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Alcon
(NYSE:ALC)
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Rating:62Neutral
Price Target:
CHF57.00
▼(-10.80% Downside)
Action:Reiterated
Date:05/10/26
The score is supported primarily by solid fundamentals (strong balance sheet and resilient multi-year operating profile) and constructive guidance with shareholder returns. It is held back by very weak technicals (downtrend with negative momentum) and a demanding valuation (high P/E with low dividend yield), alongside recent TTM profitability and free-cash-flow softness.
Positive Factors
Balance-sheet strength and low leverage
Low debt-to-equity and a sizable equity base provide durable financial flexibility to invest in R&D, absorb temporary shocks, and support capital returns. This conservatism limits solvency risk and underpins multi-year strategic programs like product launches and repurchases without forcing asset sales.
Negative Factors
TTM profit and free-cash-flow deterioration
A step-down in trailing net margin and meaningful FCF decline signal weakening earnings quality and cash conversion. Persistently lower cash generation reduces flexibility to fund organic investment and buybacks, raises sensitivity to cost shocks, and lengthens the time to re-lever growth initiatives.
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Positive Factors
Negative Factors
Balance-sheet strength and low leverage
Low debt-to-equity and a sizable equity base provide durable financial flexibility to invest in R&D, absorb temporary shocks, and support capital returns. This conservatism limits solvency risk and underpins multi-year strategic programs like product launches and repurchases without forcing asset sales.
Read all positive factors
Alcon (ALC) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF27.45B
Dividend Yield0.44%
Average Volume (3M)1.49M
Price to Earnings (P/E)40.3
Beta (1Y)1.05
Revenue Growth-3.08%
EPS Growth-33.39%
CountryCH
Employees25,599
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.65
Shares Outstanding499,700,000
10 Day Avg. Volume1,497,614
30 Day Avg. Volume1,491,704
Financial Highlights & Ratios
PEG Ratio39.53
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
CHF70.39Price Target Upside10.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.73
Revenue Forecast (FY)CHF8.74B
Alcon Business Overview & Revenue Model
Company Description
Alcon Inc. is a global eye care enterprise dedicated to the research, development, manufacturing, and distribution of a comprehensive range of vision products for both eye care professionals and their patients worldwide. The company operates throu...
How the Company Makes Money
Alcon primarily makes money by selling eye care products across two main segments: Surgical and Vision Care. In Surgical, revenue is generated from (1) capital equipment sales (e.g., ophthalmic surgical systems and diagnostic/surgical devices purc...
Alcon Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive picture: solid top-line growth across surgical, vision care and ocular health, strong early adoption and share gains from new product launches (Unity, PanOptix Pro, Tryptyr, Total30), a meaningful equipment acceleration and a shareholder-friendly $1.5B repurchase plan. Offsetting this optimism were market headwinds (soft cataract volumes, China weakness), tariff-driven margin pressure, modest operational disruptions (Hydrus supply, Middle East shipping) and near-term margin timing (Q2 SG&A peak). Management maintained full-year guidance (5%–7% sales growth; 70–170 bps core operating margin expansion) and positioned the back half of 2026 for stronger contribution from new products, implying overall confidence in durable growth despite short-term noise.Positive Updates
Revenue Growth Across Company
Q1 sales of $2.7 billion, up 6% year-over-year; guidance for constant currency sales growth of 5%–7% for 2026.
Negative Updates
Cataract Market Softness and Uneven Conditions
Global cataract/procedure volumes grew low single-digits with the U.S. surgical market softer in Q1; company guidance assumes current trends persist for 2026 and expects Q2 operating margin to be below prior year due to seasonality and launch investments.
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Q1-2026 Updates
Positive
Negative
Revenue Growth Across Company
Q1 sales of $2.7 billion, up 6% year-over-year; guidance for constant currency sales growth of 5%–7% for 2026.
Read all positive updates
Company Guidance
Alcon guided full‑year assumptions that aggregate eye‑care markets will grow 3–4% (at FX rates as of April‑end), and expects constant‑currency sales growth of 5–7%, core operating margin expansion of 70–170 basis points (with the majority of the improvement occurring in H2 and Q2 margin expected to be below last year due to seasonal SG&A), and core diluted EPS growth of 10–13%; the company now assumes an average U.S. import tariff rate of ~10% (vs. prior 15%), yielding an estimated $25 million reduction in tariff expense versus February guidance, with retaliatory tariffs unchanged and FX assumed to hold through year‑end; the Board approved a $1.5 billion share‑repurchase program over three years and shareholders approved a $0.28 per‑share dividend to be paid around May 7.Alcon Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.60B | 10.90B | 9.91B | 9.46B | 8.72B | 8.29B |
| Gross Profit | 5.87B | 6.02B | 5.51B | 5.25B | 4.75B | 4.65B |
| EBITDA | 2.25B | 2.78B | 2.68B | 2.24B | 1.72B | 1.76B |
| Net Income | 816.64M | 1.03B | 1.02B | 974.00M | 335.00M | 376.00M |
Balance Sheet | ||||||
| Total Assets | 31.71B | 31.53B | 30.35B | 29.61B | 29.21B | 28.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.61B | 1.83B | 1.10B | 980.00M | 1.58B |
| Total Debt | 5.25B | 5.67B | 5.14B | 5.13B | 5.07B | 4.48B |
| Total Liabilities | 9.51B | 9.51B | 8.79B | 8.99B | 9.53B | 8.74B |
| Stockholders Equity | 22.20B | 22.02B | 21.55B | 20.62B | 19.68B | 19.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.71B | 1.81B | 1.41B | 537.00M | 472.00M | 165.00M |
| Operating Cash Flow | 2.27B | 2.38B | 2.08B | 1.39B | 1.22B | 1.34B |
| Investing Cash Flow | -972.94M | -1.44B | -1.17B | -1.09B | -1.86B | -1.20B |
| Financing Cash Flow | -1.13B | -1.14B | -322.00M | -211.00M | -8.00M | -123.00M |
Alcon Technical Analysis
Positive
63.90
Price Trends
53.62
Positive
57.60
Negative
59.55
Negative
Market Momentum
0.40
Negative
56.28
Neutral
64.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ALC, the sentiment is Positive. The current price of 63.9 is above the 20-day moving average (MA) of 53.81, above the 50-day MA of 53.62, and above the 200-day MA of 59.55, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | CHF228.38B | 22.46 | ― | 3.18% | -4.75% | -1.04% | |
71 Outperform | CHF17.28B | 47.24 | ― | 1.02% | 4.05% | -7.94% | |
71 Outperform | CHF11.93B | 28.69 | ― | 2.14% | -6.71% | -20.30% | |
63 Neutral | CHF41.88B | 81.79 | ― | 0.09% | 11.15% | 150.71% | |
62 Neutral | CHF27.45B | 40.28 | 3.69% | 0.44% | -3.08% | -33.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:ALC
Alcon
54.24
-14.05
-20.57%
CH:NOVN
Novartis AG
126.80
32.13
33.94%
CH:STMN
Straumann Holding AG
106.30
1.66
1.59%
CH:SOON
Sonova Holding AG
207.40
-18.27
-8.09%
CH:GALD
Galderma Group AG
176.55
50.53
40.09%
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.