# Alcon AG (ALC.US)

Canonical: https://gigainvestors.com/s/ALC

Analysis as of: 2026-10-16T07:26:21.543Z. Financial observations: FY2015–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $66.58 per share; close as of 2026-10-15.

Estimated value: low $36.63 per share, central $41.34 per share, high $47.60 per share. Buy at or below the central value $41.34 per share. Valuation as of 2026-10-16T07:26:21.543Z; scenarios are not confidence intervals.

Expected annual return: 7.2% at the stated quote. About 7.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 1.50×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.01×

- FY2018: -0.03×

- FY2019: -0.02×

- FY2020: -0.07×

- FY2021: 0.07×

- FY2022: 0.08×

- FY2023: 0.11×

- FY2024: 0.14×

- FY2025: 0.13×

- LTM to Jun 2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.7%

- ROIC, second-lowest year: -1.4%

- Typical minus recent gross margin: -3.6 pp

- Typical gross margin (annual median): 51.6%

- Recent gross margin (lower of latest and 3-year median): 55.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.4%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.1%

- FY2017: -0.4%

- FY2018: -1.4%

- FY2019: -1.1%

- FY2020: -3.0%

- FY2021: 3.9%

- FY2022: 3.3%

- FY2023: 6.6%

- FY2024: 7.2%

- FY2025: 7.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.55×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.7B

- Net income, five-year total: $3.7B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 34.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.11×

- FY2022: 2.13×

- FY2023: 1.38×

- FY2024: 1.55×

- FY2025: 1.69×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -0.4% vs 7.0%

- Per-share earnings: 0.52 to 1.99 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.0%

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.0%

- Per-share value growth: 18.2%

- Per-share value change: $1.47

- Per-share value, starting three-year median: $0.52

- Per-share value, ending three-year median: $1.99

- Buybacks concentrated in cheaper years (correlation): 0.71

- Average buyback yield: 0.4%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.7B

- Cumulative net income, 10 years: $2.4B

- ROIC, first three-year median: -0.4%

- ROIC, last three-year median: 7.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.35

- FY2017: $0.52

- FY2018: -$0.46

- FY2019: -$1.34

- FY2020: -$1.08

- FY2021: $0.76

- FY2022: $0.68

- FY2023: $1.97

- FY2024: $2.05

- FY2025: $1.99

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.32×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.83×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.1%

- FY2017: -3.5%

- FY2018: -5.1%

- FY2019: -5.7%

- FY2020: -4.9%

- FY2021: -3.5%

- FY2022: -3.0%

- FY2023: -1.4%

- FY2024: -3.5%

- FY2025: -4.1%

## Holders

- [Nicolai Tangen](https://gigainvestors.com/AKO): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 33% since Sep 2024 · "However, challenging tariff conditions and intense competition may adversely impact its operations." (finance.yahoo.com, Sep 2026) · sales +3.9%

Story as of 2026-10-16T09:58:16.150Z; price observation 2026-10-15.

Price needs cash profits to grow 7.2% a year for ten years

- 2025-05-14: Alcon Q1 Earnings Miss Estimates, Stock Down, 2025 EPS View Lowered ([finance.yahoo.com](https://finance.yahoo.com/news/alcon-q1-earnings-miss-estimates-124900571.html))

- 2025-08-20: Alcon slips 9% on top-line miss, updated 2025 guidance ([seekingalpha.com](https://seekingalpha.com/news/4487537-alcon-slips-9-top-line-miss-updated-2025-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-12: Alcon sales climb 6% in Q3, reiterates outlook; shares rise ([finance.yahoo.com](https://finance.yahoo.com/news/alcon-sales-climb-6-q3-100023025.html))

- 2026-02-24: Alcon Delivers Strong Fourth-Quarter 2025 Topline Growth as New Product Launches Accelerate Sales ([finance.yahoo.com](https://finance.yahoo.com/news/alcon-delivers-strong-fourth-quarter-213000994.html))

- 2026-05-06: Alcon slides after revenue misses forecasts, operating profit falls sharply ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/alcon-slides-revenue-misses-forecasts-093207938.html))

- 2026-08-11: Alcon rises on profit guidance hike, lowered tariff impact estimate ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/alcon-raises-profit-guidance-cuts-073049334.html))

### Sales · FY2025–2026

sales +3.9%; source https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm; observed 2026-02-24.

