Alcon (ALC) AI Stock Analysis

• Market Cap: $30.83B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.93
• Revenue Growth: 0.39%
• EPS Growth: -12.46%
• Country: CH
• Employees: 25,599
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.63
• Shares Outstanding: 499,700,000
• 10 Day Avg. Volume: 1,557,836
• 30 Day Avg. Volume: 1,349,184
• PEG Ratio: 10.18
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 29.76
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 16.04
• 1Y Price Target: $76.50
• Price Target Upside: 27.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 2.46
• Revenue Forecast (FY): $8.25B

• Rating: 73 Outperform
• Price Target: CHF69.00 ▲(15.12% Upside)

Alcon's strong financial performance and positive earnings call guidance are the primary drivers of its stock score. However, the high valuation and mixed technical indicators temper the overall outlook. The company's focus on innovation and growth in vision care are positive, but challenges such as tariff impacts and market conditions in cataracts present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong product demand and effective market strategies, supporting long-term business expansion.

Innovation in Product Launches

Successful product launches like Unity VCS enhance competitive positioning and drive future revenue, reflecting a robust R&D pipeline.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Gross Margin Pressure

Decreasing gross margins due to tariffs could impact profitability and limit financial resources for reinvestment in growth.

Challenges in Cataract Markets

Slower growth in cataract markets may hinder revenue expansion in a key segment, affecting overall business performance.

Operating Margin Decline

Declining operating margins due to increased R&D investment and tariffs may pressure profitability and strategic flexibility.

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, 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.

How the Company Makes Money

Alcon generates revenue through its diverse product lines within the Surgical and Vision Care segments. The Surgical segment earns money primarily from the sale of surgical equipment, consumables, and intraocular lenses used in cataract and refractive surgeries. The Vision Care segment's revenue comes from the sale of daily, weekly, and monthly contact lenses, as well as lens care solutions. The company also benefits from partnerships with healthcare providers and hospitals, which often utilize Alcon's products in surgical procedures. Additionally, Alcon invests in research and development to introduce new products and technologies, thereby expanding its market share and enhancing its earnings potential.

Alcon Financial Statement Overview

Summary

Alcon demonstrates strong financial health with robust revenue and profit growth, improving margins, low leverage, and exceptional cash generation. The income statement, balance sheet, and cash flow statement collectively suggest Alcon is well-positioned for sustained growth and financial stability.

Income Statement

Alcon's income statement shows strong growth and profitability. The gross profit margin increased to 55.6%, indicating efficient cost management. Net profit margin improved to 10.3%, reflecting robust earnings growth. Revenue growth rate from the previous year was 4.8%, maintaining a positive trajectory. EBIT margin increased to 14.3% and EBITDA margin to 27.0%, suggesting enhanced operational efficiency. Overall, Alcon's income statement reflects a solid financial performance with improving margins and consistent revenue growth.

Balance Sheet

Alcon's balance sheet is stable with a debt-to-equity ratio of 0.24, indicating a low level of leverage, which reduces financial risk. Return on equity improved to 4.7%, showing better utilization of equity. The equity ratio is strong at 71.0%, underscoring a robust financial structure. The balance sheet reflects a well-capitalized company with low reliance on debt, although there is room for improvement in returns to shareholders.

