Alcon Inc. reported fourth‑quarter 2025 results, posting net sales of $2.702 billion, a 9% year‑over‑year increase and 7% on a constant‑currency basis. Diluted earnings per share fell to $0.44, a 23% decline from the prior year, while core diluted EPS rose to $0.78, reflecting an 8% increase in underlying profitability.
Revenue growth was driven by the Surgical and Vision Care segments. Surgical sales reached $1.5 billion, up 9% YoY, supported by launches of PanOptix Pro and the Unity platform. Vision Care sales climbed 9.8% YoY, with dry‑eye products and contact lenses contributing to a 13.9% rise in Ocular Health.
Operating income dropped to $313 million, a 21% decline, and the operating margin contracted to 11.6% from 15.9% in the prior year. Core operating margin fell to 19.0% from 20.1% as higher marketing spend on new product launches and increased tariff costs eroded profitability. The company’s core operating income figure was not disclosed.
Management guided 2026 sales growth to 5%–7% on a constant‑currency basis and projected a 70–170 basis‑point improvement in core operating margin. Adjusted earnings per share for 2026 were forecast at $3.35–$3.44, slightly below the consensus estimate of $3.37, indicating cautious optimism amid ongoing tariff and integration headwinds.
CEO David J. Endicott said, “2025 was a pivotal and productive year for Alcon. Despite softer markets, we successfully launched a wave of innovative new products that fueled sales acceleration as the year progressed.” He added that the company remains confident in its 2026 momentum, balancing growth initiatives with cost discipline. The company continues to invest in R&D and marketing while managing tariff exposure.
Investors reacted negatively to the earnings miss, reflecting concerns over margin compression and the modest guidance relative to the strong top‑line growth.
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