Earnings quality appears masked by accruals, as evidenced by an OCF/NI ratio frequently exceeding 2.0x, while capital expenditures remain elevated at 7.1% of revenue in 2026Q1.
| Cash from Operations | 2.27B | 2.27B | 2.08B | 1.39B | 1.22B | 1.34B | 823M | 920M | 1.14B | 1.22B | 1.25B | 1.32B |
| Operating CF Margin % | - | 21.83% | 20.96% | 14.68% | 13.96% | 16.22% | 12.04% | 12.25% | 15.94% | 17.93% | 18.88% | 20.22% |
| Operating CF Growth % | 40.58% | 9.34% | 49.64% | 14.05% | -9.52% | 63.43% | -10.54% | -19.3% | -6.4% | -2.17% | -5.53% | - |
| Net Income | 815.33M | 980M | 1.02B | 974M | 335M | 376M | -531M | -656M | -227M | 256M | -170M | 296.27M |
| Depreciation & Amortization | 1.02B | 1.19B | 1.23B | 1.22B | 1.12B | 1.22B | 1.62B | 1.43B | 1.62B | 1.3B | 1.29B | 1.26B |
| Stock-Based Compensation | -80M | 0 | 150M | 144M | 140M | 138M | 105M | 83M | 93M | 71M | 0 | 65M |
| Deferred Taxes | 0 | 0 | 238M | -142M | 128M | 42M | -104M | 324M | -73M | -383M | 57M | 0 |
| Other Non-Cash Items | 770.94M | 400M | -368M | -377.78M | 13M | -116M | -225M | -208M | -355M | 53M | 79M | -179.44M |
| Working Capital Changes | -253.79M | -300M | -189M | -431.22M | -522M | -314M | -45M | -48M | 80M | -84M | -10M | -122M |
| Change in Receivables | 5.78M | 0 | -55M | -117.41M | -164M | -198M | 43M | -115M | 53M | -54M | -150M | 37M |
| Change in Inventory | -2.4M | 0 | -47M | -289.26M | -217M | -326M | -159M | -108M | -150M | -87M | -64M | -54M |
| Change in Payables | 3.93M | 0 | -15M | -54.44M | -48M | 60M | -21M | 84M | 44M | 0 | 0 | 0 |
| Cash from Investing | -971.35M | -1.34B | -1.17B | -1.09B | -1.86B | -1.2B | -572M | -1.01B | -1B | -679M | -843M | -517.51M |
| Capital Expenditures | -639.38M | -543M | -473M | -660M | -745M | -1.18B | -567M | -676M | -712M | -496M | -523.43M | -485.77M |
| CapEx % of Revenue | 6.04% | 5.22% | 4.77% | 6.98% | 8.55% | 14.23% | 8.3% | 9% | 9.95% | 7.3% | 7.94% | 7.45% |
| Acquisitions | -114.96M | -692M | -220M | -10M | -666M | 480M | 6.37M | -283M | -239M | -70M | -303M | -35.59M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -181.69M | -109M | -205M | -177.3M | -485M | -480M | -82M | -1M | 0 | 1M | -14.57M | 3.85M |
| Cash from Financing | -1.13B | -1.12B | -322M | -211M | -8M | -123M | 466M | 659M | -78M | -539M | -435M | -796.47M |
| Debt Issued (Net) | -50.68M | -96M | -137M | -7M | 208M | -63M | 536M | 3.36B | -5.96M | -112.11M | -35.86M | 43.29M |
| Equity Issued (Net) | -758.01M | -723M | 0 | -49M | -50M | -22M | -16M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -160.65M | -166M | -130M | -116M | -103.28M | -54.11M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -758.01M | -723M | 0 | -49M | -50M | -22M | -16M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -156.4M | -134M | -55M | -39M | -62.72M | 16.11M | -54M | -2.7B | -72.04M | -426.89M | -399.14M | -839.75M |
| Net Change in Cash | 169.4M | -149M | 582M | 114M | -595M | 18M | 735M | 595M | 55M | 10M | -123M | -31.15M |
| Free Cash Flow | 1.7B | 1.73B | 1.41B | 537M | 472M | 165M | 256M | 244M | 428M | 722M | 739M | 832.06M |
| FCF Margin % | 16.11% | 16.61% | 14.2% | 5.68% | 5.41% | 1.99% | 3.75% | 3.25% | 5.98% | 10.63% | 11.2% | 12.77% |
| FCF Growth % | 5.57% | 22.81% | 162.01% | 13.77% | 186.06% | -35.55% | 4.92% | -42.99% | -40.72% | -2.3% | -11.18% | - |
| FCF per Share | 3.48 | 3.48 | 2.83 | 1.08 | 0.95 | 0.33 | 0.52 | 0.50 | 0.88 | 1.48 | 1.51 | 1.70 |
| FCF Conversion (FCF/Net Income) | 2.09x | 2.32x | 2.04x | 1.43x | 3.63x | 3.58x | -1.55x | -1.40x | -5.02x | 4.76x | -7.32x | 4.45x |
| Interest Paid | 63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
