Alcon (ALC) Q1 2026 earnings summary

Executive summary

• Net sales reached $2.7 billion in Q1 2026, up 10% year-over-year (6% in constant currency), driven by new product launches and strong performance in 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.

• Core operating margin improved to 21.2%, while reported operating margin declined to 10.9% due to efficiency initiative and impairment charges.

• 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 and a new $1.5 billion share repurchase program announced.

Financial highlights

• Q1 sales reached $2.7 billion, up 10% year-over-year (6% in constant currency).

• Core operating margin was 21.2% (up 40 bps YoY); reported operating margin was 10.9% (down 820 bps YoY).

• Core diluted EPS was $0.85 (up 16% YoY); reported diluted EPS was $0.39 (down 44% YoY).

• Free cash flow was $279 million; net cash from operating activities was $418 million.

• Gross margin was 56.8%; core gross margin was 63%.

Outlook and guidance

• Full-year 2026 constant currency sales growth expected at 5–7%.

• Core operating margin expansion of 70–170 bps anticipated, with most improvement in H2.

• Core diluted EPS growth projected at 10–13%.

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

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