Alcon (ALC) AI Stock Analysis

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Alcon

(NYSE:ALC)

Rating:66Neutral

Price Target:

CHF71.00

▲(13.31% Upside)

Alcon's overall stock score reflects strong financial performance and cash flow management, which are offset by bearish technical indicators and valuation concerns. The mixed earnings call sentiment, with challenges in the surgical market and tariff impacts, further tempers the score.

Alcon (ALC) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

$31.22B

Dividend Yield0.45%

Average Volume (3M)1.30M

Price to Earnings (P/E)33.0

Beta (1Y)0.94

Revenue Growth1.60%

EPS Growth-4.40%

CountryCH

Employees25,599

SectorHealthcare

Sector Strength47

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)0.61

Shares Outstanding499,700,000

10 Day Avg. Volume1,002,951

30 Day Avg. Volume1,302,535

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.22

Enterprise Value/Revenue7.65

Enterprise Value/Gross Profit13.79

Enterprise Value/Ebitda34.45

Forecast

1Y Price Target

$78.59

Price Target Upside25.42% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering17

Alcon Business Overview & Revenue Model

Company DescriptionAlcon Inc. is a global leader in eye care dedicated to helping people see brilliantly. The company operates in two main sectors: Surgical and Vision Care. Alcon's Surgical segment includes products for cataract surgery and vitreoretinal surgery, while its Vision Care segment provides a wide range of contact lenses and lens care products. With a strong focus on innovation and advanced technology, Alcon offers a comprehensive portfolio designed to enhance the quality of life for patients worldwide.

How the Company Makes MoneyAlcon 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook, with strong performance in Vision Care and strategic acquisitions positioning the company for future growth. However, the surgical franchise underperformed, market growth was below expectations, and tariff impacts posed challenges.

Q2-2025 Updates

Positive Updates

New Product Launches and Strategic Acquisitions

Several major product launches are underway, including Unity VCS, PanOptix Pro, and Tryptyr. Strategic acquisitions, such as STAAR Surgical and LumiThera, are expected to strengthen the product portfolio and drive growth.

Solid Contact Lens Performance

Contact lens sales were up 7% to $692 million, driven by product innovation and price increases.

Strong Free Cash Flow Generation

The company generated $681 million of free cash flow in the first half of the year, enabling $287 million to be returned to shareholders.

Vision Care Stability

Vision Care sales were up 5% to $1.1 billion, with contact lenses showing particularly strong performance.

Negative Updates

Surgical Franchise Underperformance

Surgical revenue was up only 1% year-over-year to $1.5 billion, with implantable sales down 2% due to soft market conditions and competitive pressures.

Lower-than-Expected Market Growth

The global eye care market is expected to grow at low single digits, below historical averages, impacting sales guidance.

Impact of Tariffs

Tariffs incurred $27 million in charges during the second quarter, with an expected full-year impact of $100 million to cost of sales.

Reduced Revenue Guidance

Full-year revenue guidance was updated to $10.3 billion to $10.4 billion due to a soft surgical market and currency movements.

Company Guidance

During the Alcon Second Quarter 2025 Earnings Conference Call, the company provided guidance with an updated full-year revenue projection of $10.3 billion to $10.4 billion, representing a sales growth rate of 4% to 5% in constant currency. The second quarter sales were reported at $2.6 billion, marking a 3% increase year-over-year. The core operating margin for the full year is expected to be between 19.5% and 20.5%. Alcon reaffirmed its commitment to long-term goals, targeting a core diluted earnings per share range of $3.05 to $3.15, equating to a year-over-year change of between 0% and 2% in constant currency. The guidance reflects a cautious outlook due to a soft surgical market and currency fluctuations.

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 shows solid growth, the balance sheet is stable with low debt, and cash flow is strong, indicating excellent liquidity and financial flexibility.

Income Statement

Very Positive

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

Very Positive

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

Very Positive

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	4.97B	9.91B	9.46B	8.72B	8.29B	6.83B
Gross Profit	2.76B	5.51B	5.25B	4.75B	4.65B	2.94B
EBITDA	1.10B	2.68B	2.24B	1.72B	1.76B	1.11B
Net Income	573.00M	1.02B	974.00M	335.00M	376.00M	-531.00M
Balance Sheet
Total Assets	31.01B	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	1.56B
Total Debt	5.19B	5.14B	5.13B	5.07B	4.48B	4.50B
Total Liabilities	8.99B	8.79B	8.99B	9.53B	8.74B	8.78B
Stockholders Equity	22.00B	21.55B	20.62B	19.68B	19.26B	18.82B
Cash Flow
Free Cash Flow	794.00M	1.41B	537.00M	472.00M	165.00M	256.00M
Operating Cash Flow	914.00M	2.08B	1.39B	1.22B	1.34B	823.00M
Investing Cash Flow	-711.00M	-1.17B	-1.09B	-1.86B	-1.20B	-572.00M
Financing Cash Flow	-267.00M	-322.00M	-211.00M	-8.00M	-123.00M	466.00M

Alcon Technical Analysis

Technical Analysis Sentiment

Negative

Last Price62.66

Price Trends

50DMA

68.10

Negative

100DMA

70.82

Negative

200DMA

74.71

Negative

Market Momentum

MACD

-1.70

Negative

RSI

35.70

Neutral

STOCH

30.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ALC, the sentiment is Negative. The current price of 62.66 is below the 20-day moving average (MA) of 64.74, below the 50-day MA of 68.10, and below the 200-day MA of 74.71, indicating a bearish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:ALC.

Alcon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALC	66 Neutral	$31.22B	33.00	4.98%	0.45%	1.60%	-4.40%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
RHHVF	―	$270.11B	24.70	31.98%	3.32%	―	―
NOVN	81 Outperform	CHF193.71B	17.02		3.54%	9.36%	-14.82%
SOON	73 Outperform	CHF13.84B	26.52		1.85%	6.58%	-10.02%
STMN	71 Outperform	CHF14.79B	37.65		1.03%	4.49%	45.08%
GALD	71 Outperform	CHF34.68B	105.67		0.10%	6.22%	―

* Healthcare Sector Average

Performance Comparison

CH:ALC

Alcon

62.66

-20.39

-24.55%

RHHVF

Roche Holding AG

330.51

27.77

9.17%

CH:NOVN

Novartis AG

98.85

3.84

4.04%

CH:STMN

Straumann Holding AG

92.00

-29.82

-24.48%

CH:SOON

Sonova Holding AG

237.90

-60.41

-20.25%

CH:GALD

Galderma Group AG

145.80

66.29

83.37%

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.Date of analysis: Aug 21, 2025