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Alcon
(NYSE:ALC)
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Rating:71Outperform
Price Target:
CHF65.00
▲(16.61% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by solid underlying financial quality (growth, conservative leverage, improving free cash flow) and a notably positive earnings call with raised profitability/EPS expectations. These strengths are tempered by a high valuation (P/E ~55.8, low yield) and evidence of recent TTM margin/ROE compression, while technicals are supportive but not decisively above the long-term (200-day) trend.
Positive Factors
Broad-based growth and market share
Growth across Surgical and Vision Care reduces reliance on one product or market. Record contact-lens share, strong UNITY adoption and broad geographic performance support durable customer relationships and recurring demand from procedures and replacement cycles.
Negative Factors
Recent profitability and returns have weakened
The decline in net margin and ROE indicates that recent revenue growth has not translated fully into shareholder returns. If operating costs, pricing pressure or mix issues persist, they could limit the sustainability of projected earnings improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based growth and market share
Growth across Surgical and Vision Care reduces reliance on one product or market. Record contact-lens share, strong UNITY adoption and broad geographic performance support durable customer relationships and recurring demand from procedures and replacement cycles.
Read all positive factors
Alcon (ALC) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF29.62B
Dividend Yield0.48%
Average Volume (3M)1.46M
Price to Earnings (P/E)56.6
Beta (1Y)1.03
Revenue Growth-0.87%
EPS Growth-44.90%
CountryCH
Employees25,000
SectorHealthcare
Sector Strength45
IndustryMedical - Specialties
Share Statistics
EPS (TTM)1.29
Shares Outstanding499,700,000
10 Day Avg. Volume1,240,075
30 Day Avg. Volume1,456,701
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
CHF71.84Price Target Upside28.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.83
Revenue Forecast (FY)CHF8.97B
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:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial quarter: 7% consolidated sales growth, strong equipment performance (UNITY), margin expansion (+250 bps gross margin, +160 bps operating margin), EPS and cash-flow strength, and multiple successful new-product introductions (PanOptix Pro, TRYPTYR, Valeda). Notable negatives included the discontinuation of the PowerVision accommodating IOL program, slower growth in implantables and certain glaucoma products, a few one-time margin items and manufacturability timing for UNITY DX. On balance, the positives — consistent revenue and margin expansion, robust cash generation and multiple high-potential product rollouts and market-share gains — outweigh the setbacks.Positive Updates
Top-line Revenue Growth
Total sales of $2.8 billion, up 7% year-over-year (constant currency), broad-based growth across franchises and geographies.
Negative Updates
Discontinuation of PowerVision Accommodating IOL Program
Decision to discontinue PowerVision IOL programs after clinical data showed persistent, unpredictable postoperative distance-vision shifts in a subset of patients; represents an R&D setback and loss of a potential long-term accommodating IOL pathway.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Revenue Growth
Total sales of $2.8 billion, up 7% year-over-year (constant currency), broad-based growth across franchises and geographies.
Read all positive updates
Company Guidance
Alcon reiterated its 2026 assumptions and guidance: it expects aggregate eye‑care markets to grow 3%–4%, with FX rates as of end‑July and current tariffs (U.S. import rates ~10%–12.5%) holding through year‑end; constant‑currency sales growth is guided to 5%–7%, with tougher equipment comps in H2 partially offset by easier contact‑lens comps (particularly Q4) and launch contributions from TRYPTYR, Valeda, UNITY CS and PanOptix Pro (Europe). Management forecast core operating margin expansion of 90–190 basis points (constant currency), raised core diluted EPS growth to 12%–15% (constant currency), expects SG&A in H2 to be consistent with last year as a percent of sales while reinvesting roughly two‑thirds of an anticipated ~$60M Q3 tariff refund (≈$40M) back into the business, and noted a Q2 core gross margin of 64.7% (up 250 bps YoY), Q2 core tax rate of 20.7%, interest expense of $53M, and healthy H1 free cash flow of $693M with $538M returned to shareholders.Alcon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.77B | 10.90B | 9.91B | 9.46B | 8.72B | 8.29B |
| Gross Profit | 6.12B | 6.02B | 5.51B | 5.25B | 4.75B | 4.65B |
| EBITDA | 2.33B | 2.78B | 2.68B | 2.24B | 1.72B | 1.76B |
| Net Income | 640.64M | 1.03B | 1.02B | 974.00M | 335.00M | 376.00M |
Balance Sheet | ||||||
| Total Assets | 31.18B | 31.53B | 30.35B | 29.61B | 29.21B | 28.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.61B | 1.83B | 1.10B | 980.00M | 1.58B |
| Total Debt | 5.31B | 5.67B | 5.14B | 5.13B | 5.07B | 4.48B |
| Total Liabilities | 9.53B | 9.51B | 8.79B | 8.99B | 9.53B | 8.74B |
| Stockholders Equity | 21.65B | 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 | -1.04B | -1.44B | -1.17B | -1.09B | -1.86B | -1.20B |
| Financing Cash Flow | -1.25B | -1.14B | -322.00M | -211.00M | -8.00M | -123.00M |
Alcon Technical Analysis
Positive
55.74
Price Trends
55.95
Positive
55.92
Positive
59.03
Negative
Market Momentum
1.09
Positive
54.54
Neutral
38.90
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 55.74 is below the 20-day moving average (MA) of 58.03, below the 50-day MA of 55.95, and below the 200-day MA of 59.03, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 38.90 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | CHF296.26B | 24.45 | 37.12% | 2.76% | -1.06% | 30.86% | |
71 Outperform | CHF29.62B | 56.64 | 2.91% | 0.50% | -0.87% | -44.90% | |
70 Outperform | CHF15.31B | 39.84 | ― | 1.04% | 2.24% | -5.84% | |
67 Neutral | CHF3.52B | 20.84 | 15.68% | 0.57% | 3.64% | 10.93% | |
63 Neutral | CHF2.53B | -20.86 | -9.09% | 1.65% | -3.98% | -284.91% | |
53 Neutral | CHF366.00M | 3,484.00 | ― | 1.22% | -6.64% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:ALC
Alcon
58.80
-6.36
-9.76%
CH:ROP
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375.60
123.42
48.94%
CH:STMN
Straumann Holding AG
92.82
-1.04
-1.10%
CH:SFZN
Siegfried Holding AG
80.25
-5.21
-6.10%
CH:TECN
Tecan Group AG
191.10
20.54
12.04%
CH:MEDX
medmix AG
8.71
-2.15
-19.79%
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.