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Alcon Lifts 2026 Outlook Amid Higher First-half Sales, Lower Tariff Impact Forecast

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Alcon Lifts 2026 Outlook Amid Higher First-half Sales, Lower Tariff Impact Forecast

Alcon (ALC.SW) updated its outlook for 2026 amid lower tariff impact expectations as it delivered higher sales during the first half of the year, sending its shares up nearly 6% in Zurich as of midday Tuesday.

The Switzerland-based eye care products company now expects core diluted EPS growth in the range of 12% and 15% for the full year, higher than its previously guided 10% to 13%, according to a Monday evening release.

Core operating margin is projected to grow between 90 basis points and 190 basis points, against the prior expectation of 70 basis points to 170 basis points. The net sales growth guidance for 2026, meanwhile, was reaffirmed at between 5% and 7%.

The updated outlook is under the assumption of a lower full-year tariff impact and a refund from the US government in the third quarter.

"The tariff assumption was updated to a net impact of $40-90m (prev. $100-150m), including a $60m anticipated US government refund in Q3, of which c.two-thirds will be reinvested. The share count assumption moved to 488m (prev. 492m), reflecting the buyback programme which is running at a faster pace than the three-year headline suggests ($295m repurchased in Q2 alone, $1.2bn remaining after one quarter of execution)," analysts at RBC Capital Markets said in a quick take note. "There is potential further upside to FY guidance given H1 momentum, particularly in Equipment and Ocular Health, in our view."

For the six months ended June 30, the company's net sales climbed year over year to $5.47 billion from $5.03 billion, supported by a 9% increase in sales on a reported basis at both its surgical and vision care segments. Net income, on the other hand, fell to $189 million from $526 million, whereas EBITDA increased over the period to $1.41 billion from $1.37 billion.

"The current year period included a pre-tax, non-cash net charge of $402 million related to the discontinuation of the PowerVision programs, costs associated with efficiency measures, sales and marketing behind new product launches, impairment charges related to a currently marketed product intangible asset and incremental tariffs, partially offset by lower amortization and manufacturing efficiencies," the company said.

Alcon's core operating margin rose to 20.9% in the first half from the year-ago 19.9%, while core diluted EPS moved up to $1.69 from $1.50.

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