Alcon Cuts 2026 EPS Growth Forecast to 12%-14% as Sales Grow 5%
Key Facts
Alcon reported on November 10 results for the third quarter ended September 30, 2026, with sales of $2.717 billion, up 5% from $2.589 billion in the same period of 2025. In an update accompanying the results, the company cut its forecast range for full-year adjusted diluted EPS growth to 12%-14%, from the 12%-15% range announced in August. It kept its constant-currency sales growth forecast at about 6%, versus the previous range of 5%-7%. It also narrowed its forecast range for the change in core operating margin to 100-150 basis points, compared with the previous range of 90-190 basis points. The earnings outlook revision comes as sales continue to grow, while implant performance faces competitive pressure.
Diluted EPS was $0.54 for the quarter, while core diluted EPS was $0.91, up 15% from the third quarter of the previous year. Core operating income rose to $591 million from $523 million, and its margin increased to 21.8% from 20.2%. Reported operating income was $381 million, versus $332 million a year earlier, while operating margin rose to 14.0% from 12.8%. The company said quarterly results included a $58 million tariff recovery. For the nine months ended September 30, sales were $8.184 billion, versus $7.617 billion, up 7% on a reported basis and 6% in constant currencies.
Performance varied across the company’s segments in the quarter; implant sales were $422 million, down 2% from a year earlier. Alcon said IOL sales fell 1% in constant currencies, citing competitive pressure in the United States. By contrast, vision care sales grew 6% to $1.237 billion. Contact lens sales rose 4% to $737 million, while ocular health product sales increased 8% to $500 million. Vision care’s continued growth contrasts with weakness in implants, a point highlighted in the quarterly results and updated outlook.
In the surgical business, consumables sales rose 6% to $789 million, with the company saying growth benefited from higher procedure volumes, pricing and Valeda consumables. Equipment and other sales also increased 11% to $269 million, alongside the launch of Unity and Valeda products. Alcon assumes the markets it serves will grow about 3% in 2026, compared with its previous estimate of 3% to 4%. That assumption underpins its forecast for sales growth of about 6% in constant currencies, despite differing performance across its segments. Chief Executive David Endicott said Alcon “remains on track to achieve its 2026 targets,” citing year-to-date sales growth and double-digit growth in core EPS despite specific competitive pressures.
The quarter’s results included a tariff recovery, but the company expects the net tariff impact for 2026 to be about $40 million after mitigation measures and recoveries. The estimate reflects a U.S. government recovery of about $60 million, of which Alcon said it would reinvest about two-thirds in its business. On cost control, the company raised its estimate for annual savings from its efficiency program to about $130 million, from about $100 million previously, with total costs estimated at about $230 million. Alcon expects the program to be fully implemented in 2026. The company is scheduled to hold a conference to discuss its third-quarter results on November 11, 2026.
Alcon shares, listed under the ticker ALC, closed at $74.06 on November 10, according to EL7 data. Available data do not establish a reliable figure for a decline in the stock during that session; the description of a decline of about 6% relates to the following session on November 11 and does not represent the move on the results announcement day, November 10. Accordingly, no intraday trading range or specific reason for the price move is attributed to the November 10 session. The day’s results remain reflected in annual sales growth, declining implant sales and a revision to the company’s full-year core EPS growth forecast.