Alcon(US:ALC) ZACKS·2026-02-25 13:50Core Insights - Alcon, Inc. reported fourth-quarter 2025 core earnings per share (EPS) of 78 cents, an increase of 8.3% year-over-year, but missed the Zacks Consensus Estimate by 0.76% [1] - The full-year core EPS for 2025 was $3.07, reflecting a 0.7% year-over-year increase and aligning with the Zacks Consensus Estimate [2] Revenue Performance - Alcon's net sales for the fourth quarter were $2.70 billion, slightly missing the Zacks Consensus Estimate by 0.2%, but showing a 9% increase year-over-year (7% at constant exchange rates) [3] - For the full year 2025, net sales totaled $10.32 billion, up 4.9% year-over-year, matching the Zacks Consensus Estimate [3] Segment Analysis - Surgical segment sales reached $1.5 billion, up 9% year-over-year (6% at constant exchange rates), with notable growth in Implantables and Equipment/Other categories [5] - Vision Care segment reported total sales of $4.60 billion, a 6% year-over-year increase (5% at constant exchange rates), driven by innovations in Contact Lenses and Ocular Health products [6] Margin and Cost Analysis - The cost of net sales in Q4 was $1.20 billion, up 8.8% year-over-year, while gross profit increased by 9.3% to $1.51 billion, resulting in a gross margin expansion of 12 basis points to 56% [7] - SG&A expenses rose by 12.3% year-over-year, and R&D expenses increased by 17.7%, leading to a contraction of the operating margin by 158 basis points to 12.5% [7] Future Outlook - Alcon projects 2026 sales growth of 5%-7% and core EPS growth of 9%-12%, with the Zacks Consensus Estimate for 2026 earnings at $3.37 per share, indicating a 9.7% improvement [10] - The company launched several innovative products throughout 2025, contributing to sales acceleration and a balanced outlook for 2026 [12] Financial Position - At the end of Q4 2025, Alcon had cash and cash equivalents of $1.53 billion, down from $1.68 billion at the end of 2024, while cumulative net cash flow from operating activities increased to $2.27 billion [9]