Alcon Delivers Solid Third-Quarter 2025 Results with Accelerated Growth in Equipment and Ocular Health; Unity VCS Momentum Builds

• Third-quarter 2025 sales of $2.6 billion, up 6% on a reported basis, or up 5% constant currency¹ (cc), versus third-quarter 2024
• Third-quarter 2025 diluted EPS of $0.48; core diluted EPS² of $0.79
• Generated $1.6 billion cash from operations and $1.2 billion free cash flow³ in the first nine months of 2025. Also returned $550 million to shareholders
• Full-year 2025 guidance maintained

Ad Hoc Announcement Pursuant to Art. 53 LR

GENEVA–(BUSINESS WIRE)–Regulatory News:

Alcon (SIX/NYSE:ALC), the global leader in eye care, reported its financial results for the three and nine month periods ending September 30, 2025. For the third quarter of 2025, sales were $2.6 billion, up 6% on a reported basis and up 5% on a constant currency basis¹, as compared to the same quarter of the previous year. Alcon reported diluted earnings per share of $0.48 and core diluted earnings per share² of $0.79 in the third quarter of 2025.

“As expected, we saw encouraging topline growth in the third quarter, driven by strong acceleration in equipment,” said David J. Endicott, Alcon’s Chief Executive Officer. “Unity VCS is gaining traction across key markets and our orderbook remains strong. With PanOptix Pro resonating well with surgeons and early uptake of Tryptyr showing promise, we’re laying the groundwork for a solid 2026.”

Third-quarter and first nine months of 2025 results

Reported net sales for the third quarter of 2025 were $2.6 billion, up 6% versus the third quarter of 2024. Excluding favorable currency impacts of 1%, sales were up 5% on a constant currency basis. Reported net sales for the first nine months of 2025 were $7.6 billion, up 4% versus the first nine months of 2024. Excluding favorable currency impacts of 1%, sales were up 3% on a constant currency basis.

The following table highlights net sales by segment for the third quarter and first nine months of 2025:

Net sales by segment

Third quarter

Surgical

Surgical net sales, which include implantables, consumables and equipment/other, were $1.4 billion, an increase of 6% on a reported basis and 5% on a constant currency basis versus the third quarter of 2024.

• Implantables net sales were $432 million, an increase of 2% on a reported and constant currency basis, reflecting the launch of PanOptix Pro, as well as continued competitive pressures.

• Consumables net sales were $745 million, an increase of 6%. Excluding favorable currency impacts of 1%, Consumables net sales increased 5% constant currency, reflecting improving market conditions and price increases.

• Equipment/other net sales were $243 million, an increase of 13% on a reported and constant currency basis. This growth was led by recent equipment launches, including Unity VCS.

Vision Care

Vision Care net sales, which include contact lenses and ocular health, were $1.2 billion, an increase of 7% on a reported basis and 5% on a constant currency basis versus the third quarter of 2024.

• Contact lenses net sales were $707 million, an increase of 6%. Excluding favorable currency impacts of 1%, Contact lenses net sales increased 5% constant currency. Growth was driven by product innovation and price increases, partially offset by declines in legacy products.

• Ocular health net sales were $462 million, an increase of 7%. Excluding favorable currency impacts of 1%, Ocular health net sales increased 6% constant currency. Growth was led by products for dry eye and glaucoma, including Systane, Tryptyr and Rocklatan, partially offset by declines in contact lens care. The prior year period included sales of certain eye drops in China which were divested and out-licensed in late 2024.

Nine months

Surgical

Surgical net sales were $4.2 billion, an increase of 3% on a reported and constant currency basis versus the first nine months of 2024.

• Implantables net sales were $1.3 billion, a decrease of 1%. Excluding unfavorable currency impacts of 1%, Implantables net sales were in line with the prior year period in constant currency, reflecting soft market conditions and competitive pressures.

• Consumables net sales were $2.2 billion, an increase of 5% on a reported and constant currency basis. Growth was led by vitreoretinal and cataract consumables, particularly in international markets, and price increases.

• Equipment/other net sales were $664 million, an increase of 1% on a reported and constant currency basis, as sales of recently launched equipment, including Unity VCS, were partially offset by declines in legacy equipment.

Vision Care

Vision Care net sales were $3.4 billion, an increase of 5% on a reported basis and 4% on a constant currency basis versus the first nine months of 2024.

• Contact lenses net sales were $2.1 billion, an increase of 6%. Excluding favorable currency impacts of 1%, Contact lenses net sales increased 5% constant currency, primarily driven by product innovation and price increases, partially offset by declines in legacy products.

