Alcon Inc. ALC delivered second-quarter 2026 core earnings per share (EPS) of 84 cents, up 10.5% year over year. The figure beat the Zacks Consensus Estimate by 9.09%.
The company reports core results based on non-IFRS (International Financial Reporting Standards) measures. In the second quarter, EPS was nil compared with 35 cents in the year-ago quarter.
Net sales of $2.78 billion rose 8% and topped the consensus estimate by 0.58%.
Following the announcement, ALC's stock price rose 3.2% during the after-market trading session yesterday.
Segmental Breakup of Alcon’s Q2 Revenues
Alcon’s Surgical sales amounted to $1.57 billion, up 8% year over year on a reported basis and 7% at constant currency. Within this, Implantables net sales increased 1% at constant currency to $466 million, primarily driven by strong performance of PanOptix Pro, partially offset by lower sales in surgical glaucoma and competitive pressures.
Consumables net sales rose 5% at constant currency to $825 million, driven by procedural growth and price increases despite continued softness in the cataract market. Equipment/Other net sales jumped 25% at constant currency to $279 million, led by recent equipment launches, including the Unity platform.
Alcon Price, Consensus and EPS Surprise
Alcon price-consensus-eps-surprise-chart | Alcon Quote
Within Vision Care, total sales came to $1.21 billion, up 8% year over year on a reported basis and 7% at constant currency. Contact Lenses net sales rose 5% to $726 million, reflecting product innovation and price increases, partially offset by declines in legacy products.
Ocular Health sales increased 12% at constant currency to $486 million, primarily led by Alcon’s portfolio of dry-eye products, including Tryptyr and Systane.
ALC’s Q2 Margin Performance
The cost of net sales in the second quarter was $1.13 billion, down 5.5% year over year. Gross profit rose 20.7% to $1.68 billion. The gross margin expanded 630 basis points (bps) to 60.2%.
SG&A expenses increased 10.8% year over year, while R&D expenses surged 170.6%, largely reflecting the PowerVision-related impairment charge. The operating margin contracted 920 bps in the second quarter to 0.4%.
Alcon’s Financial Position
Alcon exited the second quarter of 2026 with cash and cash equivalents of $1.36 billion compared with $1.58 billion at March-end.
The cumulative net cash flow from operating activities at the end of the second quarter was $928 million compared with $889 million in the year-ago period. Free cash flow totaled $693 million compared with $681 million a year ago.
Alcon Raises 2026 Profitability Outlook
Alcon maintained its 2026 constant-currency net sales growth outlook of 5%-7%. The Zacks Consensus Estimate for 2026 revenues is pegged at $11.08 billion, up 7.3% from the 2025 levels.
The company lifted core diluted EPS growth guidance to 12%-15% from the previous 10%-13% range. The consensus mark for the company’s 2026 earnings stands at $3.50 per share, indicating 14% growth.
Our Take on Alcon’s Q2 Results
Alcon ended the second quarter of 2026 with both earnings and revenues surpassing their respective estimates. Both top and bottom lines improved on a year-over-year basis. Equipment/Other sales benefited from recent launches, including the Unity platform, while Ocular Health growth was driven by the dry-eye portfolio, including Tryptyr and Systane. The raised EPS guidance for the year is also encouraging. However, Implantables continued to face competitive pressures, while softness in the cataract procedure market remained a headwind.
ALC’s Zacks Rank & Key Picks
Alcon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP.
Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.
DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.
Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.
MEDP has a historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alcon (ALC): Free Stock Analysis Report
Labcorp Holdings Inc. (LH): Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).