EssilorLuxottica (EL) Q2 2026 earnings summary

Executive summary

• Revenue grew 9.7% year-over-year at constant exchange rates in H1 2026, reaching €14,818 million, with Q2 up 8.7%, driven by strong growth in both Professional Solutions and Direct to Consumer segments, and exponential gains in myopia management and AI glasses.

• Adjusted operating profit rose 15% at constant FX, with margin expanding to 18.9%, supported by investments in R&D, AI, and medical capabilities, and expansion of industrial and commercial footprint.

• Net profit for H1 2026 was €1,921 million, up 13.3% year-over-year at constant FX; basic EPS reached €3.40.

• Cash generation exceeded €1.07 billion, the strongest in five years, with over €100 million improvement year-over-year.

• Strategic partnerships and acquisitions, including Applied Materials, Meta, and Top Charoen, reinforced innovation leadership and global expansion.

Financial highlights

• H1 2026 revenue: €14,818 million (+9.7% constant FX, +5.7% current FX); Q2 revenue: €7,692 million (+8.7% constant FX).

• Adjusted operating margin expanded to 18.9% at constant FX, and adjusted net profit margin reached 13.3%.

• Gross margin improved to 63.5%, up 10 basis points year-over-year.

• Free cash flow totaled €1.07 billion in H1, highest in five years.

• Net debt increased to €13.39 billion at June 30, 2026, with net debt/EBITDA LTM at 2.0x.

Outlook and guidance

• Management expects solid revenue and adjusted operating profit growth over the next five years at constant FX, aligned with med-tech transformation and scaling of the AI-driven healthcare platform.

• H2 expected to benefit from currency tailwinds and strong product pipeline, including new launches in wearables, lenses, and hearing aid glasses.

• Acknowledges tougher comparison base in H2 but expects momentum from innovation and improved productivity.