Based on reported quarterly filings, Alcon consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio frequently exceeding 2.0x, suggesting that non-cash charges and accrual accounting play a dominant role in the firm's reported profitability metrics over the last ten quarters.
The persistent gap between net income and operating cash flow appears largely driven by substantial depreciation and amortization charges, which are characteristic of a capital-intensive medical device manufacturer. Investors should monitor whether this cash-generative capacity remains sustainable if the company's reliance on high-margin consumable pull-through faces competitive pricing pressure.
As reported in financial statements, Alcon's free cash flow margins have demonstrated significant volatility, ranging from a low of 4.7% in 2023Q4 to a peak of 25.0% in 2024Q3, reflecting the lumpy nature of equipment sales and periodic spikes in capital expenditure requirements.
This inconsistency in FCF generation suggests that the company's cash flow profile is sensitive to the timing of large-scale surgical console deployments and associated infrastructure investments. The lack of a smooth upward trajectory in FCF margins warrants further investigation into the predictability of the firm's long-term cash conversion cycle.
According to recent SEC filings, Alcon's capital expenditure as a percentage of revenue has fluctuated between 3.7% and 15.7% over the past ten quarters, indicating that the firm must continuously reinvest heavily to maintain its competitive edge in precision optics and surgical platform innovation.
The high capital intensity suggests that Alcon's moat is expensive to defend, requiring constant investment in manufacturing throughput and R&D-linked assets. Analysts should consider whether these elevated spending levels are purely for maintenance or if they represent a necessary, ongoing cost to prevent technological obsolescence in the surgical segment.
Based on the provided cash flow data, working capital changes have been highly erratic, with outflows reaching as high as $322 million in 2025Q1, which suggests that inventory management and the timing of receivables collection remain significant variables in the company's short-term cash flow health.
The frequent shifts between positive and negative working capital impacts imply that the company may be struggling to optimize its supply chain or is experiencing seasonal fluctuations in demand for its surgical consumables. This volatility may indicate potential inefficiencies in managing the cash conversion cycle that could constrain liquidity during periods of slower revenue growth.
As reported in recent financial statements, Alcon has prioritized share repurchases and strategic acquisitions, such as the $568 million outlay in 2025Q1, over consistent dividend payments, signaling a management focus on inorganic growth and equity value support rather than direct cash returns to shareholders.
The reliance on acquisitions to drive growth, coupled with significant share buybacks, suggests a strategy aimed at offsetting organic growth limitations in the mature eye care market. Investors should monitor whether these capital deployment choices provide sufficient return on invested capital to justify the associated cash outflows and potential integration risks.
Quick answers to the most common questions about buying ALC stock.
Alcon Inc. (ALC) generated $2.27B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alcon Inc. (ALC) generated $1.73B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alcon Inc. (ALC) spent $543.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alcon Inc. (ALC) returned $166.0M to shareholders via cash dividends and spent $723.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.