Alcon's Q4 Earnings Miss Estimates, Stock Falls, Revenues Rise Y/Y

Alcon, Inc. ALC delivered fourth-quarter 2025 core earnings per share (EPS) of 78 cents, up 8.3% from the year-ago quarter’s figure. At the constant exchange rate or CER, the figure rose 2% year over year. The metric missed the Zacks Consensus Estimate by 0.76%.

Alcon reports core results based on non-IFRS (International Financial Reporting Standards) measures. In the fourth quarter, the company’s diluted EPS was 44 cents, down 22.8% (30% at CER) year over year.

The full-year core EPS was $3.07, up 0.7% year over year (0% at CER). The figure came in line with the Zacks Consensus Estimate.

ALC’s Revenues in Detail

Net sales to fourth parties in the quarter under review were $2.70 billion, which missed the Zacks Consensus Estimate by 0.2%. However, the top line increased 9% from the year-ago quarter’s level (up 7% at CER).

Full-year 2025 net sales to third parties totaled $10.32 billion, up 4.9% year over year. The figure also matched the Zacks Consensus Estimate. 

Following the announcement, ALC's stock price fell 3.1% during the after-market trading session yesterday.

Segmental Breakup of Alcon’s Q4 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 $1.5 billion, up 9% year over year on a reported basis (up 6% at CER). Within this, net sales in Implantables rose 2% at CER, reflecting strong performance by PanOptix Pro in the United States.

Alcon Price, Consensus and EPS Surprise

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

Consumables net sales increased 5% at CER, driven by cataract and vitreoretinal procedural growth, as well as price increases. Equipment/Other net sales were up 18% at CER, reflecting recent equipment launches, including the Unity platform.

Vision Care

The segment reported total sales of $4.60 billion, up 6% 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 led by the portfolio of dry eye products, including Tryptyr and Systane. The year-ago quarter included sales of certain eye drops in China, which were divested and out-licensed in late 2024.

ALC’s Q4 Margin Performance

The cost of net sales in the fourth quarter was $1.20 billion, up 8.8% year over year. The gross profit rose 9.3% to $1.51 billion. The gross margin expanded 12 basis points (bps) to 56%.

SG&A expenses increased 12.3% year over year, while R&D expenses rose 17.7%. The operating margin contracted 158 bps in the fourth quarter to 12.5%.

Alcon’s Financial Position

Alcon exited the fourth quarter of 2025 with cash and cash equivalents of $1.53 billion compared with $1.68 billion at the end of 2024.

The cumulative net cash flow from operating activities at the end of the fourth quarter was $2.27 billion compared with $2.08 billion in the year-ago period. Free cash flow totaled $1.73 billion compared with $1.60 billion a year ago.

ALC’s 2026 Outlook

Alcon initiated its 2026 guidance. The company anticipates full-year net sales to grow in the range of 5%-7%. The Zacks Consensus Estimate for ALC’s revenues is pegged at $11.05 billion, implying 7% growth.

Core EPS growth for the full year is expected to be 9%-12% compared with 2025. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3.37 per share, calling for a 9.7% improvement.

Our Take on Alcon’s Q4 Results

Alcon ended the fourth quarter of 2025 with both earnings and revenues missing respective estimates. Implantable sales were affected by continued competitive pressures, particularly in international markets. Within Vision Care, contact lens net sales were affected by declines in legacy products. The contraction of the adjusted operating margin in the quarter is also discouraging.

However, both top and bottom lines were up on a year-over-year basis. Throughout 2025, Alcon launched a wave of innovative products that fueled sales acceleration as the year progressed. The company’s 2026 outlook reflects a balanced view of market conditions, alongside the progress made with new product launches.

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 Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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

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