Revenue growth remained stable at 8.7% in 2026Q2 with gross margin expanding to 59.3%, but operating margin collapsed to 0.4% from 15.5% in the prior quarter due to a surge in R&D spending to $663M.
Alcon Inc. (ALC) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 10.81B | 10.4B | 9.91B | 9.46B | 8.72B | 8.29B | 6.83B | 7.51B | 7.15B | 6.79B | 6.6B | 6.52B |
| Revenue Growth % | 7.81% | 4.94% | 4.82% | 8.47% | 5.14% | 21.34% | -8.99% | 4.96% | 5.32% | 2.97% | 1.2% | - |
| Cost of Goods Sold | 4.71B | 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 | 6.1B | 5.75B | 5.51B | 5.25B | 4.75B | 4.65B | 2.94B | 3.66B | 3.19B | 3.2B | 3.11B | 3.12B |
| Gross Margin % | 56.45% | 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 | 5.03B | 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 | 3.57B | 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 | 1.43B | 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 | 1.07B | 1.36B | 1.41B | 1.04B | 672M | 580M | -482M | -187M | -248M | -77M | 10M | 401.12M |
| Operating Margin % | 9.87% | 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 | 2.2B | 2.55B | 2.64B | 2.26B | 1.83B | 1.8B | 1.24B | 1.28B | 1.38B | 1.24B | 1.26B | 1.61B |
| EBITDA Margin % | 20.32% | 24.53% | 26.65% | 23.9% | 21.01% | 21.73% | 18.17% | 16.99% | 19.27% | 18.27% | 19.09% | 24.75% |
| EBITDA Growth % | -18.09% | -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) | 1.13B | 1.19B | 1.23B | 1.22B | 1.16B | 1.22B | 1.72B | 1.46B | 1.63B | 1.32B | 1.25B | 1.21B |
| EBIT | 891.33M | 1.16B | 1.45B | 1.02B | 616.59M | 539.14M | -542.6M | -206.28M | -274M | -101M | -82M | 354.95M |
| Net Interest Income | -207.99M | -130M | -104.73M | -155M | -121.87M | -117.25M | -125.3M | -126.23M | -21.84M | -27M | -29.08M | -16.35M |
| Interest Income | 0 | 74M | 81.45M | 34M | 16.52M | 3.01M | 6.37M | 8.21M | 1.99M | 0 | 969.32K | 961.92K |
| Interest Expense | 207.99M | 204M | 186.18M | 189M | 138.4M | 120.26M | 131.67M | 134.44M | 23.83M | 27M | 30.05M | 17.31M |
| Other Income/Expense | -330.52M | -200M | -157M | -207M | -209M | -162M | -153M | -145M | -52M | -50M | -123M | -63.49M |
| Pretax Income | 736.34M | 1.16B | 1.26B | 832M | 463M | 418M | -635M | -332M | -300M | -127M | -113M | 337.63M |
| Pretax Margin % | 6.81% | 11.15% | 12.67% | 8.8% | 5.31% | 5.04% | -9.29% | -4.42% | -4.19% | -1.87% | -1.71% | 5.18% |
| Income Tax | 97.01M | 180M | 238M | -142M | 128M | 42M | -104M | 324M | -73M | -383M | 57M | 41.36M |
| Effective Tax Rate % | 13.17% | 15.52% | 18.95% | -17.07% | 27.65% | 10.05% | 16.38% | -97.59% | 24.33% | 301.57% | -50.44% | 12.25% |
| Net Income | 639.33M | 980M | 1.02B | 974M | 335M | 376M | -531M | -656M | -227M | 256M | -170M | 296.27M |
| Net Margin % | 5.92% | 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 % | -40.42% | -3.73% | 4.52% | 190.75% | -10.9% | 170.81% | 19.05% | -188.99% | -188.67% | 250.59% | -157.38% | - |
| Net Income (Continuing) | 639.33M | 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 | 1M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.31 | 1.98 | 2.05 | 1.96 | 0.68 | 0.76 | -1.09 | -1.34 | -0.46 | 0.52 | -0.35 | 0.61 |
| EPS Growth % | -39.53% | -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 | 488.7M | 496.2M | 497.5M | 496.5M | 494.4M | 493.4M | 489M | 488.2M | 488.7M | 488.7M | 488.7M | 488.7M |
| Basic Shares Outstanding | 486.7M | 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% | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Surgical margin volatility and guidance gap
Steady Growth Amidst Mixed Drivers
Revenue growth has remained in the 4-9% range over the past year, with the latest quarter showing 8.7% growth, according to reported quarterly data, suggesting a stable but not accelerating trajectory.
