales (1,130) (1,196) (2,293) (2,267)
-------------------- ----------- ----------- ------------ ------------
Cost of other
revenues (18) (12) (36) (31)
-------------------- ----------- ----------- ------------ ------------
Gross profit 1,675 1,388 3,200 2,771
-------------------- ----------- ----------- ------------ ------------
Selling, general &
administration (964) (870) (1,846) (1,683)
-------------------- ----------- ----------- ------------ ------------
Research &
development (663) (245) (908) (467)
-------------------- ----------- ----------- ------------ ------------
Other income 6 5 17 154
-------------------- ----------- ----------- ------------ ------------
Other expense (43) (31) (160) (60)
-------------------- ----------- ----------- ------------ ------------
Operating income 11 247 303 715
-------------------- ----------- ----------- ------------ ------------
Interest expense (53) (51) (105) (100)
-------------------- ----------- ----------- ------------ ------------
Other financial
income & expense -- 4 2 13
-------------------- ----------- ----------- ------------ ------------
Share of loss from
associated
companies (4) (1) (6) (15)
-------------------- ----------- ----------- ------------ ------------
(Loss)/income before
taxes (46) 199 194 613
-------------------- ----------- ----------- ------------ ------------
Taxes 46 (23) (5) (87)
-------------------- ----------- ----------- ------------ ------------
Net income -- 176 189 526
-------------------- ----------- ----------- ------------ ------------
Net income
attributable to:
------------------- ----------- ----------- ------------ ------------
Shareholders of
Alcon Inc. -- 176 189 526
-------------------- ----------- ----------- ------------ ------------
Non-controlling
interests -- -- -- --
------------------- ----------- ----------- ------------ ------------
Earnings per share ($)(1)
--------------------------------------------------------------------------
Basic 0.00 0.36 0.39 1.06
-------------------- ----------- ----------- ------------ ------------
Diluted 0.00 0.35 0.39 1.06
-------------------- ----------- ----------- ------------ ------------
Weighted average number of shares outstanding (millions)
--------------------------------------------------------------------------
Basic 486.7 495.2 486.9 495.2
-------------------- ----------- ----------- ------------ ------------
Diluted 488.7 497.9 489.4 497.9
-------------------- ----------- ----------- ------------ ------------
(1) Earnings per share is calculated on the amount of net income
attributable to shareholders of Alcon Inc.
Segment contribution
Three months ended June 30 Six months ended June 30
---------------------------------------- --------------------------------------------
Change % Change %
-------------------------- ---------------------------
($ millions unless cc(1) cc(1)
indicated otherwise) 2026 2025 $ (non-IFRS measure) 2026 2025 $ (non-IFRS measure)
---------------------- ---- ---- ---- -------------------- ------ ----- ----- --------------------
Surgical segment
contribution 392 378 4 2 759 714 6 3
----------------------- ---- ---- --- ----------- ------- ------ ----- ---- ----------- -------
As % of net sales 25.0 26.0 25.0 25.6
----------------------- ---- ---- ---- -------------------- ------ ----- ----- --------------------
Vision Care segment
contribution 283 208 36 37 577 489 18 17
----------------------- ---- ---- --- ----------- ------- ------ ----- ---- ----------- -------
As % of net sales 23.3 18.5 23.7 21.8
----------------------- ---- ---- ---- -------------------- ------ ----- ----- --------------------
Not allocated to
segments (664) (339) (96) (96) (1,033) (488) (112) (111)
----------------------- ---- ---- --- ----------- ------ ------ ----- ---- ----------- ------
Operating income 11 247 (96) (97) 303 715 (58) (61)
----------------------- ---- ---- --- ----------- ------ ------ ----- ---- ----------- ------
Core adjustments
(non-IFRS measure)(1) 563 244 840 287
----------------------- ---- ---- ---- -------------------- ------ ----- ----- --------------------
Core operating income
(non-IFRS measure)(1) 574 491 17 16 1,143 1,002 14 11
----------------------- ---- ---- --- ----------- ------- ------ ----- ---- ----------- -------
(1) Core results and constant currency are non-IFRS measures. Refer to the
'Non-IFRS measures as defined by the Company' section for additional
information and to the 'Reconciliation of IFRS results to core results
(non-IFRS measure)' section for reconciliation tables.