• Ocular health net sales were $1.3 billion, an increase of 3% on a reported and constant currency basis. Growth was led by products for dry eye and glaucoma, including Systane and Rocklatan, partially offset by declines in contact lens care. The prior year period included sales of certain eye drops in China which were divested and out-licensed in late 2024.

Operating income

Third quarter

Operating income was $332 million (0%, -3% cc), in line with the prior year period on a reported basis. Operating margin decreased 0.8 percentage points. The current year period included incremental tariffs, sales and marketing investments behind new product launches and increased investment in research and development (“R&D”), including from recent acquisitions, partially offset by manufacturing efficiencies and price increases. Excluding a positive 0.3 percentage point impact from currency, operating margin decreased 1.1 percentage points on a constant currency basis.

Adjustments to arrive at core operating income in the current year period were $191 million, mainly due to $176 million of amortization and $13 million of acquisition and integration related items. Adjustments to arrive at core operating income in the prior year period were $169 million, mainly due to $167 million of amortization.

Core operating income was $523 million (+4%, +2% cc), compared to $501 million in the prior year period. Core operating margin decreased 0.4 percentage points as the current year period included incremental tariffs, sales and marketing investments behind new product launches and increased investment in R&D, including from recent acquisitions, partially offset by manufacturing efficiencies and price increases. Excluding a positive 0.2 percentage point impact from currency, core operating margin decreased 0.6 percentage points on a constant currency basis.

Nine months

Operating income was $1.0 billion (+3%, +3% cc) in both current and prior year periods. Operating margin decreased 0.1 percentage points. The current year period included incremental tariffs, increased investment in R&D, including from recent acquisitions, $44 million of product discontinuation charges in Vision Care, $36 million of acquisition and integration related items and a negative 0.1 percentage point impact from currency. The decline in operating margin was partially offset by $142 million on fair value remeasurements of investments in associated companies and price increases. Operating margin was in line with the prior year period on a constant currency basis.

Adjustments to arrive at core operating income in the current year period were $478 million, mainly due to $521 million of amortization, $44 million of product discontinuation charges and $36 million of acquisition and integration related items, partially offset by $142 million on fair value remeasurements of investments in associated companies. Adjustments to arrive at core operating income in the prior year period were $511 million, mainly due to $498 million of amortization.

Core operating income was $1.5 billion (0%, 0% cc) in both the current and prior year periods. Core operating margin decreased 0.8 percentage points. The current year period included incremental tariffs, increased investment in R&D, including from recent acquisitions and a negative 0.1 percentage point impact from currency, partially offset by price increases. Core operating margin decreased 0.7 percentage points on a constant currency basis.

Taxes

Third quarter

Reported tax expense was $46 million, compared to $29 million in the prior year period, and the average reported tax rate was 16.3%, compared to 9.9% in the prior year period. Core tax expense was $80 million, compared to $59 million in the prior year period, and the average core tax rate was 16.9%, compared to 12.8% in the prior year period. Both the average reported and core tax rates were higher in the current year period due to a less favorable mix of pre-tax income/(loss) across geographical tax jurisdictions and higher discrete tax benefits in the prior year period.

Nine months

Reported tax expense was $133 million, compared to $173 million in the prior year period, and the average reported tax rate was 14.8%, compared to 19.1% in the prior year period. Core tax expense was $240 million, compared to $262 million in the prior year period, and the average core tax rate was 17.4%, compared to 18.5% in the prior year period. The average reported tax rate was lower in the current year period due to a non-taxable gain. In addition, both the average reported and core tax rates benefited from higher discrete tax benefits in the current year period.

Diluted earnings per share

Third quarter

Diluted earnings per share of $0.48 decreased 9%, or 14% on a constant currency basis, versus the prior year period, primarily due to higher tax expense. Core diluted earnings per share of $0.79 decreased 2%, or 4% on a constant currency basis, versus the prior year period.

Nine months

Diluted earnings per share of $1.53 increased 3%, or 4% on a constant currency basis, primarily due to higher operating income, including gains of $142 million on fair value remeasurements of investments in associated companies, partially offset by $44 million of product discontinuation charges, and lower tax expense. Core diluted earnings per share of $2.29 decreased 2%, or 1% on a constant currency basis, versus the prior year period.

Cash flow highlights

Net cash flows from operating activities amounted to $1.6 billion in the first nine months of 2025, in line with the prior year period. Free cash flow was $1.2 billion in the first nine months of 2025, compared to $1.3 billion in the prior year period, primarily due to increased capital expenditures.

