Alcon Inc. Q1 FY2026 earnings call

• New product launches like Unity VCS, PanOptix Pro, True Plus, Valeda, contact lens reusables, and dry eye products showed strong market acceptance and share gains. • Unity platform saw momentum with VCS and CS launches, expanding installed base. • Valeda for dry AMD had encouraging early adoption with reimbursement progress. • Contact lens reusable portfolio innovations drove share gains. • Ocular health products like Tryptyr and SustainPro strengthened leadership in dry eye category. • AI being used to enhance R&D, operations, and commercial insights for better performance.

Surgical franchise revenue was up 6% year-over-year to $1.5 billion in Q1. Implantable sales were $438 million, up 1%, with PanOptix Pro growth continuing well. Consumables sales were $769 million, up 4%. Equipment sales were $253 million, up 23% driven by Unity. Vision Care sales were $1.2 billion, up 6%, with contact lens sales up 4% and ocular health sales up 10% led by dry eye portfolio. Contact lens reusable portfolio drove share gains. Ocular health over-the-counter artificial tears had high single-digit growth, and Pharmaceuticals' Tryptyr performed well with share capture.

• Expect constant currency sales growth between 5% and 7%. • Core operating margin expansion of 70-170 basis points, with majority in second half. • Core diluted EPS growth between 10% and 13%. • Board approved $1.5 billion share repurchase program over 3 years. • Dividend of $0.28 teams per share approved to be paid on or around May 7.

Q: About implantable category growth, how much surgical glaucoma and China VBP affected?

A: Glaucoma implantables had reimbursement change and supply issue, China had inventory comp effect. Core growth in US was good, PanOptix Pro doing well globally.

Q: Thoughts on market momentum for surgical side and contact lenses?

A: Surgical market had weather/strike effects but confident in 3%-4% range. Contact lenses gaining share in reusables but DAILIES legacy business mixed.

Q: Effect of Unity renewals on monofocal IOL growth?

A: Unity presence in OR helps sell more products, gaining share in monofocal globally.

Q: AT-IOL well penetration in Europe and surgical market demand translation?

A: Europe PC AT-IOL penetration up, surgical market demand translation needs practice pattern adaptation like office-based surgery.

Q: Contact lens growth drivers and geographic performance?

A: Drivers include new products and mix shift. US IOL share stabilized by PanOptix Pro, international products to follow.

Q: Operating margin guidance and segment growth post Q1?

A: 70-170 basis point improvement expected, Q2 light due to SG&A investment, growth to improve in back half with new product acceleration.

Q: Tryptyr contribution and TruePlus launch impact?

A: Tryptyr refill rates good, expanding coverage. TruePlus a good monofocal option to recapture share.

Q: Implantables growth and competitive launches?

A: Excited about PanOptix Pro in Europe, competitive launches baked into growth numbers but confident in performance.

Q: China IOL market and Orion update?

A: China IOLs ~5% of business, VBP to be watched. Orion Phase III data midyear, launch in Japan.

Q: Unity equipment growth and M&A?

A: Unity expected to continue growth, controlled launch of DX. M&A still focused on single product tuck-ins in 50-500 range.