Alcon Inc.

Second-quarter sales were $2.8 billion, up 7% versus 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%; 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, or 20.6% of sales, up 160 basis points year over year on a constant-currency basis. Core diluted EPS was $0.84, up 9%. Free cash flow was $693 million in the first half, and $538 million was returned to shareholders through dividends and share repurchases. For 2026, Alcon still expects constant-currency sales growth of 5% to 7%. It raised expected core operating margin expansion to 90 to 190 basis points and increased core diluted EPS growth outlook to 12% to 15% in constant currency. Management also said it expects a roughly $60 million U.S. government refund in Q3, with about 2/3 reinvested back into the business.

David Endicott framed the quarter as proof that Alcon’s innovation investments are translating into commercial success, citing broad-based 7% sales growth across both franchises and geographies. He was upbeat on UNITY, PanOptix Pro, TRYPTYR, Valeda and the contact lens portfolio, saying the company has a strong pipeline of launch catalysts and a disciplined cadence of future products. He also said the company remains focused on long-term growth despite an evolving environment.

Tim Stonesifer emphasized the reported financial outperformance: sales up 7%, core gross margin at 64.7% and core EPS at $0.84, with strong operating leverage despite targeted launch investments. He said the gross margin improvement reflected price increases, manufacturing efficiencies and $15 million of other revenue from a licensee, and that free cash flow reached $693 million in the first half. On capital allocation, he noted $538 million returned to shareholders in the first half and said Alcon will reinvest about 2/3 of the expected $60 million tariff refund back into the business, while keeping second-half SG&A around last year as a percentage of sales.

Analysts pressed on UNITY adoption, and management said the strong response reflects both replacement of older equipment and efficiency gains, including faster retina workflows and improved cataract throughput; management said the funnel remains on track and second-half placements are visible. On IOLs, management said PanOptix Pro has converted nearly all PanOptix accounts in the U.S. and that Vivity Pro and TruPlus are being rolled out deliberately, with Vivity Pro submitted in the U.S. and Europe and PanOptix Pro already approved in both regions. Questions on PowerVision led to a clear answer that Alcon still believes accommodating/tunable optics are the endgame, but the specific PowerVision program did not meet performance standards. Analysts also asked about tariffs and spending; management said the refund will partly be reinvested and that the company’s cost efficiency program remains on track with $50 million in 2026 savings and $150 million in charges overall.