Alcon (ALC) investor relations material

Executive summary

• Net sales reached $2.7 billion in Q1 2026, up 10% year-over-year (6% in constant currency), driven by innovation, new product launches, and portfolio resilience in both Surgical and Vision Care segments.

• Core diluted EPS rose to $0.85, up 16% year-over-year, while reported diluted EPS was $0.39, down 44% due to prior-year non-recurring gains and current-year efficiency and impairment costs.

• Free cash flow was $279 million, flat year-over-year; net cash from operating activities was $418 million.

• Dividend of CHF 0.28 per share approved, payable in May; new $1.5 billion share repurchase program announced to be executed over three years.

• Innovation pipeline remains robust, with launches such as UNITY VCS, PanOptix Pro, TruPlus, and TRYPTYR contributing to growth.

Financial highlights

• Core operating margin was 21.2% (up 40 bps year-over-year); reported operating margin declined to 10.9% from 19.1% due to efficiency and impairment costs.

• Gross margin was 56.8%; core gross margin 63%, down 40 bps year-over-year due to tariffs.

• IFRS diluted EPS was $0.39 (down from $0.71); core diluted EPS was $0.85 (up 10–16%).

• Capital expenditures totaled $139 million; total debt was $4.7 billion with no financial covenants.

• EBITDA for the quarter was $612 million, down from $764 million a year ago.

Outlook and guidance

• 2026 net sales growth guidance maintained at +5% to +7% (constant currency); core diluted EPS growth guidance raised to +10% to +13%.

• Core operating margin expected to improve by 70–170 basis points, mainly in the second half.

• Assumptions include 3–4% market growth, $100–$150 million full-year tariff impact, and a core tax rate of ~20%.

• Tariff rate assumption lowered to 10%, reducing expense by $25 million, to be reinvested in the business.

• Efficiency measures announced in February 2026 are expected to cost $150 million and be completed within the year.