Operating income
Three months ended June 30 Six months ended June 30
--------------------------------------------- ---------------------------------------------
Change % Change %
--------------------------- ---------------------------
($ millions unless cc(1) cc(1)
indicated otherwise) 2026 2025 $ (non-IFRS measure) 2026 2025 $ (non-IFRS measure)
---------------------- ------ ------ ----- -------------------- ------ ------ ----- --------------------
Cost of net sales (1,130) (1,196) 6 6 (2,293) (2,267) (1) --
----------------------- ------ ------ ---- ----------- ------- ------ ------ ---- ----------- -------
Gross profit 1,675 1,388 21 20 3,200 2,771 15 13
----------------------- ------ ------ ---- ----------- ------- ------ ------ ---- ----------- -------
Gross margin (%) 60.2 53.9 58.5 55.1
----------------------- ------ ------ ----- -------------------- ------ ------ ----- --------------------
Selling, general &
administration (964) (870) (11) (10) (1,846) (1,683) (10) (8)
----------------------- ------ ------ ---- ----------- ------ ------ ------ ---- ----------- ------
Research & development (663) (245) (171) (170) (908) (467) (94) (93)
----------------------- ------ ------ ---- ----------- ------ ------ ------ ---- ----------- ------
Other income 6 5 20 8 17 154 (89) (89)
----------------------- ------ ------ ---- ----------- ------- ------ ------ ---- ----------- ------
Other expense (43) (31) (39) (33) (160) (60) (167) (161)
----------------------- ------ ------ ---- ----------- ------ ------ ------ ---- ----------- ------
Operating income 11 247 (96) (97) 303 715 (58) (61)
----------------------- ------ ------ ---- ----------- ------ ------ ------ ---- ----------- ------
Operating margin (%) 0.4 9.6 5.5 14.2
----------------------- ------ ------ ----- -------------------- ------ ------ ----- --------------------
Core results (non-IFRS
measure)(1)
---------------------- ------- ------- ----- -------------------- ------- ------- ----- --------------------
Core gross profit 1,799 1,604 12 11 3,490 3,154 11 8
----------------------- ------ ------ ---- ----------- ------- ------ ------ ---- ----------- -------
Core gross margin (%) 64.7 62.2 63.8 62.7
----------------------- ------ ------ ----- -------------------- ------ ------ ----- --------------------
Core operating income 574 491 17 16 1,143 1,002 14 11
----------------------- ------ ------ ---- ----------- ------- ------ ------ ---- ----------- -------
Core operating margin
(%) 20.6 19.1 20.9 19.9
----------------------- ------ ------ ----- -------------------- ------ ------ ----- --------------------
(1) Core results and constant currency are non-IFRS measures. Refer to the
'Non-IFRS measures as defined by the Company' section for additional
information and to the 'Reconciliation of IFRS results to core results
(non-IFRS measure)' section for reconciliation tables.
