Alcon Inc.

Second-quarter sales were $2.8 billion, up 7% versus the prior year. Surgical sales were $1.6 billion, up 7%; implantables were $466 million, up 1%; consumables were $825 million, up 5%; equipment was $279 million, up 25%; Vision Care sales were $1.2 billion, up 7%; contact lens sales were $726 million, up 5%; and ocular health sales were $486 million, up 12%. Core gross margin was 64.7%, up 250 basis points year over year, core operating income was $574 million at 20.6% of sales, and core diluted EPS was $0.84, up 9%. Free cash flow was $693 million in the first half, and Alcon returned $538 million to shareholders through dividends and buybacks. For 2026, Alcon kept constant-currency sales growth guidance at 5% to 7%, raised expected core operating margin expansion to 90 to 190 basis points, and raised core diluted EPS growth guidance to 12% to 15%. Management also said it assumes aggregate eye care markets grow 3% to 4%, and that it expects a roughly $60 million U.S. government tariff refund in Q3, with about two-thirds reinvested back into the business.

David Endicott framed the quarter as evidence that Alcon’s innovation spending is translating into commercial success, pointing to broad-based 7% sales growth and strong demand for UNITY, PanOptix Pro, Valeda, and TRYPTYR. He emphasized that the company has multiple launch catalysts ahead, including Vivity Pro, TruPlus, UNITY M, and an eye whitener, and described the pipeline cadence as robust. His tone was confident but measured, especially around discontinued PowerVision IOL work, which he said did not meet visual-performance standards but still produced useful learnings.

Tim Stonesifer highlighted the company’s stronger profitability: core gross margin of 64.7% was up 250 basis points year over year, core operating income reached $574 million, and core diluted EPS was $0.84. He said first-half free cash flow was $693 million and that Alcon returned $538 million to shareholders, while also noting a $60 million expected U.S. tariff refund in Q3, with about $40 million to be reinvested in the business. He also said the company expects second-half SG&A to be consistent with last year as a percentage of sales, and that the new cost efficiency program remains on track for $50 million of savings this year and a $100 million run-rate, with $150 million of charges.

Analysts focused on UNITY adoption, the tariff refund and reinvestment, contact lens pricing, the PowerVision write-down and RxSight collaboration, surgical glaucoma, and the pace of IOL growth. Management said UNITY’s adoption is being driven by meaningful procedure-time savings, better ergonomics and customer demand, and that the order book is now a more uniform global opportunity rather than a one-time backlog. On IOLs and the RxSight deal, management said it still views accommodating and tunable lenses as the end goal, while PanOptix Pro is already approved in the U.S. and Europe, Vivity Pro is expected late this year or early next, and TruPlus has CE Mark with a cautious rollout planned.