Alcon Reports Quarterly Sales of $2.717 Billion and Lowers Upper Bound of EPS Growth Outlook to 14%
Key Facts
On November 10, Alcon reported third-quarter results for the three months ended September 30, with net sales of $2.717 billion, up 5% from the same period a year earlier, according to the company. It kept its 2026 sales growth outlook at about 6% in constant currency, but narrowed its core EPS growth range to 12%-14%. The previous range, included in the August update, was 12%-15%, lowering the upper end of the annual outlook. The company also narrowed its expected change in core operating margin to 100-150 basis points, compared with a range of 90-190 basis points in August. ALC shares closed at $74.06 on November 10, according to EL7 data.
Margins improved year over year during the quarter, with reported operating margin at 14.0% versus 12.8% in the third quarter of 2025. Core operating margin rose to 21.8% from 20.2% in the comparable period. These figures put sales growth alongside margin expansion, while the narrower EPS range sets a lower ceiling for the annual outlook than the August update. Chief Executive David J. Endicott said the company “remains on track to achieve its 2026 targets,” citing year-to-date sales growth of 6% and double-digit growth in core EPS. He added that this came “despite competitive pressures in specific areas,” with continued momentum in newer products and a strong pipeline.
Business-unit results were mixed: sales of implantables fell 2% to $422 million, from $432 million a year earlier. By contrast, surgical consumables sales rose 6% to $789 million, compared with $745 million. Sales of surgical equipment and other products also increased 11% to $269 million, from $243 million in the comparable quarter. The divergence shows that overall sales growth came alongside weakness in implantables, offset by gains in consumables and equipment. Endicott linked performance to competitive pressures in some areas, without the statement identifying those pressures as confined to any particular unit.
The November outlook follows the August update, when Alcon kept its constant-currency sales growth range at 5%-7% and raised its core EPS growth range to 12%-15%. The core EPS growth range in the May update was 10%-13%, according to the second-quarter results statement. In that quarter, sales were $2.8 billion, up 8% year over year. The sequence of updates places the new November range after the August outlook increase, with the upper end of core EPS growth lowered from 15% to 14%. The current sales outlook remains at about 6% in constant currency, within the range the company announced in August.
The company estimated the net annual impact of tariffs, after mitigation measures and refunds, at about $40 million for fiscal 2026. It said it recovered about $60 million from the U.S. government in the third quarter and is reinvesting about two-thirds of the recovery benefit in its business. This provides additional financial context for the annual outlook, distinguishing the estimated net annual tariff impact from the amount recovered in the quarter. The company kept its annual sales growth outlook at about 6% in constant currency, alongside its revised core EPS range. Alcon is scheduled to hold its third-quarter earnings call on November 11 at 8:00 a.m. Eastern Time, or 2:00 p.m. Central European Time.