Alcon shares fall nearly 6% after narrowing 2026 sales and earnings growth outlook
Key Facts
Alcon shares fell nearly 6% on Wednesday, November 11, after the company narrowed its 2026 outlook, signaling slower expected growth in eye-care markets and competitive pressure on some products. Reuters said weaker market expectations and sales of implant products weighed on the stock. The company reported third-quarter net sales of $2.717 billion, up 5% from the same period in 2025. But Reuters said sales fell slightly short of market expectations. Core diluted earnings per share, meanwhile, were $0.91, compared with $0.79 a year earlier.
Alcon cut its 2026 sales growth forecast to about 6% in constant currency, from a previous range of 5% to 7%. It also narrowed its core earnings-per-share growth range to 12%–14%, from 12%–15% in its August outlook. The revision also included the core operating margin forecast: the company now targets expansion of 100 to 150 basis points, compared with a previous range of 90 to 190 basis points. The company assumes the markets in which it operates will grow by about 3% this year, down from a previous estimate of 3% to 4%. The narrower outlook came as the company posted growth in sales and core earnings during the quarter.
Implant products emerged as a weak point in the quarter's results, with sales down 2% to $422 million. The company attributed weaker IOL sales to competition in the United States, partly offset by strong performance from PanOptix Pro lenses and growth in international markets. The category highlights the challenge the company faced in the eye-surgery market, despite growth in other segments. Reuters said implant product sales were among the factors weighing on the stock alongside the weaker outlook. Across its markets, the company cut its estimate for expected growth in 2026 to about 3%.
By contrast, surgical consumables sales rose 6% to $789 million, with the company attributing the growth to higher procedure volumes, pricing and sales of Valeda consumables. Equipment and other product sales increased 11% to $269 million, driven by equipment launches that included the Unity and Valeda platforms. In the Vision Care segment, sales were $1.237 billion, up 6% from the year-earlier quarter. Eye-care sales grew 8%, while contact lens sales rose 4%. The results show growth across the company's businesses, with continued declines in implant products offset by expansion in consumables, equipment and vision care.
Core operating margin was 21.8% in the third quarter, compared with 20.2% a year earlier. However, Reuters cited a JPMorgan analyst estimate that operating earnings would have been about 9% below expectations without a $58 million tariff fee recovery. That recovery provides context for the margin improvement, having contributed to the operating result during the period. In the first nine months of 2026, sales reached $8.184 billion, compared with $7.617 billion in the same period of 2025. Core diluted earnings per share for the period also rose to $2.60 from $2.29.
Chief Executive David Endicott said the company "remains on track to achieve its 2026 targets," pointing to 6% year-to-date sales growth and double-digit growth in core earnings per share, despite competitive pressures in some areas. Core diluted earnings per share were $0.91 for the quarter, above the analyst consensus of $0.88, according to Investing.com. The company scheduled its results discussion call for November 11, 2026, at 8:00 a.m. Eastern time, and said a recording would be available within 24 hours after the event. The stock's closing price on November 10 was $74.06, according to EL7 data. That price was for the session before the shares fell on Wednesday.