Revenue reached $2.7 billion in 2026Q1, yet operating margins remain pressured by SG&A costs, showing a decline from 18.9% in 2025Q1 to 15.5% in the most recent quarter.
| Sales/Revenue | 10.58B | 10.4B | 9.91B | 9.46B | 8.72B | 8.29B | 6.83B | 7.51B | 7.15B | 6.79B | 6.6B | 6.52B |
| Revenue Growth % | 6.61% | 4.94% | 4.82% | 8.47% | 5.14% | 21.34% | -8.99% | 4.96% | 5.32% | 2.97% | 1.2% | - |
| Cost of Goods Sold | 4.77B | 4.66B | 4.4B | 4.21B | 3.97B | 3.64B | 3.89B | 3.85B | 3.96B | 3.59B | 3.48B | 3.39B |
| COGS % of Revenue | - | 44.76% | 44.39% | 44.51% | 45.53% | 43.89% | 56.97% | 51.23% | 55.38% | 52.83% | 52.84% | 52.08% |
| Gross Profit | 5.81B | 5.75B | 5.51B | 5.25B | 4.75B | 4.65B | 2.94B | 3.66B | 3.19B | 3.2B | 3.11B | 3.12B |
| Gross Margin % | 54.95% | 55.24% | 55.62% | 55.49% | 54.47% | 56.11% | 43.03% | 48.77% | 44.62% | 47.17% | 47.16% | 47.92% |
| Gross Profit Growth % | - | 4.23% | 5.05% | 10.51% | 2.06% | 58.23% | -19.72% | 14.72% | -0.37% | 2.99% | -0.4% | - |
| Operating Expenses | 4.51B | 4.38B | 4.1B | 4.21B | 4.08B | 4.07B | 3.42B | 3.85B | 3.44B | 3.28B | 3.1B | 2.72B |
| OpEx % of Revenue | - | 42.16% | 41.36% | 44.51% | 46.76% | 49.11% | 50.08% | 51.27% | 48.09% | 48.31% | 47.01% | 41.77% |
| Selling, General & Admin | 3.48B | 3.45B | 3.25B | 3.21B | 3.07B | 3.08B | 2.69B | 2.85B | 2.8B | 2.6B | 2.53B | 2.25B |
| SG&A % of Revenue | - | 33.16% | 32.79% | 33.94% | 35.2% | 37.1% | 39.43% | 37.92% | 39.16% | 38.22% | 38.3% | 34.49% |
| Research & Development | 1.01B | 990M | 876M | 859M | 702M | 842M | 673M | 656M | 587M | 584M | 499M | 440.56M |
| R&D % of Revenue | - | 9.52% | 8.84% | 9.09% | 8.05% | 10.16% | 9.85% | 8.74% | 8.21% | 8.6% | 7.57% | 6.76% |
| Other Operating Expenses | 1000K | -54M | -27M | 140M | 306M | 154M | 55M | 346M | 52M | 101M | 76M | 33.67M |
| Operating Income | 1.3B | 1.36B | 1.41B | 1.04B | 672M | 580M | -482M | -187M | -248M | -77M | 10M | 401.12M |
| Operating Margin % | 12.31% | 13.08% | 14.26% | 10.99% | 7.71% | 7% | -7.05% | -2.49% | -3.47% | -1.13% | 0.15% | 6.15% |
| Operating Income Growth % | - | -3.75% | 36% | 54.61% | 15.86% | 220.33% | -157.75% | 24.6% | -222.08% | -870% | -97.51% | - |
| EBITDA | 2.17B | 2.55B | 2.64B | 2.26B | 1.83B | 1.8B | 1.24B | 1.28B | 1.38B | 1.24B | 1.26B | 1.61B |
| EBITDA Margin % | 20.53% | 24.53% | 26.65% | 23.9% | 21.01% | 21.73% | 18.17% | 16.99% | 19.27% | 18.27% | 19.09% | 24.75% |
| EBITDA Growth % | 2.98% | -3.41% | 16.86% | 23.37% | 1.68% | 45.13% | -2.67% | -7.45% | 11.04% | -1.46% | -21.93% | - |
| D&A (Non-Cash Add-back) | 866.05M | 1.19B | 1.23B | 1.22B | 1.16B | 1.22B | 1.72B | 1.46B | 1.63B | 1.32B | 1.25B | 1.21B |
| EBIT | 1.26B | 1.16B | 1.45B | 1.02B | 616.59M | 539.14M | -542.6M | -206.28M | -274M | -101M | -82M | 354.95M |
| Net Interest Income | -221.99M | -204M | -104.73M | -155M | -121.87M | -117.25M | -125.3M | -126.23M | -21.84M | -27M | -29.08M | -16.35M |
| Interest Income | 0 | 0 | 81.45M | 34M | 16.52M | 3.01M | 6.37M | 8.21M | 1.99M | 0 | 969.32K | 961.92K |
| Interest Expense | 152.99M | 0 | 186.18M | 189M | 138.4M | 120.26M | 131.67M | 134.44M | 23.83M | 27M | 30.05M | 17.31M |
| Other Income/Expense | -321.52M | -200M | -157M | -207M | -209M | -162M | -153M | -145M | -52M | -50M | -123M | -63.49M |
| Pretax Income | 981.34M | 1.16B | 1.26B | 832M | 463M | 418M | -635M | -332M | -300M | -127M | -113M | 337.63M |
| Pretax Margin % | 9.27% | 11.15% | 12.67% | 8.8% | 5.31% | 5.04% | -9.29% | -4.42% | -4.19% | -1.87% | -1.71% | 5.18% |
| Income Tax | 166.01M | 180M | 238M | -142M | 128M | 42M | -104M | 324M | -73M | -383M | 57M | 41.36M |
| Effective Tax Rate % | 16.92% | 15.52% | 18.95% | -17.07% | 27.65% | 10.05% | 16.38% | -97.59% | 24.33% | 301.57% | -50.44% | 12.25% |
| Net Income | 815.33M | 980M | 1.02B | 974M | 335M | 376M | -531M | -656M | -227M | 256M | -170M | 296.27M |
| Net Margin % | 7.71% | 9.42% | 10.27% | 10.3% | 3.84% | 4.54% | -7.77% | -8.74% | -3.17% | 3.77% | -2.58% | 4.55% |
| Net Income Growth % | -27.2% | -3.73% | 4.52% | 190.75% | -10.9% | 170.81% | 19.05% | -188.99% | -188.67% | 250.59% | -157.38% | - |
| Net Income (Continuing) | 815.33M | 980M | 1.02B | 974M | 335M | 376M | -531M | -656M | -227M | 256M | -170M | 296.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.01M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.66 | 1.98 | 2.05 | 1.96 | 0.68 | 0.76 | -1.09 | -1.34 | -0.46 | 0.52 | -0.35 | 0.61 |
| EPS Growth % | -26.67% | -3.41% | 4.59% | 188.24% | -10.53% | 169.72% | 18.66% | -191.3% | -188.46% | 248.57% | -157.38% | - |
