EssilorLuxottica S.A.

Reported H1 2026 revenue grew 9.7% at constant currency and 5.7% at current exchange rates; Q2 revenue grew 8.7% constant currency and 7.2% current exchange rates. Adjusted operating profit increased 15% in H1, gross profit improved by 10 basis points, operating expenses as a percentage of revenue improved 80 basis points, operating profit improved 80 basis points at constant currency and 50 basis points at current exchange, and net profit improved 50 basis points at constant currency and 20 basis points at current exchange. Free cash flow for H1 was €1.067 billion, more than €100 million above last year and the strongest first half in five years. For the second half, management said it expects continued profitable growth, with a demanding comparison base but support from innovation pipeline, productivity improvements, a good July, improved Stellest productivity in North America, and potential further tariff effects; no formal numerical full-year or next-quarter guidance was given.

Francesco Milleri said the company is moving toward a broader healthcare model centered on oculomics, where the eye is used as a window into systemic health. He highlighted the Philadelphia LensCrafters surgery center, the Applied Materials partnership, Nuance Audio’s next generation, and continued scaling of Meta-linked AI glasses as signs that EssilorLuxottica is becoming a med-tech and wearables leader, not just an eyewear company. His tone was confident and expansive, emphasizing that the group is executing at a speed that is “completely new” in its history.

Stefano Grassi stressed that the quarter and first half were aligned with medium-term guidance, with solid constant-currency growth and broad-based regional strength, led by Asia Pacific at 17% in Q2 and North America/EMEA/Latin America all delivering high-single-digit growth. He said gross margin benefited from strong price mix and a net positive tariff effect, and that operating expenses were well controlled despite ongoing med-tech and innovation investment. On cash flow, he cited €1.067 billion in H1 free cash flow and said cost inflation is not a concern at this stage, while also pointing to continued margin progression in H2 from scale, efficiencies, and better mix.

Analysts focused heavily on smart glasses economics, the Meta partnership, tariffs, and whether the second half could absorb a tougher comparison base. Management said wearables are improving across pricing, prescription lens penetration, Transitions, polarized lenses, and manufacturing productivity, and that the Meta relationship remains strong and exclusive on lenses; they also said the partnership is broadening the market rather than simply lowering prices. On tariffs, management said H1 included both tariff payments and refunds, with a net positive 60 basis point impact in the P&L, and indicated there could be some additional benefit in H2; on top-line, they pointed to a strong July, improving Stellest momentum in the U.S., and new product launches in lenses, wearables, and Nuance Audio.