Financial Data and Key Metrics Changes - Alcon's Q2 2025 sales reached $2.6 billion, reflecting a 3% increase year-over-year, consistent with Q1 performance [27] - Core gross margin for Q2 was 62.2%, in line with the previous year, while core operating margin decreased by 100 basis points to 19.1% due to increased R&D investments [31] - Core diluted earnings per share were $0.76, broadly in line with the previous year on a constant currency basis [31] Business Line Data and Key Metrics Changes - Surgical franchise revenue increased by 1% year-over-year to $1.5 billion, with implantable sales down 2% to $456 million due to soft market conditions and competitive pressures [27][28] - Vision Care sales rose by 5% to $1.1 billion, with contact lens sales up 7% to $692 million, driven by product innovation and price increases [29] - Oculo Health sales were $430 million, up 2% year-over-year, led by eye drops, partially offset by declines in contact lens care [30] Market Data and Key Metrics Changes - Global cataract volumes grew approximately low single digits in Q2, compared to a historical average of about 4% [25] - The retail market for contact lenses grew mid single digits during the quarter [25] Company Strategy and Development Direction - Alcon is focused on acquiring transformative technologies in eye care, with recent acquisitions including the Voyager Direct device for glaucoma and STAR for refractive surgery [8][9] - The company aims to leverage its broader commercial infrastructure to accelerate adoption of new products and expand its presence in high-growth markets like China [11][12] - Alcon's strategy includes driving organic growth through innovation and execution, with a robust pipeline and strategic expansion planned for 2026 and beyond [7][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term durability of end markets and the resilience of customers despite softer market conditions in the first half of the year [6][7] - The company anticipates a gradual return to historical growth rates in surgical procedures, driven by an aging population and increasing cataract prevalence [57][58] - Alcon expects to fully offset tariff impacts through foreign exchange and operational actions, maintaining a focus on innovation and cost discipline [32][33] Other Important Information - Alcon generated $681 million in free cash flow in the first half of the year, enabling $287 million in returns to shareholders through share repurchases and dividends [32] - The company incurred $27 million in tariff-related charges during Q2, with an expected full-year impact of approximately $100 million on cost of sales [32] Q&A Session Summary Question: Stability in PCIOLs share in the U.S. and international markets - Management noted a sequential improvement in U.S. share by about four points, attributed to the successful reception of PanOptix Pro, while acknowledging competitive pressures in international markets [43][46] Question: Outlook for 2026 and impact of recent acquisitions - Management refrained from providing specific guidance for 2026 but expressed confidence in the strategic value of recent acquisitions, emphasizing the importance of synergies and operational support [51][53] Question: Market weakness and outlook for recovery - Management highlighted that the aging population and increasing cataract prevalence underpin confidence in future growth, despite current market normalization [57][58] Question: Unity VCS order book and placements - Management reported over 1,000 qualified leads for Unity VCS within ten weeks of launch, emphasizing a deliberate ramp-up in installations to ensure proper training and support for surgeons [62][64] Question: Performance of SUSTAIN and competitive dynamics - Management indicated mid to high single-digit growth for SUSTAIN, noting a market pop due to competitor advertising, while addressing supply issues affecting some products [92][94] Question: Growth outlook for STAR and local competition in China - Management acknowledged local competition in China but expressed confidence in the long-term growth potential of the EVO ICL platform, supported by Alcon's critical mass and market presence [96][99]