| EPS (Basic) | - | 1.99 | 2.06 | 1.98 | 0.68 | 0.77 | -1.09 | -1.34 | -0.46 | 0.52 | -0.35 | 0.61 |
| Diluted Shares Outstanding | 490.2M | 496.2M | 497.5M | 496.5M | 494.4M | 493.4M | 489M | 488.2M | 488.7M | 488.7M | 488.7M | 488.7M |
| Basic Shares Outstanding | 487.2M | 494.95M | 494.4M | 493M | 491.4M | 490M | 489M | 488.2M | 488.7M | 488.7M | 488.7M | 488.7M |
| Dividend Payout Ratio | - | 16.94% | 12.77% | 11.91% | 30.83% | 14.39% | - | - | - | - | - | - |
Operating margin volatility
According to the latest quarterly income statements, Alcon has maintained a steady revenue growth trajectory, reaching $2.7 billion in 2026Q1, which represents a 7.3% year-over-year increase, signaling that the firm's core surgical and vision care segments continue to capture market share despite broader macroeconomic headwinds.
The revenue growth appears durable, supported by the recurring nature of the surgical consumable business and the steady demand for premium contact lenses. Investors should monitor whether this growth remains organic or if it becomes increasingly reliant on inorganic contributions from recent acquisitions like Aerie Pharmaceuticals.
As reported in financial filings, Alcon’s gross margin has remained remarkably consistent, hovering near the 55% level over the last ten quarters, which suggests that the company’s high-value intraocular lens portfolio and precision manufacturing capabilities provide a robust defense against inflationary pressures on raw material costs.
This margin profile indicates significant pricing power within the ophthalmic surgery market, where specialized consumables are essential for installed surgical consoles. However, the lack of meaningful margin expansion warrants further investigation into whether rising manufacturing throughput is being offset by higher input costs or product mix shifts.
Based on the provided income statement data, Alcon’s operating margin has exhibited significant volatility, fluctuating from a high of 18.9% in 2025Q1 down to 11.5% in 2025Q4, indicating that SG&A expenses are not scaling efficiently in proportion to the company's top-line revenue growth.
The persistent burden of SG&A, likely driven by the technical sales force required to support surgical suites, appears to be masking the underlying profitability of the surgical ecosystem. This suggests that management may struggle to achieve meaningful operating leverage until the installed base reaches a critical mass that reduces the intensity of required sales support.
Data from recent quarterly reports reveals that net income has experienced substantial swings, with EPS dropping from $0.70 in 2025Q1 to $0.38 in 2026Q1, a trend that appears heavily influenced by non-operating items and periodic fluctuations in stock-based compensation and other accounting adjustments.
The divergence between core revenue growth and bottom-line EPS performance suggests that investors should focus on adjusted earnings metrics to gauge true operational health. The periodic spikes in expenses, such as the $118 million negative impact in 2025Q4, indicate that reported net income may not be a reliable proxy for the company's underlying cash-generating capability.
Analysis of the cost structure shows that SG&A remains the primary expense line item, consistently consuming over 30% of revenue, which highlights the high cost of maintaining a global regulatory and technical footprint in the competitive medical instruments and supplies industry.
While R&D spending remains relatively stable as a percentage of revenue, the variability in SG&A suggests that management has yet to fully optimize its global commercial infrastructure. Future margin improvement will likely depend on the firm's ability to streamline these overhead costs without compromising its competitive moat in the surgical space.
Quick answers to the most common questions about buying ALC stock.
For fiscal year 2025, Alcon Inc. (ALC) reported total revenue of $10.40B. This represents a 59.6% increase compared to $6.52B in 2015.
Alcon Inc. (ALC) is profitable, generating $980.0M in net income for the fiscal year ending 2025 with a net profit margin of 9.4%.
Alcon Inc. (ALC) reported an operating income of $1.36B, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Alcon Inc. (ALC) generated $5.75B in gross profit for the year, representing a gross profit margin of 55.2%. This demonstrates the company's core pricing power and production efficiency.