Non-operating income & expense
Three months ended June 30 Six months ended June 30
----------------------------------------- ----------------------------------------
Change % Change %
--------------------------- --------------------------
($ millions unless cc(1) cc(1)
indicated otherwise) 2026 2025 $ (non-IFRS measure) 2026 2025 $ (non-IFRS measure)
---------------------- ---- ---- ----- -------------------- ---- ---- ---- --------------------
Operating income 11 247 (96) (97) 303 715 (58) (61)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Interest expense (53) (51) (4) (4) (105) (100) (5) (4)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Other financial income
& expense -- 4 (100) (108) 2 13 (85) (89)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Share of loss from
associated companies (4) (1) (300) (230) (6) (15) 60 64
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- -------
(Loss)/income before
taxes (46) 199 nm nm 194 613 (68) (73)
----------------------- ---- ---- ----- -------------------- ---- ---- --- ----------- ------
Taxes 46 (23) nm nm (5) (87) 94 94
----------------------- ---- ---- ----- -------------------- ---- ---- --- ----------- -------
Net income -- 176 (100) (104) 189 526 (64) (69)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Net income
attributable to:
---------------------- ----- ----- ----- -------------------- ----- ----- ---- --------------------
Shareholders of
Alcon Inc. -- 176 (100) (104) 189 526 (64) (69)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Non-controlling
interests -- -- -- -- -- -- -- --
---------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
Basic earnings per
share ($)(2) 0.00 0.36 (100) (104) 0.39 1.06 (63) (68)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Diluted earnings per
share ($)(2) 0.00 0.35 (100) (104) 0.39 1.06 (63) (68)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Core results (non-IFRS
measure)(1)
---------------------- ----- ----- ----- -------------------- ----- ----- ---- --------------------
Core taxes (107) (63) (70) (73) (209) (160) (31) (28)
----------------------- ---- ---- ---- ----------- ------ ---- ---- --- ----------- ------
Core net income 410 380 8 7 825 745 11 8
----------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
Core net income
attributable to:
---------------------- ----- ----- ----- -------------------- ----- ----- ---- --------------------
Shareholders of
Alcon Inc. 410 380 8 7 825 745 11 8
----------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
Non-controlling
interests -- -- -- -- -- -- -- --
---------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
Core basic earnings per
share ($)(2) 0.84 0.77 9 9 1.69 1.50 13 10
----------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
Core diluted earnings
per share ($)(2) 0.84 0.76 11 9 1.69 1.50 13 10
----------------------- ---- ---- ---- ----------- ------- ---- ---- --- ----------- -------
nm = not meaningful
(1) Core results and constant currency are non-IFRS measures. Refer to the
'Non-IFRS measures as defined by the Company' section for additional
information and to the 'Reconciliation of IFRS results to core results
(non-IFRS measure)' section for reconciliation tables.
(2) Earnings per share and core earnings per share are calculated on the
amount of net income and core net income, respectively, attributable to
shareholders of Alcon Inc.
Reconciliation of IFRS results to core results (non-IFRS measure)
Three months ended June 30, 2026
Amortization Discontinuation Core
($ millions except of certain of the results
earnings per IFRS intangible PowerVision Efficiency Other (non-IFRS
share) results assets(1) programs(2) measures(6) items(9) measure)
------------------- ------- ------------ --------------- ----------- -------- ---------
Gross profit 1,675 124 -- -- -- 1,799
------------------- ------- ------------ --------------- ----------- -------- ---------
Operating income 11 128 402 33 -- 574
------------------- ------- ------------ --------------- ----------- -------- ---------
(Loss)/income
before taxes (46) 128 402 33 -- 517
------------------- ------- ------------ --------------- ----------- -------- ---------
Taxes(10) 46 (21) (115) (6) (11) (107)
------------------- ------- ------------ --------------- ----------- -------- ---------
Net income -- 107 287 27 (11) 410
------------------- ------- ------------ --------------- ----------- -------- ---------
Net income
attributable to:
------------------- ------- ------------ --------------- ----------- -------- ---------
Shareholders of
Alcon Inc. -- 107 287 27 (11) 410
------------------- ------- ------------ --------------- ----------- -------- ---------
Non-controlling
interests -- -- -- -- -- --
------------------- ------- ------------ --------------- ----------- -------- ---------
Basic earnings per
share ($)(11) 0.00 0.84 ------------------- ------- ------------ --------------- ----------- -------- --------- Diluted earnings per share ($)(11) 0.00 0.84 ------------------- ------- ------------ --------------- ----------- -------- --------- Basic - weighted average shares outstanding (millions)(11) 486.7 486.7 ------------------- ------- ------------ --------------- ----------- -------- --------- Diluted - weighted average shares outstanding (millions)(11) 488.7 488.7 ------------------- ------- ------------ --------------- ----------- -------- --------- Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables.
