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Alcon: Alcon's Q4 2025 Earnings: A Closer Look

Alcon Inc.'s fourth quarter 2025 sales were $2.7 billion, up 7% year over year, driven by growth in both Surgical and Vision Care franchises. The company's core gross margin was 62.5%, down 50 basis points year over year, mainly driven by incremental tariffs. Core operating margin was 19%, down 160 basis points. Diluted earnings were $0.78 per share in the quarter, slightly above estimates. For 2026, Alcon expects sales growth of 5% to 7%, with aggregate eye care markets growing 3% to 4%, and core diluted EPS growth of 9% to 12%.

ALC.SW

CHF 68.22

1.73%

A-Score: 4.0/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Fourth Quarter 2025 Sales Growth Alcon reported $2.7 billion in sales, a 7% YoY increase, with Surgical revenue at $1.5 billion (+6%) and Vision Care at $1.2 billion (+7%).
  • Margin Pressures and Earnings Core gross margin declined to 62.5% (-50 bps YoY), and core operating margin fell to 19% (-160 bps YoY), with diluted EPS at $0.78 per share.
  • 2026 Guidance The company projects 5-7% sales growth and 9-12% core diluted EPS growth, with $100 million in annualized cost savings and a proposed $0.28 per share dividend.
  • Truqtra Sales Outlook Truqtra’s peak sales are expected to reach $250-400 million, with management leaning toward the higher end of the range.
  • Unity Equipment Impact Unity contributed to an 18% growth in Equipment sales, with strong visibility into contract funnel and high demand for the system.

Segment Performance

In Surgical, revenue was up 6% to $1.5 billion, with Implantable sales at $474 million, up 2%, and Consumables sales at $794 million, up 5%. Vision Care sales were up 7% to $1.2 billion, with Contact Lens sales up 4% to $683 million and Ocular Health sales up 12% to $474 million, led by the strength of dry eye portfolio, including Truqtra and Systane. David Endicott mentioned that markets improved in Q4 but aren't back to normal yet, with the Surgical market finishing at 3%, and Vision Care at 4%.

Guidance and Outlook

For 2026, Alcon expects to achieve $100 million in annualized run-rate savings, with about $50 million realized in 2026. The company has proposed a dividend of $0.28 per share. The guidance range is wide due to market dynamics and new product trajectory. The company expects 3-4% market growth and new product flow to drive revenues between 5-7% constant currency growth. Analysts estimate next year's revenue growth at 6.6%.

Valuation Metrics

With a P/E Ratio of 40.64 and an EV/EBITDA of 26.08, Alcon's valuation suggests that the market is pricing in a certain level of growth. The company's ROE (%) is 4.77, and ROIC (%) is 4.16. The actual EPS came out at $0.588 relative to estimates at $0.603. The Dividend Yield is 0.39%, and Free Cash Flow Yield is 3.6%.

Product Pipeline

The company is excited about its product pipeline, including Voyager, a laser system for glaucoma treatment, and WaveLight and WaveLight Plus for refractive surgery. The company is also launching new products, such as PanOptix Pro in Japan and Australia, and expects growth to be in line with the market. Truqtra is also showing promise, with peak sales expected to be in the $250-400 million range.

China Market

China accounts for around 5-6% of the company's Implantables business, mostly surgical. The company expects Volume-Based Procurement (VBP) to be tough, with some price erosion. They expect to be roughly flat year-over-year, with volume growth offsetting price erosion. The company does not currently produce in China but may consider moving some equipment production there due to the "Buy China" rule.

Alcon's A-Score