Cash Flow

Alcon's cash flow statement is very strong, with a significant free cash flow growth rate of 161.9%, highlighting excellent cash generation. The operating cash flow to net income ratio is 2.04, indicating efficient cash conversion. The free cash flow to net income ratio of 1.38 further confirms strong cash flow management. Overall, the cash flow statements point to excellent liquidity and financial flexibility, supporting future growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.03B	9.91B	9.46B	8.72B	8.29B	6.83B
Gross Profit	5.53B	5.51B	5.25B	4.75B	4.65B	2.94B
EBITDA	2.02B	2.68B	2.24B	1.72B	1.76B	1.11B
Net Income	1.07B	1.02B	974.00M	335.00M	376.00M	-531.00M
Balance Sheet
Total Assets	31.39B	30.35B	29.61B	29.21B	28.00B	27.60B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.83B	1.10B	980.00M	1.58B	1.57B
Total Debt	5.25B	5.14B	5.13B	5.07B	4.48B	4.50B
Total Liabilities	9.26B	8.79B	8.99B	9.53B	8.74B	8.78B
Stockholders Equity	22.11B	21.55B	20.62B	19.68B	19.26B	18.82B
Cash Flow
Free Cash Flow	1.62B	1.41B	537.00M	472.00M	165.00M	256.00M
Operating Cash Flow	2.10B	2.08B	1.39B	1.22B	1.34B	823.00M
Investing Cash Flow	-1.55B	-1.17B	-1.09B	-1.86B	-1.20B	-572.00M
Financing Cash Flow	-564.00M	-322.00M	-211.00M	-8.00M	-123.00M	466.00M

Alcon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 59.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 59.94 is below the 20-day moving average (MA) of 60.56, below the 50-day MA of 60.56, and below the 200-day MA of 70.79, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 45.25 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOVN	80 Outperform	CHF193.14B	16.27	―	3.31%	7.62%	-18.33%
ALC	73 Outperform	$30.83B	33.95	4.82%	0.46%	0.39%	-12.46%
ROG	73 Outperform	$229.33B	24.15	31.98%	3.16%	4.77%	-11.07%
STMN	72 Outperform	CHF15.66B	39.87	―	1.00%	4.49%	45.08%
GALD	69 Neutral	CHF34.38B	105.96	―	0.10%	6.22%	―
SOON	68 Neutral	CHF12.41B	23.78	―	2.20%	3.79%	-7.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Alcon Corporate Events

Alcon Reports Strong Q3 2025 Growth in Eye Care

Alcon is a leading global eye care company, renowned for its extensive range of surgical and vision care products that improve sight and quality of life for individuals worldwide. In its latest earnings report, Alcon announced a robust performance for the third quarter of 2025, with sales reaching $2.6 billion, marking a 6% increase from the previous year. The company also reported a diluted earnings per share of $0.48 and a core diluted earnings per share of $0.79, alongside a strong cash flow from operations.

Alcon’s Earnings Call: Growth Amid Challenges

Alcon’s recent earnings call painted a picture of a company navigating both triumphs and trials. The sentiment was largely positive, driven by strong product launches and growth in the vision care segment. However, challenges such as gross margin pressures and market conditions in cataracts were also highlighted. The company’s strategic focus on innovation and product differentiation is fostering positive momentum, although external pressures, particularly from tariffs and market dynamics, present ongoing challenges.

Alcon Reports Strong Q3 2025 Results with Equipment Growth

Alcon Inc. reported strong financial results for the third quarter of 2025, with sales reaching $2.6 billion, marking a 6% increase compared to the same period in 2024. The company’s growth was driven by accelerated performance in equipment and ocular health, with notable progress in its Unity VCS platform. Alcon maintained its full-year guidance and highlighted promising developments with its PanOptix Pro and Tryptyr products, indicating a solid foundation for 2026.

The most recent analyst rating on (CH:ALC) stock is a Buy with a CHF80.00 price target. To see the full list of analyst forecasts on Alcon stock, see the CH:ALC Stock Forecast page.

Alcon’s Strategic Moves: Q2 2025 Results and STAAR Acquisition

On August 19, 2025, Alcon reported its second-quarter 2025 financial results, highlighting a 4% increase in sales compared to the previous year, reaching $2.6 billion. The company launched Tryptyr, a new treatment for dry eye disease, and announced the acquisition of STAAR Surgical to enhance its offerings in myopia correction. These strategic moves aim to strengthen Alcon’s market position and expand its product portfolio, potentially benefiting shareholders and patients alike.

The most recent analyst rating on (CH:ALC) stock is a Buy with a CHF79.00 price target. To see the full list of analyst forecasts on Alcon stock, see the CH:ALC Stock Forecast page.