- FY2017: $6.8B 

- FY2018: $7.2B 

- FY2019: $7.5B 

- FY2020: $6.8B 

- FY2021: $8.3B 

- FY2022: $8.7B 

- FY2023: $9.5B 

- FY2024: $9.9B 

- FY2025: $10B 

- FY2026: $11B 

### Gross margin · FY2025

gross margin 55.2%; source https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm; observed 2026-02-24.

- FY2016: 47.2% 

- FY2017: 47.2% 

- FY2018: 44.6% 

- FY2019: 48.8% 

- FY2020: 43.0% 

- FY2021: 56.1% 

- FY2022: 54.5% 

- FY2023: 55.5% 

- FY2024: 55.6% 

- FY2025: 55.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 10.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); FY2025: revenue 10401000000; grossProfit 5745000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALC.US: Alcon Inc. researches, develops, manufactures, distributes, and sells eye care products worldwide. The company operates through two segments, Surgical and Vision Care. It offers equipment, instrumentation and diagnostics, intraocular lenses (IOLs), and other implantables; and consumables, including viscoelastics, surgical solutions, incisional instruments, surgical custom packs, and other products for surgical procedures. The company's cataract products include Unity CS, LenSx laser system, Verion reference unit and Verion digital marker, ARGOS biometer, SMARTCATARACT health platform, NGENUITY 3D visualization system, LuxOR surgical ophthalmic microscope, and ORA system for intra-operative measurements; ADI cloud-based platform; and implantable products, including monofocal, Toric, and Presbyopia-Correcting IOLs, as well as delivery systems, such as AutonoMe and UltraSert. In addition, it provides Custom Pak surgical procedure packs vitreoretinal products comprising constellation vision systems, procedure packs, lasers and hand-held microsurgical instruments, Grieshaber, MIVS instruments; scissors, forceps and micro-instruments, medical grade vitreous tamponades, and Hypervit probes; and refractive surgery products, including WaveLight and Contoura Vision used for LASIK refractive procedure. Further, the company offers daily disposable, reusable, and color-enhancing contact lenses; ocular health products, such as dry eye, ocular allergies, glaucoma, and contact lens care, as well as ocular vitamins and redness relievers. The company was formerly known as Alcon Universal S.A. and changed its name to Alcon Inc. in December 2001. Alcon Inc. was founded in 1945 and is headquartered in Geneva, Switzerland.

### Why customers stay

Margins ranged from 55.2% to 55.6% during 2023–25; it earns 1.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 55.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 55.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 55.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.0005561030550471632],[2017,-0.004310821345049961],[2018,-0.014386840945807021],[2019,-0.011068404884992881],[2020,-0.02964652756150732],[2021,0.03936933957427388],[2022,0.03286382577734437],[2023,0.06604373251970506],[2024,0.0719694589329479],[2025,0.06998632620097334]]; median 0.016709964416195766. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 54% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.5610903389217223],[2022,0.544682803716875],[2023,0.5549444738233739]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 723 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 506000000; owner earnings 573451304. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 496000000; owner earnings 1078072848. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 712000000; owner earnings 687140207. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 676000000; owner earnings 130426211. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 567000000; owner earnings 625367112. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 1180000000; owner earnings 417593314. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 745000000; owner earnings 713000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 851000000; owner earnings 1344000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 670000000; owner earnings 1576000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 663000000; owner earnings 1652000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,54000000],[2019,54000000],[2020,54000000],[2021,54000000],[2022,100000000],[2023,116000000],[2024,130000000],[2025,166000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 723000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALC.US SharesStats.PercentInsiders = 0.196 percentage points; cache date 2026-10-16.

### What could break it

Exhibit 2 provides an overview of the key roles and responsibilities of these independent bodies.

