ALC: Future Surgical Efficiency Gains Will Support Share Outperformance

Analysts have slightly reduced their price target on Alcon to reflect a modestly lower fair value estimate of approximately $79.76. This adjustment comes even as projected revenue growth has been revised marginally higher, because that improvement is offset by a slightly reduced profit margin and an almost unchanged future price-to-earnings multiple.

What's in the News

• Maintained 2025 earnings guidance, with net sales expected between $10.3 billion and $10.4 billion (company guidance)
• Recorded $2 million in impairments of property, plant and equipment and intangible assets for the quarter ended September 30, 2025 (company filing)
• Completed repurchase of 4.6 million shares, or 0.93% of shares outstanding, for a total of $384 million under the February 25, 2025 buyback program (company announcement)
• Reported clinical time and motion study results showing UNITY Vitreoretinal Cataract System delivers a 16% overall workflow efficiency gain compared with CONSTELLATION Vision System in vitreoretinal surgery (medical congress presentations)
• Additional UNITY VCS study in cataract surgery indicated a 6% reduction in turnover time and lower total energy into the eye and ultrasound time compared with CENTURION Vision System (medical congress presentations)

Valuation Changes

• The fair value estimate decreased slightly from CHF 80.15 to CHF 79.76, reflecting a modest downward revision in intrinsic value.
• The discount rate edged down marginally from 4.84% to 4.82%, implying a slightly lower required return on equity.
• Revenue growth rose slightly from 6.51% to 6.60%, indicating a small upgrade to long-term top-line expectations.
• The net profit margin dipped slightly from 12.01% to 11.96%, signaling a modestly less favorable profitability outlook.
• The future P/E eased fractionally from 37.34x to 37.29x, leaving the valuation multiple largely unchanged.