During the first nine months of 2025, the company returned $550 million to shareholders. Capital returns include the repurchase of approximately 4.6 million shares⁴ for $384 million and dividend payments of $166 million.

2025 outlook

The Company maintained its previously communicated full-year 2025 outlook.

This outlook assumes the following:

• Aggregated markets grow approximately low-single digits;
• Tariff rates and exemptions announced as of November 10, 2025 persist through the end of the year. The Company expects a full-year gross tariff impact of approximately $100 million, which is expected to pressure cost of net sales. The Company anticipates fully offsetting this impact through foreign exchange as well as operational actions;
• Exchange rates as of the end of October prevail through year-end;
• Approximately 497 million weighted-averaged diluted shares.⁶

Webcast and Conference Call Instructions

The Company will host a conference call on November 12, 2025 at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss its third-quarter 2025 earnings results. The webcast can be accessed online through Alcon’s Investor Relations website, i.e. investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available online within 24 hours after the event. To listen the Company’s conference call, click on the link:

https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Third-Quarter-2025-Earnings-Conference-Call-2025-8ylj38YvL1/default.aspx

The Company’s third-quarter 2025 press release, interim financial report and supplemental presentation materials can be found online through Alcon’s Investor Relations website, or by clicking on the link:

https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Third-Quarter-2025-Earnings-Conference-Call-2025-8ylj38YvL1/default.aspx

Cautionary Note Regarding Forward-Looking Statements

This document contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our 2025 outlook, liquidity, revenue, gross margin, operating margin, effective tax rate, foreign currency exchange movements, earnings per share, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our market growth assumptions, our social impact and sustainability plans, targets, goals and expectations, and generally, our expectations concerning our future performance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict such as: cybersecurity breaches or other disruptions of our information technology systems; our ability to effectively manage the risks associated with the ethical use of disruptive technologies; compliance with data privacy, identity protection and information security laws, particularly with the increased use of artificial intelligence; the impact of a disruption in our global supply chain, including the effect of tariffs, or important facilities, particularly when we single-source or rely on limited sources of supply; our ability to manage social impact and sustainability matters; our reliance on outsourcing key business functions; global and regional economic, financial, monetary, legal, tax, political and social change; the increasingly challenging economic, political and legal environment in China; terrorism, war and other resulting events such as economic sanctions and trade restrictions; our ability to manage the risks associated with operating as a third party contract manufacturer; our ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers; our success in completing and integrating strategic acquisitions, including equity investments in early-stage companies; the success of our research and development efforts, including our ability to innovate to compete effectively; our ability to comply with the US Foreign Corrupt Practices Act of 1977 and other applicable anti-corruption laws; pricing pressure from changes in third party payor coverage and reimbursement methodologies; our ability to properly educate and train healthcare providers on our products; our ability to protect our intellectual property; our ability to comply with all laws to which we may be subject; the ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing; the effect of product recalls or voluntary market withdrawals; the accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets; the impact of unauthorized importation of our products from countries with lower prices to countries with higher prices; our ability to service our debt obligations; the need for additional financing through the issuance of debt or equity; the effects of litigation, including product liability lawsuits and governmental investigations; supply constraints and increases in the cost of energy; our ability to attract and retain qualified personnel; legislative, tax and regulatory reform; the impact of being listed on two stock exchanges; the ability to declare and pay dividends; the different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; the effect of maintaining or losing our foreign private issuer status under US securities laws; and the ability to enforce US judgments against Swiss corporations.

Additional factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this document speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise. We also undertake no obligation to update the 2025 outlook as circumstances evolve.

Intellectual Property

This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a “®” or a “™” are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.

Non-IFRS measures as defined by the Company

Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currency, EBITDA, free cash flow and net (debt)/liquidity.

Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures.

Core results

Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, product discontinuation charges, net gains and losses on fund investments and equity securities valued at fair value through profit and loss (“FVPL”), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, fair value remeasurements of investments in associated companies and certain acquisition related items. The following items that exceed a threshold of $10 million, are not operating expenses necessary to the operation of the business and have costs that will vary over periods are also excluded from core results: integration and divestment related income and expenses, divestment gains and losses, restructuring charges/releases and related items, legal related items, gains/losses on early extinguishment of debt or debt modifications, past service costs for post-employment benefit plans, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a $10 million threshold.

Contacts

Investor Relations
Daniel Cravens

Allen Trang

+ 41 589 112 110 (Geneva)

+ 1 817 615 2789 (Fort Worth)

[email protected]

Media Relations
Steven Smith

+ 41 589 112 111 (Geneva)

+ 1 817 551 8057 (Fort Worth)

[email protected]

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