Three months ended June 30, 2025
Acquisition
Amortization and Core
($ millions except of certain integration results
earnings per IFRS intangible related Legal Product Other (non-IFRS
share) results assets(1) items(5) items(7) discontinuation(8) items(9) measure)
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Gross profit 1,388 172 -- -- 44 -- 1,604
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Operating income 247 173 10 17 44 -- 491
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Income before taxes 199 173 10 17 44 -- 443
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Taxes(10) (23) (32) (2) (4) (10) 8 (63)
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Net income 176 141 8 13 34 8 380
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Net income
attributable to:
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Shareholders of
Alcon Inc. 176 141 8 13 34 8 380
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Non-controlling
interests -- -- -- -- -- -- --
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Basic earnings per
share ($)(11) 0.36 0.77
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Diluted earnings
per share ($)(11) 0.35 0.76
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Basic - weighted
average shares
outstanding
(millions)(11) 495.2 495.2
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Diluted - weighted
average shares
outstanding
(millions)(11) 497.9 497.9
------------------- ------- ------------ ----------- -------- ------------------ -------- ---------
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results
(non-IFRS measure)' tables.
Six months ended June 30, 2026
Acquisition
Amortization Discontinuation and Core
($ millions except of certain of the integration results
earnings per IFRS intangible PowerVision related Efficiency Other (non-IFRS
share) results assets(1) programs(2) Impairments(3) items(5) measures(6) items(9) measure)
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Gross profit 3,200 251 -- 38 1 -- -- 3,490
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Operating income 303 257 402 38 21 121 1 1,143
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Income before taxes 194 257 402 38 21 121 1 1,034
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Taxes(10) (5) (44) (115) (6) (4) (23) (12) (209)
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Net income 189 213 287 32 17 98 (11) 825
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Net income
attributable to:
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Shareholders of
Alcon Inc. 189 213 287 32 17 98 (11) 825
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Non-controlling
interests -- -- -- -- -- -- -- --
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Basic earnings per
share ($)(11) 0.39 1.69
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Diluted earnings
per share ($)(11) 0.39 1.69
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Basic - weighted
average shares
outstanding
(millions)(11) 486.9 486.9
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Diluted - weighted
average shares
outstanding
(millions)(11) 489.4 489.4
------------------- ------- ------------ --------------- -------------- ----------- ----------- -------- ---------
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)'
tables.
Six months ended June 30, 2025
Gains on Acquisition
Amortization investments and Core
($ millions except of certain in integration results
earnings per IFRS intangible associated related Legal Product Other (non-IFRS
share) results assets(1) companies(4) items(5) items(7) discontinuation(8) items(9) measure)
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Gross profit 2,771 339 -- -- -- 44 -- 3,154
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Operating income 715 345 (142) 23 17 44 -- 1,002
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Income before taxes 613 345 (142) 23 17 44 5 905
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Taxes(10) (87) (62) -- (5) (4) (10) 8 (160)
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Net income 526 283 (142) 18 13 34 13 745
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Net income
attributable to:
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Shareholders of
Alcon Inc. 526 283 (142) 18 13 34 13 745
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Non-controlling
interests -- -- -- -- -- -- -- --
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Basic earnings per
share ($)(11) 1.06 1.50
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Diluted earnings
per share ($)(11) 1.06 1.50
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Basic - weighted
average shares
outstanding
(millions)(11) 495.2 495.2
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Diluted - weighted
average shares
outstanding
(millions)(11) 497.9 497.9
------------------- ------- ------------ ------------ ----------- -------- ------------------ -------- ---------
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS
measure)' tables.
Explanatory footnotes to IFRS to core reconciliation tables
(1) Includes amortization for all intangible assets other than software.
(2) For the three and six months ended June 30, 2026, includes a post-tax,
non-cash net charge of approximately $287 million related to the
discontinuation of the PowerVision programs, including $505 million
for the full impairment of an intangible asset, partially offset by
$103 million for a fair value adjustment to contingent consideration
liabilities and a $115 million tax benefit driven by the reversal of
deferred tax liabilities.
(3) Includes impairment charges related to a currently marketed product
intangible asset.
(4) For the six months ended June 30, 2025, includes gains on fair value
remeasurements of investments in associated companies.
