Alcon Delivers Solid Q2 2025 Results, Launches Tryptyr, and Announces Strategic Acquisition of STAAR Surgical
Alcon (SIX/NYSE: ALC), the global leader in eye care, reported its financial results for the second quarter and first half of 2025, ending June 30. The company posted steady sales growth, highlighted the successful early uptake of several product launches including Tryptyr, and announced its intention to acquire STAAR Surgical, a leading provider of implantable lenses for the treatment of myopia.
Financial Performance Overview
For the second quarter of 2025, Alcon reported net sales of $2.6 billion, an increase of 4% on a reported basis and 3% at constant currency compared with the same quarter in 2024. Diluted earnings per share (EPS) came in at $0.35, while core diluted EPS reached $0.76, reflecting 3% growth year-over-year.
For the first half of 2025, total net sales amounted to $5.0 billion, up 2% compared to the prior year. On a constant currency basis, growth was 3%, offset by unfavorable exchange rate impacts.
CEO David J. Endicott emphasized that Alcon is building momentum despite a softer surgical market environment in the first half of the year. He highlighted strong demand for newly launched products such as Unity VCS, Voyager, PanOptix Pro, Precision7, Systane Pro PF, and Tryptyr, positioning the company for accelerated growth in the coming quarters.
Strategic Expansion into Myopia Treatment
A major highlight of the quarter was Alcon’s announcement of its planned acquisition of STAAR Surgical, best known for its EVO Implantable Collamer Lens (ICL) platform. The acquisition reflects Alcon’s commitment to tackling the global rise of myopia, a condition that continues to affect increasing numbers of patients worldwide.
Endicott noted that STAAR’s EVO ICL complements Alcon’s broad portfolio of surgical and vision care solutions, allowing the company to provide a full spectrum of treatment options for high myopia patients. With Alcon’s scale and global reach, the company expects to significantly expand access to these innovative lenses. Pending regulatory approval, STAAR’s integration will enhance Alcon’s positioning as the most comprehensive provider of eye care solutions.
Segment Performance
Surgical Division
Alcon’s Surgical business generated $1.5 billion in Q2 2025 sales, a 2% increase on a reported basis and 1% growth at constant currency compared to Q2 2024.
- Implantables: Sales were $456 million, down 2% both reported and constant currency. The decline reflected continued softness in global market conditions and competitive pressures.
- Consumables: Sales reached $777 million, up 6% reported and 4% constant currency, driven by strong growth in vitreoretinal and cataract consumables, particularly in international markets.
- Equipment/Other: Revenues were $222 million, flat on a reported basis and down 1% constant currency, as declines in legacy equipment offset gains from new devices such as Unity VCS and Voyager DSLT.
For the first half of 2025, Surgical sales totaled $2.8 billion, up 1% reported and constant currency compared to the prior year. Growth was led by consumables, partially offset by declines in implantables and legacy equipment.
Vision Care Division
Vision Care continued to be a growth driver for Alcon. Q2 net sales were $1.1 billion, an increase of 6% reported and 5% constant currency.
- Contact Lenses: Sales surged 9% reported and 7% constant currency, reaching $692 million. Growth was fueled by product innovation and price increases.
- Ocular Health: Revenues were $430 million, up 2%, supported by strong performance in eye drops, though partially offset by declines in contact lens care.
For the first half of 2025, Vision Care delivered $2.2 billion in sales, up 4% compared to 2024. Contact lenses rose 6%, while ocular health remained flat due to product divestitures in China late last year.
Profitability and Margins
Second-quarter operating income was $247 million, down 22% reported and 26% constant currency from the prior year. Operating margin fell by 3.2 percentage points, largely due to $44 million in charges related to the discontinuation of a Vision Care product and increased research and development (R&D) spending, particularly around recent acquisitions.
On a core basis, operating income was $491 million, in line with last year’s level. Core margins declined modestly by 0.7 percentage points due to higher R&D spending, underscoring Alcon’s strategy to invest heavily in innovation to support long-term growth.
For the first half of 2025, reported operating income was $715 million, up 4% reported and 7% constant currency. Gains included $142 million from fair value remeasurements of investments in associated companies. Core operating income for the six months was $1.0 billion, a slight decline of 3% versus the prior year.
Tax and EPS Performance
Alcon’s reported tax expense for Q2 was $23 million, down from $57 million a year ago. The reported tax rate dropped to 11.6%, while the core tax rate was 14.2%, compared to 19.0% last year. The improvement was driven by favorable discrete tax items and a beneficial geographic mix of earnings.
As a result, diluted EPS for the quarter was $0.35, down 22% from Q2 2024, reflecting lower operating income but partially offset by lower taxes. Core diluted EPS of $0.76 rose 3% year-over-year.
For the first half of 2025, diluted EPS was $1.06, up 12% year-over-year, while core diluted EPS was $1.50, nearly flat compared to last year.
Cash Flow and Capital Allocation
Alcon reported $889 million in operating cash flow during the first six months of 2025, slightly above the $871 million recorded in the prior year. Free cash flow was $681 million, compared to $667 million in the first half of 2024, reflecting improved operating performance.
In Q2, the company returned $287 million to shareholders, including $121 million in share repurchases and $166 million in dividends.
