Alcon Inc. (ALCC)

Equity Research 11 August 2026 | 4:58AM BST

Alcon Inc. (ALCC.S): Solid Q2 26 results with growth and margin expansion ahead of expectations; Buy

Alcon has reported solid Q2 26 results. Revenue growth accelerated sequentially to Richard Felton, CFA | +7% (modestly ahead of Visible Alpha Consensus Data) with management Goldman Sachs International highlighting traction for recent launches – Unity, Panoptix Pro, TRYPTYR. After the Lauren Mitchell impact of FX, net sales of $2,782m was +1% ahead consensus. Core gross margin | expanded by +250bps Y/Y, supported by manufacturing efficiencies, lower inventory Goldman Sachs International

write-offs and a $15m milestone payment from a licensee, leading to core gross profit of $1,799m being 4% ahead of consensus. We note Alcon has not realised any tariff refund impact in the P&L during Q2. The gross margin beat largely dropped through to core operating income which was +11% ahead of consensus. Core EPS of $0.84 was a 12% beat.

Tariff refunds drive FY26 margin/EPS guidance. Alcon have maintained their sales growth guidance of +5-7% cc (vs +6% VA consensus) but have upgraded their core operating margin expansion guidance to +90-190bps at constant FX (vs +70-170 bps previously). The upgraded margin guidance reflects anticipated $60m of US tariff refunds where management expects to reinvest approximately two-thirds back into the business; the net impact (c.$20m) is worth c.20bps. Management has also increased its outlook for constant currency core EPS growth to 12-15% (from 10-13% previously). Management now expect FX to be a +170bps tailwind to EPS growth. All else equal the midpoint of updated guidance implies low-single digit upgrades to consensus estimates in FY26, although given this is related to tariff refund we would not expect it to flow through to FY27.

Overall, we think these results are somewhat encouraging. The current investor debate on Alcon is largely focused on the trajectory of growth into H2 26 and FY27e and beyond. Whilst we expect the debate to continue to revolve around that topic into H2 26 (as comps get more challenging as Alcon laps the impact of launches), we think that the acceleration in growth in Q2 26 should be well-received and demonstrates sustained momentum across some of the key launches.

n Surgical sales grew +7% in c. FX terms in Q2 (vs +6.2% consensus) driving $1,570m sales +1% vs consensus. Implantables grew +1% c. FX in Q2 (vs 1.6% consensus) driving $466m sales broadly in line with expectations, with performance supported by PanOptix Pro and partially offset by competitive pressures in IOLs and lower sales in surgical glaucoma. Consumables grew +5% in Q2 (vs 5.1% consensus) driving $825m sales in line with expectations, driven

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Goldman Sachs Alcon Inc. (ALCC.S)

by procedural growth and price increases alongside continued softness in the cataract market. Equipment grew +25% in Q2 (vs 17.7% consensus) supporting $279m sales +6% ahead of consensus reflecting Unity equipment launches.

n Vision Care sales grew +7% in c. FX terms in Q2 (vs +6.8% consensus) leading to $1,212m Q2 sales in line with consensus. Contact lenses grew +5% (vs 4.9% consensus) driving $726m sales -1% below expectations as innovation and price increases were partially offset by declines in legacy products. Ocular Health grew +12% in Q2 (vs 10.1% consensus) driving $486m +2% ahead of consensus led by Tryptyr and Systane.

Based on our estimates, Alcon is trading on 18.8x 12m fwd P/E.

Exhibit 1: Q2 26 Reported vs GSe vs Consensus Reported GSe VA Consensus Reported vs GSe Reported vs Cons Q2 26 Q2 26e Q2 26e Q2 26e Q2 26e

Implantables / IOLs $m % -0.3% Organic growth % 1.0%…