Alcon reports Q2 sales up 4% to $2.6 billion, launches new eye treatment

GENEVA - Alcon (SIX/NYSE:ALC), a global eye care company with a market capitalization of $44.57 billion, reported second-quarter 2025 sales of $2.6 billion, up 4% on a reported basis and 3% on a constant currency basis compared to the same period last year. According to InvestingPro data, the company maintains a "GREAT" financial health score, reflecting its strong market position in the Healthcare Equipment & Supplies industry.

The company posted diluted earnings per share of $0.35 for the quarter, down from $0.45 in the second quarter of 2024, while core diluted earnings per share rose slightly to $0.76 from $0.74 a year earlier. With a P/E ratio of 39.76, Alcon trades at a premium valuation, though InvestingPro analysis shows the stock trading near its 52-week low, potentially presenting an interesting opportunity for investors seeking exposure to the healthcare sector.

Alcon’s Vision Care segment showed the strongest performance with sales increasing 6% to $1.1 billion, driven primarily by a 9% rise in contact lens sales. The Surgical segment grew more modestly at 2% to $1.5 billion, with consumables up 6% while implantables declined 2%.

Operating income for the quarter was $247 million, down 22% from $318 million in the prior-year period. Operating margin decreased 3.2 percentage points, partly due to $44 million in charges related to a discontinued Vision Care product and increased research and development investments.

"Alcon is exiting the second quarter with solid momentum, despite a relatively soft surgical market in the first half of the year," said David J. Endicott, Alcon’s Chief Executive Officer, in a statement.

The company recently launched Tryptyr, a first-in-class treatment for dry eye disease in the US, and announced an agreement to acquire STAAR Surgical to expand its presence in myopia correction.

For the first half of 2025, Alcon generated $889 million in cash from operations and $681 million in free cash flow. The company returned $287 million to shareholders during the second quarter through share repurchases and dividend payments. With a strong current ratio of 2.7 and relatively low beta of 0.69, InvestingPro data indicates Alcon maintains both solid financial stability and lower volatility compared to the broader market. Get access to 12 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

Alcon updated its full-year 2025 outlook, lowering its net sales growth forecast to 4-5% from the previous 6-7%, and adjusting its core operating margin expectations to 19.5-20.5% from 20-21%. The company maintained its core diluted earnings per share guidance of $3.05 to $3.15.

This article is based on a press release statement from Alcon.

In other recent news, Alcon has announced its intention to acquire LumiThera, Inc. and its photobiomodulation (PBM) device for treating early and intermediate dry age-related macular degeneration (AMD). The PBM device has received FDA de novo market authorization and a CE Mark, making it a noteworthy addition to Alcon’s offerings. Additionally, Alcon’s UNITY Vitreoretinal Cataract System has received approval from Health Canada, enhancing its surgical capabilities by integrating vitreoretinal and cataract functions. Stifel has reiterated its Buy rating on Alcon, maintaining a price target of $100, citing the company’s leadership in the ophthalmology sector. The firm also noted potential stabilization in Alcon’s U.S. intraocular lens (IOL) business by 2025, driven by the PanOptix Pro product line. These developments underscore Alcon’s strategic moves in expanding its product portfolio and strengthening its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.