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1. Company Snapshot

1.a. Company Description

Alcon Inc., an eye care company, researches, develops, manufactures, distributes, and sells eye care products for eye care professionals and their patients worldwide.The company's Surgical segment offers equipment, instrumentation and diagnostics, intraocular lenses (IOLs), and other implantables; and consumables, including viscoelastics, surgical solutions, incisional instruments, surgical custom packs, and other products for use in surgical procedures.Its cataract products include centurion vision system, LenSx femtosecond laser, LuxOR surgical ophthalmic microscope, NGENUITY 3D visualization system, and ORA system for intra-operative measurements; custom pak surgical procedure packs; vitreoretinal products comprising constellation vision systems, procedure packs, lasers and hand-held microsurgical instruments, and grieshaber and MIVS instruments, as well as scissors, forceps and micro-instruments, medical grade vitreous tamponades, and Hypervit vitrectomy probes; refractive surgery products, including WaveLight lasers and Contoura Vision used for LASIK treatment; EX-PRESS glaucoma filtration device; and implantables products, including AcrySof IQ IOLs products include monofocal IOLs and advanced technology IOLs under the PanOptix and ReSTOR brands for the correction of presbyopia and astigmatism at the time of cataract surgery.


Its Vision Care segment provides daily disposable, reusable, and color-enhancing contact lenses; ocular health products, such as dry eye, glaucoma, contact lens care, and ocular allergies; and ocular vitamins and redness relievers under the TOTAL, PRECISION, DAILIES AquaComfort PLUS, Air Optix, Opti-Free, Clear Care, Tears Naturale, Genteal, ICAPS, and Vitalux brands.The company was formerly known as Alcon Universal S.A. and changed the name to Alcon Inc.in December 2001.


Alcon Inc.was founded in 1945 and is headquartered in Geneva, Switzerland.

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1.b. Last Insights on ALC

Alcon Inc.'s recent performance has been negatively impacted by dismal earnings and a soft outlook for full-year 2025. The company's Q2 earnings beat estimates, but revenues fell short, leading to a 10% stock plunge. Margin pressures and narrowed 2025 sales outlook also contributed to the decline. Additionally, investors are reassessing the company's valuation following recent share price weakness. Despite a 2% stock rise in the past month, Alcon's shares are down over 14% in the past 3 months. The company's steady guidance and expanding sales may offset profit pressures.

1.c. Company Highlights

2. Alcon's Q3 Earnings: Steady Growth Amidst Tariff Pressures

Alcon reported third-quarter sales of $2.6 billion, a 5% year-over-year increase, driven by growth in both Surgical and Vision Care franchises. The Surgical segment saw revenue rise 5% to $1.4 billion, with implantable sales up 2% to $432 million and consumables up 5% to $745 million. The core gross margin was 62.9%, down 50 basis points, primarily due to incremental tariffs. Core diluted earnings per share were $0.79, a $0.02 decrease from the previous year. The company's actual EPS of $0.637 beat estimates of $0.619.

Publication Date: Nov -13

📋 Highlights
  • Q3 Sales Growth:: Revenue reached $2.6 billion, a 5% YoY increase, driven by Surgical ($1.4B, +5%) and Vision Care ($1.2B, +5%) segments.
  • Surgical Equipment Surge:: Equipment sales jumped 13% to $243 million, fueled by the Unity VCS launch, while implantable sales grew 2% to $432 million.
  • Vision Care Momentum:: Contact lens sales rose 5% to $707 million, and ocular health sales increased 6% to $462 million, contributing to Vision Care’s 5% growth.
  • Margin Pressures:: Core gross margin fell 50 bps to 62.9% due to tariffs, while core operating margin dropped 60 bps to 20.2%, with EPS declining $0.02 to $0.79.
  • Full-Year Guidance:: Sales projected at $10.3–$10.4 billion, core diluted EPS at $3.05–$3.15, with 2026 tariff impacts expected to cost $50–$100 million.

Segment Performance

The Vision Care segment also reported a 5% increase in sales to $1.2 billion, driven by a 5% rise in contact lens sales to $707 million and a 6% increase in ocular health sales to $462 million. The company's equipment sales saw significant growth, up 13% to $243 million, driven by the launch of Unity VCS. The U.S. market grew 6%, while international markets were weaker, particularly in Japan and Europe.

Guidance and Outlook

Alcon reaffirmed its full-year guidance, expecting sales to be between $10.3 billion and $10.4 billion and core diluted EPS of $3.05 to $3.15. The company anticipates continued acceleration from new product launches, including Unity VCS and CS, Tryptyr, PanOptix Pro, and Precision7. However, it expects a net incremental impact from tariffs of roughly $50 million to $100 million in 2026. Analysts estimate next year's revenue growth at 7.8%.

