Alcon Inc (CH:ALC)
:ALC
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Alcon
(ALC)
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Rating:72Outperform
Price Target:
CHF66.00
▲(7.14% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid fundamentals (steady growth, healthy profitability, improving free cash flow, and manageable leverage) and supportive technical momentum (price above major moving averages with positive MACD). These positives are tempered by an expensive valuation (high P/E with low yield) and near-term execution/margin risks noted on the earnings call, including tariff impacts and competitive pressures.
Positive Factors
Recurring Consumables & Vision Care
Alcon’s mix pairs capital equipment with high-frequency consumables and contact-lens replenishment, creating durable revenue visibility and attachment economics. Procedure-linked consumable demand supports steady cash flow and margins, reducing volatility from lumpy equipment sales.
Negative Factors
Persistent Tariff Headwinds
Ongoing elevated U.S. import tariffs (management models ~15%) are a structural cost headwind that raise COGS and compress gross margins absent offsetting price or mix changes. Tariff exposure adds persistent margin volatility and creates uncertainty for medium-term margin recovery plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables & Vision Care
Alcon’s mix pairs capital equipment with high-frequency consumables and contact-lens replenishment, creating durable revenue visibility and attachment economics. Procedure-linked consumable demand supports steady cash flow and margins, reducing volatility from lumpy equipment sales.
Read all positive factors
Alcon (ALC) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF30.78B
Dividend Yield0.44%
Average Volume (3M)862.79K
Price to Earnings (P/E)38.3
Beta (1Y)1.00
Revenue Growth0.39%
EPS Growth-12.46%
CountryCH
Employees25,599
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.60
Shares Outstanding499,700,000
10 Day Avg. Volume711,835
30 Day Avg. Volume862,789
Financial Highlights & Ratios
PEG Ratio39.50
Price to Book (P/B)1.79
Price to Sales (P/S)3.61
P/FCF Ratio21.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF76.50Price Target Upside24.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)2.68
Revenue Forecast (FY)CHF8.68B
Alcon Business Overview & Revenue Model
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...
How the Company Makes Money
Alcon makes money by selling eye care products and related services across two main revenue streams: (1) Surgical and (2) Vision Care.
1) Surgical revenue (ophthalmic surgery)
- Capital equipment sales: Alcon sells large ophthalmic surgical syste...
Alcon Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive underlying operational story: broad-based top-line growth across Surgical, Vision Care, and Ocular Health, successful new-product introductions (Unity, PanOptix Pro, Truqtra, Total30 expansions), strong free cash flow and accelerated shareholder returns, and explicit guidance for margin improvement and EPS growth in 2026. Offsetting these positives are notable near-term headwinds — tariff-related charges, margin compression in the quarter, an increasingly competitive IOL environment (with China and some international softness), and execution/phasing uncertainty as equipment and new-product ramps continue. On balance, the highlights (strong revenue growth, successful launches, robust cash generation, and disciplined capital allocation plus a clear plan to drive margins) outweigh the lowlights, though management is appropriately cautious on guidance and market visibility.Positive Updates
Strong Overall Revenue Growth
Q4 sales of $2.7 billion, up 7% versus prior year; full-year momentum with management exiting 2025 on a stronger rate.
Negative Updates
Gross and Operating Margin Pressure
Q4 core gross margin 62.5%, down 50 basis points YoY; core operating margin 19.0%, down 160 basis points YoY — driven by tariff-related costs, increased sales & marketing investments behind new launches, and higher R&D spend.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Overall Revenue Growth
Q4 sales of $2.7 billion, up 7% versus prior year; full-year momentum with management exiting 2025 on a stronger rate.
Read all positive updates
Company Guidance
Alcon’s 2026 guidance assumes aggregate eye‑care market growth of 3–4%, January exchange rates holding, and an average U.S. import tariff rate of ~15% (retaliatory tariffs unchanged); management expects 2026 sales growth of 5–7% (constant currency), with sales relatively level‑loaded and the second half more profitable than the first. They expect 2026 core gross margin to be broadly similar to 2025 (Q4 core gross margin was 62.5%), R&D of ~9% of sales, and have announced efficiency measures targeting $100M of annualized run‑rate savings (about $50M realized in 2026 at a one‑time cost of ~$150M) that should drive full‑year core operating‑margin expansion of ~70–170 basis points (Q4 core operating margin was 19%). On the bottom line they expect core diluted EPS growth of 9–12% (constant currency); 2025 free cash flow was $1.7B (114% of core net income), 2025 tariff‑related charges were $91M ($67M in cost of sales), interest expense in Q4 was $53M, and capital returns in 2025 totaled $848M (share repurchases $682M, dividends $166M) with the $750M repurchase program completed in January and a proposed dividend of $0.28/share.Alcon Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.90B | 9.91B | 9.46B | 8.72B | 8.29B |
| Gross Profit | 6.02B | 5.51B | 5.25B | 4.75B | 4.65B |
| EBITDA | 2.78B | 2.68B | 2.24B | 1.72B | 1.76B |
| Net Income | 1.03B | 1.02B | 974.00M | 335.00M | 376.00M |
Balance Sheet | |||||
| Total Assets | 31.53B | 30.35B | 29.61B | 29.21B | 28.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.61B | 1.83B | 1.10B | 980.00M | 1.58B |
| Total Debt | 5.67B | 5.14B | 5.13B | 5.07B | 4.48B |
| Total Liabilities | 9.51B | 8.79B | 8.99B | 9.53B | 8.74B |
| Stockholders Equity | 22.02B | 21.55B | 20.62B | 19.68B | 19.26B |
Cash Flow | |||||
| Free Cash Flow | 1.81B | 1.41B | 537.00M | 472.00M | 165.00M |
| Operating Cash Flow | 2.38B | 2.08B | 1.39B | 1.22B | 1.34B |
| Investing Cash Flow | -1.44B | -1.17B | -1.09B | -1.86B | -1.20B |
| Financing Cash Flow | -1.14B | -322.00M | -211.00M | -8.00M | -123.00M |
Alcon Technical Analysis
Neutral
61.60
Price Trends
61.70
Negative
62.48
Negative
63.71
Negative
Market Momentum
-0.40
Negative
54.20
Neutral
65.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ALC, the sentiment is Neutral. The current price of 61.6 is above the 20-day moving average (MA) of 60.00, below the 50-day MA of 61.70, and below the 200-day MA of 63.71, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:ALC.
Alcon Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF222.29B | 18.30 | ― | 3.18% | 7.62% | -18.33% | |
72 Outperform | CHF30.78B | 38.35 | 4.44% | 0.44% | 0.39% | -12.46% | |
68 Neutral | CHF10.51B | 17.11 | ― | 2.14% | 3.79% | -7.84% | |
66 Neutral | CHF13.44B | 41.72 | ― | 1.02% | 4.49% | 45.08% | |
63 Neutral | CHF37.52B | 28.64 | ― | 0.09% | 6.22% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:ALC
Alcon
61.60
-12.26
-16.60%
CH:NOVN
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121.76
35.64
41.39%
CH:STMN
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84.30
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-13.16%
CH:SOON
Sonova Holding AG
182.70
-48.87
-21.10%
CH:GALD
Galderma Group AG
159.80
81.33
103.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.