(5) For the three months ended June 30, 2025, Operating income includes $9
million of direct acquisition costs and $1 million of integration
related costs related to acquisitions. Acquisition costs primarily
include third party professional services for legal and due diligence
fees. Integration related costs include third party professional
services and accelerated equity-based compensation expense.
For the six months ended June 30, 2026, Gross profit includes the
amortization of inventory fair value adjustments related to an
acquisition. Operating income also includes $20 million of direct
acquisition costs. Acquisition costs include third party professional
services for legal fees and other transaction related costs.
For the six months ended June 30, 2025, Operating income includes $16
million of direct acquisition costs and $7 million of integration
related costs related to acquisitions. Acquisition costs primarily
include third party professional services for legal, banker, due
diligence and accounting fees. Integration related costs include
severance of $3 million, accelerated equity-based compensation expense
of $3 million and third party professional services of $1 million.
(6) For the three and six months ended June 30, 2026, includes
restructuring costs, third party consulting fees and other direct
costs related to efficiency initiatives. These efficiency measures
were announced in February 2026 and implementation is expected to be
completed this year.
(7) For the three and six months ended June 30, 2025, includes provisions
for legal matters.
(8) For the three and six months ended June 30, 2025, includes charges
related to the discontinued commercialization of a product in the
Vision Care reportable segment, including $43 million for the full
impairment of the intangible asset and $1 million in related costs,
primarily related to inventory provisions.
(9) For the three months ended June 30, 2026, Operating income includes
the amortization of option rights, offset by fair value adjustments of
financial assets.
For the six months ended June 30, 2026, Operating income includes the
amortization of option rights, partially offset by fair value
adjustments of financial assets.
For the six months ended June 30, 2025, Income before taxes includes
core adjustments recognized for Aurion in Share of loss from
associated companies. The expenses were incurred upon change in
control from Alcon's acquisition of a majority interest in Aurion and
include accelerated equity-based compensation expense of $2 million,
third party professional services of $2 million for legal and
accounting fees and third party bank fees of $1 million.
(10) For the three months ended June 30, 2026, total tax adjustments of
$153 million include tax associated with operating income core
adjustments and discrete tax items. Tax associated with operating
income core adjustments of $563 million totaled $142 million with an
average tax rate of 25.2%. Core tax adjustments for discrete tax items
totaled $11 million.
For the three months ended June 30, 2025, total tax adjustments of $40
million include tax associated with operating income core adjustments,
partially offset by discrete tax items. Tax associated with operating
income core adjustments of $244 million totaled $48 million with an
average tax rate of 19.7%. Core tax adjustments for discrete tax items
totaled $8 million.
For the six months ended June 30, 2026, total tax adjustments of $204
million include tax associated with operating income core adjustments
and discrete tax items. Tax associated with operating income core
adjustments of $840 million totaled $192 million with an average tax
rate of 22.9%. Core tax adjustments for discrete tax items totaled $12
million.
For the six months ended June 30, 2025, total tax adjustments of $73
million include tax associated with operating income core adjustments,
partially offset by discrete tax items. Operating income core
adjustments totaled $287 million. Excluding the non-taxable gain of
$136 million on fair value remeasurement of Alcon's investment in
Aurion, core adjustments to operating income totaled $423 million. The
associated tax effect amounted to $81 million with an average tax rate
of 19.1%. Core tax adjustments for discrete tax items totaled $8
million.
(11) Core basic earnings per share is calculated using core net income
attributable to shareholders of Alcon Inc. and the weighted-average
shares of common stock outstanding during the period. Core diluted
earnings per share also contemplate dilutive shares associated with
unvested equity-based awards as described in Note 4 to the Condensed
Consolidated Interim Financial Statements.
