Financial Data and Key Metrics Changes - Fourth quarter sales reached $2.7 billion, representing a 7% increase year-over-year [18] - Core gross margin was 62.5%, down 50 basis points year-over-year, primarily due to incremental tariffs [20] - Core diluted earnings per share were $0.78 for the quarter [21] Business Line Data and Key Metrics Changes - Surgical franchise revenue increased by 6% year-over-year to $1.5 billion, with implantable sales at $474 million, up 2% [18] - Vision Care sales were $1.2 billion, up 7%, with contact lens sales increasing by 4% to $683 million [19] - Ocular Health sales reached $474 million, up 12%, driven by strong performance in the dry eye portfolio, including Tryptyr and Systane [19] Market Data and Key Metrics Changes - Global cataract procedural volumes grew approximately 3% in the fourth quarter [17] - The global contact lens market grew approximately 4%, primarily driven by strength in the U.S. market [17] Company Strategy and Development Direction - The company is focused on innovation, with multiple product launches expected to drive growth, including the Unity VCS and CS platforms [8][9] - The company aims to expand its IOL portfolio with new products like PanOptix Pro and TruPlus, enhancing its competitive position [10][11] - The company is committed to optimizing its cost structure and supporting long-term margin expansion through efficiency measures [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while the markets showed improvement in the fourth quarter, they are not yet back to normal [32] - The outlook for 2026 assumes aggregate eye care market growth of 3%-4%, with top-line growth expected between 5% and 7% [22][23] - Management expressed confidence in sustaining a healthy double-digit growth rate in equipment sales due to strong demand for Unity products [39] Other Important Information - The company generated $1.7 billion of free cash flow in 2025, compared to $1.6 billion in 2024, enabling significant shareholder returns [21] - The board proposed a dividend of 28 Swiss centimes per share, aligning with the payout policy of approximately 10% of the previous year's core net income [25] Q&A Session Summary Question: Guidance visibility and market conditions - Management indicated that markets improved in the fourth quarter but are not yet back to normal, maintaining a balanced view for the upcoming year [32][33] Question: Equipment growth contribution from Unity - Unity significantly contributed to equipment growth, with strong demand and positive feedback from customers [39] Question: Tryptyr sales tracking and future expectations - Tryptyr is performing well, with management comfortable with peak sales estimates of $250 million to $400 million [41][42] Question: IOL market dynamics and growth expectations - The U.S. IOL market showed solid performance, with PanOptix Pro leading the way, while international markets faced more competition [52][54] Question: Surgeon capacity in the U.S. cataract market - Management noted that surgeon productivity is improving, with practices finding ways to increase surgery days [75][76] Question: Margin guidance and new product impact - Management expects continued price increases and leverage from new product launches to support margin improvement [78]