Valuation Metrics

With a P/E Ratio of 36.66 and an EV/EBITDA of 24.92, Alcon's valuation appears to be priced for growth. The company's ROE of 4.93% and ROIC of 4.24% indicate a relatively stable return profile. The market seems to be pricing in a certain level of growth, and it will be essential to monitor the company's ability to deliver on its guidance and navigate challenges such as tariffs and competition.

Product Updates and Strategy

The company is bullish on surgical glaucoma and has expanded its sales force for Hydrus, combining it with their IOL sales force. They are also creating a new group to sell their Voyager and Valeda products to glaucoma specialists. Tryptyr, an eye care product, is performing better than expectations, with strong uptake and patient response attributed to its unique efficacy mechanism.

3. NewsRoom

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Broadwood reiterates push for STAAR Surgical board shake-up as Alcon vote nears

Dec -03

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Intraocular Lens Market Competitor Analysis Report 2025: Recent Developments, Strategy, Sustainability Benchmarking, Product Launch, Key Persons and Revenue

Dec -03

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Broadwood Partners Working to Call Special Meeting of STAAR Surgical Shareholders to Remove Three Directors

Dec -02

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Opterion Health AG Announces Appointment of Andreas Schuh as Chief Financial Officer

Dec -01

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Alcon's (VTX:ALC) Anemic Earnings Might Be Worse Than You Think

Nov -19

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STAAR Surgical reveals board dissent over amended Alcon deal ahead of vote

Nov -18

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Company News for Nov 13, 2025

Nov -13

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Can Alcon’s (SWX:ALC) Steady Guidance Offset Profit Pressures Amid Expanding Sales?

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.10%)

6. Segments

Surgical

Expected Growth: 7.5%

The Surgical segment is expected to grow at a rate slightly higher than the global average (7.1%) due to the increasing prevalence of cataracts and other eye conditions requiring surgical intervention, coupled with advancements in surgical technology. The demand for premium intraocular lenses and advanced surgical systems is on the rise, driven by an aging population and improvements in healthcare infrastructure.

Vision Care

Expected Growth: 6.8%

The Vision Care segment is anticipated to grow, albeit at a slightly lower rate than the Surgical segment, due to the competitive landscape and the maturity of certain product categories. However, innovations in contact lens materials and designs, along with an expanding global population requiring vision correction, will support growth. The expected growth rate is 6.8%, slightly below the global average, reflecting a more stable and less technologically disruptive market compared to Surgical.

7. Detailed Products

Surgical

Alcon's surgical portfolio includes a range of products for cataract, refractive, and glaucoma surgeries, such as intraocular lenses, phacoemulsification systems, and viscoelastics.

Vitreoretinal

Alcon's vitreoretinal portfolio includes products for the treatment of retinal diseases, such as vitrectomy machines, retinal implants, and surgical instruments.

Contact Lenses

Alcon's contact lens portfolio includes a range of daily, monthly, and color contact lenses for correcting vision and enhancing eye health.

Ocular Health

Alcon's ocular health portfolio includes products for the treatment of dry eye, glaucoma, and other eye conditions, such as lubricating eye drops and anti-inflammatory medications.

Intraocular Lenses

Alcon's intraocular lens portfolio includes a range of lenses for cataract surgery, including monofocal, multifocal, and toric lenses.

8. Alcon Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alcon Inc. faces moderate threat from substitutes as there are limited alternatives available for its ophthalmic products. However, the company's strong brand presence and patented products reduce the threat of substitutes.

Bargaining Power Of Customers

Alcon Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to the operations of its customers, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Alcon Inc. relies on a few key suppliers for raw materials and components. While the company has some bargaining power due to its large scale, suppliers may still have some negotiating power due to the specialized nature of the products.

Threat Of New Entrants

The ophthalmic industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized manufacturing facilities. This reduces the threat of new entrants.

Intensity Of Rivalry

The ophthalmic industry is highly competitive, with several established players competing for market share. Alcon Inc. faces intense competition from companies such as Johnson & Johnson, Bausch + Lomb, and CooperVision.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.93%
Debt Cost 4.24%
Equity Weight 80.07%
Equity Cost 7.50%
WACC 6.85%
Leverage 24.90%

11. Quality Control: Alcon Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.4$

Current Price

65.4$

Potential

-0.00%

Expected Cash-Flows