EBITDA (non-IFRS measure)
Three months ended June 30 Six months ended June 30
---------------------------- ----------------------------
($ millions) 2026 2025 2026 2025
------------- -------- --- --------- --------- ---------
Net income -- 176 189 526
-------------- -------- --- --------- --------- ---------
Taxes (46) 23 5 87
-------------- -------- --------- --------- ---------
Depreciation
of property,
plant &
equipment 111 103 219 201
-------------- -------- --- --------- --------- ---------
Depreciation
of
right-of-use
assets 25 22 49 43
-------------- -------- --- --------- --------- ---------
Amortization
of intangible
assets 152 194 304 385
-------------- -------- --- --------- --------- ---------
Impairments of property, plant & equipment and intangible assets 505 43 543 43 -------------- -------- --- --------- --------- --------- Interest expense 53 51 105 100 -------------- -------- --- --------- --------- --------- Other financial income & expense -- (4) (2) (13) -------------- -------- --- --------- --------- --------- EBITDA 800 608 1,412 1,372 -------------- -------- --- --------- --------- ---------
Cash flow and net (debt)/liquidity (non-IFRS measure)
Six months ended June 30
------------------------------
($ millions) 2026 2025
------------------------------------------- ----------- ----------
Net cash flows from operating activities 928 889
-------------------------------------------- ----------- ----------
Net cash flows used in investing activities (440) (732)
-------------------------------------------- ----------- ----------
Net cash flows used in financing activities (643) (479)
-------------------------------------------- ----------- ----------
Effect of exchange rate changes on cash and
cash equivalents (17) 54
-------------------------------------------- ----------- ----------
Net change in cash and cash equivalents (172) (268)
-------------------------------------------- ----------- ----------
Change in derivative financial instrument
assets 10 (5)
-------------------------------------------- ----------- ----------
Change in time deposits with original
maturity greater than three months 21 (153)
-------------------------------------------- ----------- ----------
Change in current and non-current financial
debts 18 (102)
-------------------------------------------- ----------- ----------
Change in net (debt) (123) (528)
-------------------------------------------- ----------- ----------
Net (debt) at January 1 (3,125) (2,802)
-------------------------------------------- ----------- ----------
Net (debt) at June 30 (3,248) (3,330)
-------------------------------------------- ----------- ----------
Net (debt)/liquidity (non-IFRS measure)
($ millions) At June 30, 2026 At December 31, 2025 -------------------------------- ---------------- -------------------- Current financial debt (570) (575) -------------------------------- ---------------- -------------------- Non-current financial debt (4,149) (4,162) -------------------------------- ---------------- -------------------- Total financial debt (4,719) (4,737) -------------------------------- ---------------- -------------------- Less liquidity: -------------------------------- ---------------- -------------------- Cash and cash equivalents 1,355 1,527 -------------------------------- ---------------- -------------------- Time deposits with original maturity greater than three months 101 80 -------------------------------- ---------------- -------------------- Derivative financial instruments 15 5 -------------------------------- ---------------- -------------------- Total liquidity 1,471 1,612 -------------------------------- ---------------- -------------------- Net (debt) (3,248) (3,125) -------------------------------- ---------------- --------------------
Free cash flow (non-IFRS measure)
The following is a summary of free cash flow for the six months ended June 30, 2026 and 2025, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure:
Six months ended June 30
------------------------------
($ millions) 2026 2025
----------------------------------------- ---------- --- ---------
Net cash flows from operating activities 928 889
----------------------------------------- ---------- --- ---------
Purchase of property, plant & equipment (235) (208)
----------------------------------------- ---------- ---------
Free cash flow 693 681
----------------------------------------- ---------- --- ---------
About Alcon
Alcon helps people see brilliantly. As the global leader in eye care with a heritage spanning over 75 years, we offer the broadest portfolio of products to enhance sight and improve people's lives. Our Surgical and Vision Care products touch the lives of people in over 140 countries and territories each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors. Our more than 25,000 associates are enhancing the quality of life through innovative products, partnerships with Eye Care Professionals and programs that advance access to quality eye care. Learn more at www.alcon.com.
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CONTACT: Investor Relations
Daniel Cravens
Richard Bourne
+ 41 589 112 110 (Geneva)
+ 1 817 615 2789 (Fort Worth)
investor.relations@alcon.com
Media Relations
Steven Smith
+ 41 589 112 111 (Geneva)
+ 1 817 551 8057 (Fort Worth)
globalmedia.relations@alcon.com
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