The 8.7% year-over-year growth in 2026Q2 is the strongest in the trailing four quarters, but it follows a period of deceleration from 6.4% in 2024Q4 to 4.0% in 2025Q2. This suggests growth is being driven by a mix of volume gains in Vision Care and continued adoption of premium IOLs, though the lumpiness of surgical equipment sales may be adding volatility. Investors should monitor whether the recent uptick is sustainable or a one-off from equipment orders.
Gross Margin Resilience with Operating Pressure
Gross margin expanded to 59.3% in 2026Q2, the highest in the series, but operating margin collapsed to 0.4%, per the latest income statement, highlighting a stark divergence between product profitability and operational efficiency.
The gross margin improvement from 55.0% in 2024Q2 to 59.3% in 2026Q2 indicates strong pricing power in premium lenses and consumables, likely benefiting from a favorable product mix shift toward ATIOLs and SiHy dailies. However, the operating margin drop to 0.4% in the same quarter is alarming, driven by a spike in R&D to $663M, nearly triple the typical quarterly spend. This suggests a deliberate investment push, possibly in pipeline development, but it compresses near-term profitability and warrants scrutiny on whether such spending will yield future revenue growth.
Operating Leverage Reverses Sharply
Operating income swung from $410.9M in 2026Q1 to just $11.0M in 2026Q2, a 97% sequential collapse, as reported in the latest quarterly data, indicating a severe loss of operating leverage.
The sequential decline in operating income is not explained by revenue, which grew slightly, but by a surge in R&D and SG&A costs. SG&A rose to $964M, up 14% from the prior quarter, while R&D more than doubled, suggesting a strategic decision to accelerate spending. This implies that the company is prioritizing long-term growth over short-term margins, but it also exposes the fragility of its operating model when cost lines are not tightly controlled. Investors should assess whether this is a one-time investment cycle or a structural shift in cost discipline.
Net Income Volatility Masks Core Strength
Net income swung from $350M in 2025Q1 to zero in 2026Q2, with EPS dropping from $0.70 to $0.00, based on reported figures, reflecting significant non-operating and one-time impacts.
The zero net income in 2026Q2 is a red flag, but it appears driven by the same R&D spike and possibly tax or other charges, as gross profit remained healthy. The negative SBC of -$118M in 2025Q4 is unusual and may indicate a reversal or adjustment, which complicates earnings quality. The wide gap between operating income and net income in some quarters suggests tax rate volatility or non-operating items that investors should dissect. Overall, the core business appears profitable, but reported earnings are not a clean reflection of operational performance.
R&D Surge and SG&A Creep
R&D spending jumped to $663M in 2026Q2, up from an average of $240M in prior quarters, while SG&A rose to $964M, per the income statement, signaling a deliberate cost escalation.
The R&D increase is the most striking cost trend, representing a 176% sequential increase, which could be tied to clinical trials or regulatory submissions for new products. SG&A has also trended upward from $802M in 2024Q1 to $964M in 2026Q2, reflecting investments in commercial infrastructure or inflation in sales force costs. While these investments may support future growth, they are compressing margins now, and management's expense discipline will be tested if revenue growth does not accelerate to offset the higher cost base.
2026Q2: A Strategic Spending Inflection
The 2026Q2 quarter marks a clear inflection point, with operating margin collapsing to 0.4% from 15.5% in the prior quarter, as reported, driven by a massive R&D investment.
This quarter appears to be a deliberate pivot toward heavier investment, likely in the Aerie-derived pharmaceutical pipeline and next-generation surgical platforms. The lasting impact will depend on whether this spending translates into new product launches that drive revenue growth and margin recovery. If successful, this could be seen as a necessary step to defend the moat; if not, it may signal a period of prolonged margin pressure. Investors should monitor subsequent quarters for evidence of revenue acceleration or a return to prior margin levels.
What Could Invalidate the Base Case
The 2026Q2 operating margin collapse to 0.4% and the skipped guidance, per the latest report, raise concerns that the spending surge may not yield offsetting growth, challenging the investment thesis.
Short-sellers could argue that the R&D spike to $663M and SG&A creep to $964M in 2026Q2 are not one-time but signal a structurally higher cost base, especially if the skipped guidance reflects management's own uncertainty about near-term revenue. The reliance on premium IOL adoption and surgical consumables may face pricing pressure from competitors like Bausch + Lomb, and the negative SBC in 2025Q4 hints at potential accounting adjustments that could distort earnings quality. If revenue growth fails to re-accelerate above 8% while costs remain elevated, margins could stay compressed, undermining the premium valuation.