Alcon Holds Sales Growth Near 6% and Narrows 2026 EPS Outlook

Key Facts

Alcon narrowed its 2026 sales growth outlook to about 6% and lowered the upper end of its core EPS growth forecast to 14%, according to an update issued with its third-quarter results. That compares with a previous sales growth range of 5% to 7% and a prior EPS growth forecast of 12% to 15%. In the third quarter, sales were $2.717 billion, compared with $2.589 billion in the same period of 2025, an increase of 5%. Core diluted EPS rose to $0.91 from $0.79, up 15%. The results show quarterly performance stronger than the average annual sales growth forecast, alongside a narrower expected earnings range.

The outlook adjustment came as the company posted growth in the first nine months of the year, with sales of $8.184 billion compared with $7.617 billion in the same period of 2025. That represents an increase of 7% on a reported basis and 6% at constant currency, while core EPS rose 14% on a reported basis to $2.60. Alcon said it remained on track to achieve its 2026 targets, citing year-to-date sales growth of 6% and core EPS growth of more than 10%, despite competitive pressures in some areas. Operating income for the first nine months was $684 million, compared with $1 billion a year earlier. The company attributed the decline in part to $402 million in net non-cash, pre-tax charges related to its decision to discontinue the PowerVision intraocular lens programs.

Performance varied across business units in the third quarter: Vision Care sales rose 6% to $1.237 billion from $1.169 billion. By contrast, implantables sales fell 2% to $422 million, compared with $432 million a year earlier. Equipment and other products sales rose 11% to $269 million from $243 million. Alcon said growth in surgical consumables benefited from procedure volumes, price increases and consumables for the Valeda device. It added that equipment launches, including the Unity platform and Valeda, supported growth in the business. The company also cited competitive pressure in the United States on intraocular lenses, explaining part of the divergence among product lines.

Alcon based its outlook on an assumption that its combined markets would grow about 3% in 2026. It also estimated the net impact of tariffs on cost of sales at about $40 million for the year, after mitigation measures and refunds. Its assumption includes U.S. import tariffs remaining in a range of 10% to 12.5% through year-end. Third-quarter results included $58 million in tariff refunds. The company said its annual impact estimate takes those refunds and mitigation measures into account. The 3% market growth assumption puts Alcon's own outlook in the context of a market growing more slowly than its targeted sales growth rate.

On its third-quarter earnings call, Alcon's management kept the potential peak sales range for ENCELTO at $250 million to $400 million, without specifying when that level could be reached. Management tied the realization of that potential to how quickly patients can be identified, brought into treatment and through insurance reimbursement procedures. It said, "We feel comfortable with the $250 million to $400 million range." It added that patients are "rare," and that the speed of identifying them, starting treatment and navigating the reimbursement system are influential factors. The range reflects a long-term sales opportunity, but depends on the path to identifying patients and providing access to treatment, rather than near-term confirmed revenue.

Alcon shares fell about 6% in Wednesday, November 11 trading, according to Reuters via MarketScreener, as investors focused on weak prospects for the eye-care market and slower implantables sales. The decline came despite increases in earnings for the third quarter and first nine months, and after the company narrowed its EPS growth outlook. The company had issued a wider range for its 2026 sales and earnings growth outlook in August. The potential ENCELTO sales estimate was given on the earnings call, while the annual outlook update appeared in the results statement. The next indicators center on whether the Vision Care and equipment businesses can sustain growth, and on the trajectory of implantables sales and the competitive pressures cited by the company.