Alcon Inc. (ALCC)

Equity Research 24 July 2026 | 5:01AM BST

Alcon Inc. (ALCC.S) Contextualising 2H growth estimates; Buy

ALCC.S 12m Price Target: SFr74.00 Price: SFr54.70 Upside: 35.3% BUY ALC 12m Price Target: $91.00 Price: $67.21 Upside: 35.4% Richard Felton, CFA | Goldman Sachs International Post softer-than-expected Q1 26 results, a key theme of our Lauren Mitchell investor conversations on Alcon has been a growing skepticism in | Goldman Sachs International the company’s ability to deliver the ~6% constant FX growth (mid-point of FY26 guidance and Visible Alpha consensus expectations), especially in light of a tougher comp base in H2 26 as Alcon laps key product launches. We continue to forecast ~6% constant FX growth and believe the following points are helpful to Key Data _____________________________________ Market cap: SFr27.0bn / $33.0bn contextualise the growth trajectory and our estimates: Enterprise value: SFr29.9bn / $36.6bn 3m ADTV: SFr87.3mn / $109.9mn Switzerland (1) Growing contribution from innovation / launches; with Europe MedTech M&A Rank: 3 internationalisation of key products. We expect incremental benefit from Leases incl. in net debt & EV?: Yes geographic expansion of key product launches (Unity CS, Panoptix Pro) GS Forecast __________________________________ through Q2 / H2 26. 12/25 12/26E 12/27E 12/28E Revenue ($ mn) New 10,401.0 11,201.6 11,988.1 12,796.0 Revenue ($ mn) Old 10,401.0 11,259.5 12,050.1 12,862.2 (2) Through the lens of 2- and 3-year stacked momentum, GSe / EBIT ($ mn) 2,039.0 2,361.9 2,653.2 2,957.8 consensus estimates imply growth consistent with underlying growth EPS ($) New EPS ($) Old momentum for Consumables and Contacts; underlying acceleration in P/E (X) Implantables, Equipment and Ocular Health well underpinned our view. Dividend yield (%) 0.4 1.1 1.2 1.4 CROCI (%) 6.1 5.6 6.1 6.5 N debt/EBITDA (ex lease,X) ) Taking a step back, we do believe it is important to note that management started the year guided for balanced growth through the 3/26 6/26E 9/26E 12/26E EPS ($) year. Clearly Q1 26 results fell short of market expectations, but was GS Factor Profile ______________________________ consistent with messaging from management. Growth

Based on GS estimates, the stock now trades on 17.3x 12-month Financial Returns

forward P/E, having derated from c.23x in mid-April as investors Multiple

appear to have generally become more cautious on the growth Integrated outlook for Alcon. We believe delivery on FY26 guidance and updates to support an acceleration into FY27 (for instance Medicare Percentile 20th 40th 60th 80th 100th

coverage for TRYPTYR) could alleviate those concerns. Marking to ALCC.S relative to Europe Coverage market for latest FX, our revenue/EBIT/EPS estimates are -1% across ALCC.S relative to Europe MedTech

FY26-28e. Our 12m TP is unchanged; we are Buy rated. Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Alcon Inc. (ALCC.S)

Alcon Inc. (ALCC.S) Balance Sheet ($ mn) _______________________________________ BUY Rating since Apr 10, 2024 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,527.0 1,243.2 1,018.4 1,140.1 Accounts receivable 1,962.0 1,953.4 2,056.3 2,193.6 Inventory 2,391.0 2,466.7 2,594.4 2,706.2 Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 6,449.0 6,232.4 6,238.2 6,608.9 EV/sales (X) 4.4 3.2 2.9 2.7 Net PP&E 5,221.0 5,283.5 5,369.5 5,466.9 EV/EBITDAR (X) Net intangibles 18,262.0 17,771.2 17,265.4 16,747.4 EV/EBITDA (excl. leases) (X) Total investments 0.0 0.0 0.0 0.0 EV/EBIT (X) Other long-term assets 1,623.0 2,091.4…