ALC's Q3 Earnings Beat, Revenues Miss, Stock Rises in After-Market Hours

Alcon, Inc. ALC delivered third-quarter 2025 core earnings per share (EPS) of 79 cents, down 2.5% from the year-ago quarter’s figure. At the constant exchange rate or CER, the figure decreased 4% year over year. However, the metric topped the Zacks Consensus Estimate by 2.6%.

Alcon reports “core” results based on non-IFRS (International Financial Reporting Standards) measures. In the third quarter, the company’s EPS was 48 cents, down 9.4% (14% at CER) year over year.

ALC’s Q3 Revenues in Detail

Net sales to third parties in the quarter under review were $2.59 billion, which missed the Zacks Consensus Estimate by 0.1%. However, the top line increased 6.4% from the year-ago quarter’s level (up 5% at CER).

Following the announcement, ALC's stock price rose 2.8% at after-market trading session yesterday.

Segmental Breakup of Alcon’s Q3 Revenues

Alcon reports operations through two segments — Surgical (comprising Implantables, Consumables and Equipment/Other) and Vision Care (comprising Contact Lenses and Ocular Health).

Surgical

Surgical sales amounted to $1.40 billion, up 6% year over year on a reported basis (up 5% at CER).

Within this, net sales in Implantables rose 2% at CER, reflecting the launch of PanOptix Pro, as well as continued competitive pressures.

Consumables net sales increased 5% at CER. The growth can be attributed to improving market conditions and price increases.

Equipment/Other net sales were up 13% at CER, reflecting recent equipment launches, including Unity VCS.

Vision Care

The segment reported total sales of $1.20 billion, up 7% year over year on a reported basis and 5% at CER.

Net sales of Contact Lenses increased 5% year over year at CER, driven by product innovation and price increases.

Ocular Health sales rose 6% year over year at CER, primarily driven by the products for dry eye and glaucoma, including Systane, Tryptyr and Rocklatan. The year-ago quarter included sales of certain eye drops in China, which were divested and out-licensed in late 2024.

ALC’s Q3 Margin Performance

The cost of net sales in the third quarter was $1.14 billion, up 6.8% year over year. The gross profit rose 6.1% to $1.45 billion. Meanwhile, the gross margin contracted 15 basis points (bps) to 56.1%.

SG&A expenses increased 6.9% year over year, while R&D expenses rose 11.1%. The operating margin contracted 71 bps in the third quarter to 13%.

Alcon’s Financial Position

Alcon exited the third quarter of 2025 with cash and cash equivalents of $1.50 billion compared with $1.41 billion at the end of the second quarter.

The cumulative net cash flow from operating activities at the end of the third quarter was $1.61 billion compared with $1.62 billion in the year-ago period. Free cash flow totaled $1.20 billion compared with $1.3 billion a year ago.

Alcon Price, Consensus and EPS Surprise

Alcon price-consensus-eps-surprise-chart | Alcon Quote

ALC’s 2025 Outlook

Alcon maintained its 2025 financial guidance.

The company now anticipates 2025 net sales to be in the range of $10.30-$10.40 billion, indicating year-over-year growth of 4-5% at CER. The Zacks Consensus Estimate for ALC’s revenues is pegged at $10.33 billion.

Core EPS for the full year is expected to be in the range of $3.05-$3.15. The revised growth forecast is 0-2% from the 2024 levels. The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.09 per share.

Our Take on Alcon’s Q3 Results

Alcon ended the third quarter of 2025 on a mixed note, wherein earnings beat estimates but revenues missed the same. The contraction of both margins in the quarter is also discouraging. 

On a promising note, Alcon is seeing encouraging early demand for its recent products. Unity VCS is gaining momentum across key markets with a robust orderbook, while PanOptix Pro has received strong surgeon adoption and Tryptyr is showing promising early uptake. These introductions position the company to accelerate top-line growth, generate cash and deliver long-term value for its shareholders. 

Additionally, Alcon recently announced a definitive merger agreement to acquire STAAR Surgical, which is set to expand its presence in myopia correction. The company also completed its acquisition of LumiThera, adding the Valeda PBM device, the only technology proven to deliver a one-line visual improvement in dry AMD patients after two years of treatment, to its portfolio.

ALC’s Zacks Rank & Other Key Picks

Alcon currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are Medpace Holdings MEDP, IDEXX Laboratories IDXX and Boston Scientific BSX.

Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.

IDEXX, carrying a Zacks Rank #2 at present, posted a third-quarter 2025 adjusted EPS of $3.40, which exceeded the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.

IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.

BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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