| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 36 | 50.8x | 17.8x | Bottom tier | |
Growth | 52 | 7.8% | 7.1% | Around median | |
Quality | 67 | 3.5% | 4.5% | Top tier | |
Safety | 71 | 2.5x | 2.6x | Top tier | |
Capital Return | 50 | 0.52% | 2.12% | Around median | |
Momentum | 27 | -7.9% | 2.9% | Bottom tier | |
Sentiment | 67 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alcon Inc. operates in the eye care markets through two main franchises: Surgical and Vision Care. The Surgical franchise includes implantables, consumables, and equipment platforms such as UNITY, while Vision Care includes contact lenses and ocular health products such as TRYPTYR and Systane; accordingly, revenue depends on sales of devices, procedural materials, lenses, prescription treatments, and consumer products.
In Q2 FY2026, sales reached $2.8 billion, growing 7% year over year in constant currency. The Surgical franchise generated $1.6 billion, or about 57% of sales, with growth of 7%, divided among $825 million from consumables, $466 million from implantables, and $279 million from equipment; Vision Care recorded $1.2 billion, or about 43%, with growth of 7%, including $726 million from contact lenses and $486 million from ocular health.
The core gross profit margin reached 64.7% in Q2 FY2026, up 250 basis points, while core operating income reached $574 million and its margin reached 20.6%, improving by 160 basis points in constant currency. Core diluted earnings per share were $0.84, up 9%, and the company generated $693 million in free cash flow during the first half of FY2026, of which it returned $538 million to shareholders through dividends and share repurchases.
The analyst consensus on ALC stock is Buy, with an average price target of $73.43, a high of $85, and a low of $35. The average target lies in the upper half of the 52-week range of $61.835–$87.64, but is about 16% below the top of that range, while the wide spread between the $35 and $85 targets reflects fundamental disagreement over the sustainability of new product growth and pressures from implantables and tariffs.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Sales rose 7% to $2.8 billion, with matching growth of 7% in both Surgical and Vision Care. Equipment was the fastest growth driver, increasing 25% to $279 million thanks to UNITY, while ocular health rose 12% to $486 million, supported by TRYPTYR and Systane. Surgical consumables and contact lenses also grew 5% each, making growth broad-based across the portfolio.
UNITY drove equipment sales to $279 million in Q2 FY2026, up 25% year over year. Management said selling prices exceeded its expectations and that the platform could save between 20% and 30% of the time required for some retinal procedures, potentially allowing approximately one additional procedure when performing four or five vitrectomies per day. However, the company will face tougher equipment comparisons in the second half of FY2026 after the rollout of UNITY VCS began in the corresponding period of the prior year.
The PanOptix family achieved double-digit growth in Q2 FY2026, and PanOptix Pro accounted for about 90% of PanOptix implants in the United States. The product began expanding in Europe during June 2026, while TruPlus received the CE mark and began a limited launch with key opinion leaders in the United States. Nevertheless, the implantables business grew only 1% to $466 million, reflecting continued competition and weakness in surgical glaucoma sales.
Automated analysis for informational purposes only — not investment advice.
The company expects constant-currency sales growth of between 5% and 7%, assuming growth of between 3% and 4% in the combined eye care markets. It raised its forecast for core diluted earnings per share growth to 12%–15% and also raised the range for core operating margin improvement to 90–190 basis points. The assumptions include a tariff refund of about $60 million in Q3 FY2026, with about $40 million of it being reinvested in the business.
Implantables grew only 1% in Q2 FY2026 amid competitive launches, and U.S. cataract procedure volumes remained flat. The company also discontinued the PowerVision program after unexpected and persistent shifts in distance vision emerged among some patients in the clinical study. In addition, Alcon expects a net tariff impact of between $40 million and $90 million during FY2026, while about four points of the 5% contact lens growth came from pricing.
The core gross profit margin reached 64.7% in Q2 FY2026, up 250 basis points, and the core operating margin reached 20.6%. The results benefited from manufacturing efficiency, price increases, and $15 million in licensing revenue, so not all margin gains represent fully recurring improvement. In the first half of FY2026, the company generated $693 million in free cash flow and returned $538 million through dividends and share repurchases.