- Source: https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm (filed 2026-02-24); The process is overseen by independent bodies and informed by ongoing shareholder engagement. Exhibit 2 provides an overview of the key roles and responsibilities of these independent bodies. 78 Exhibit 2 Authority levels in ECA compensation CEO CC3 Board AGM ECA compensation policy and principles CEO compensation and benefits Other ECA member compensation and benefits CEO performance objectives and assessment of achievements Other ECA members’ performance objectives and assessment of achievements Share ownership requirements for the CEO and other members of the ECA Maximum aggregate ECA compensation Incentive plan design and rules Compensation Report of the Company – Recommend – Propose – Approve 1binding vote 2advisory vote 3the Compensation Committee Adherence to Strong Governance Practices The Committee evaluates many governance factors when designing and establishing compensation for members of the ECA.

### What the price says

The price assumes cash profits grow 7.2% yearly over ten years; actual growth was 4.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.09006117710096728. Price 66.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.09232386535707 → FY2025 3.355677432459882. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-04: $58.20 per share

- 2019-05: $58.18 per share

- 2019-06: $62.05 per share

- 2019-07: $58.75 per share

- 2019-08: $60.96 per share

- 2019-09: $58.29 per share

- 2019-10: $59.27 per share

- 2019-11: $55.29 per share

- 2019-12: $56.57 per share

- 2020-01: $58.94 per share

- 2020-02: $61.30 per share

- 2020-03: $50.82 per share

- 2020-04: $52.81 per share

- 2020-05: $63.54 per share

- 2020-06: $57.32 per share

- 2020-07: $59.98 per share

- 2020-08: $57.34 per share

- 2020-09: $56.95 per share

- 2020-10: $56.84 per share

- 2020-11: $64.22 per share

- 2020-12: $65.98 per share

- 2021-01: $71.71 per share

- 2021-02: $68.40 per share

- 2021-03: $70.18 per share

- 2021-04: $75.43 per share

- 2021-05: $69.68 per share

- 2021-06: $70.26 per share

- 2021-07: $72.80 per share

- 2021-08: $82.47 per share

- 2021-09: $80.47 per share

- 2021-10: $83.36 per share

- 2021-11: $78.40 per share

- 2021-12: $87.12 per share

- 2022-01: $76.78 per share

- 2022-02: $76.99 per share

- 2022-03: $79.33 per share

- 2022-04: $71.21 per share

- 2022-05: $74.73 per share

- 2022-06: $69.89 per share

- 2022-07: $78.09 per share

- 2022-08: $65.68 per share

- 2022-09: $58.18 per share

- 2022-10: $60.68 per share

- 2022-11: $68.89 per share

- 2022-12: $68.55 per share

- 2023-01: $75.21 per share

- 2023-02: $68.24 per share

- 2023-03: $70.54 per share

- 2023-04: $72.48 per share

- 2023-05: $77.39 per share

- 2023-06: $82.11 per share

- 2023-07: $84.92 per share

- 2023-08: $82.99 per share

- 2023-09: $77.06 per share

- 2023-10: $71.32 per share

- 2023-11: $75.63 per share

- 2023-12: $78.12 per share

- 2024-01: $75.11 per share

- 2024-02: $84.55 per share

- 2024-03: $83.29 per share

- 2024-04: $77.58 per share

- 2024-05: $89.13 per share

- 2024-06: $89.08 per share

- 2024-07: $94.00 per share

- 2024-08: $97.68 per share

- 2024-09: $100.07 per share

- 2024-10: $91.95 per share

- 2024-11: $88.85 per share

- 2024-12: $84.89 per share

- 2025-01: $91.09 per share

- 2025-02: $92.50 per share

- 2025-03: $94.93 per share

- 2025-04: $97.61 per share

- 2025-05: $85.94 per share

- 2025-06: $88.28 per share

- 2025-07: $87.55 per share

- 2025-08: $79.81 per share

- 2025-09: $74.51 per share

- 2025-10: $73.89 per share

- 2025-11: $79.31 per share

- 2025-12: $78.81 per share

- 2026-01: $80.98 per share

- 2026-02: $87.18 per share

- 2026-03: $75.35 per share

- 2026-04: $74.87 per share

- 2026-05: $66.29 per share

- 2026-06: $67.10 per share

- 2026-07: $68.94 per share

- 2026-08: $72.06 per share

- 2026-09: $64.75 per share

- 2026-10: $66.58 per share

## Annual estimated value (USD per share)

- FY2019: low $17.59 per share, central $19.82 per share, high $22.78 per share

- FY2020: low $16.79 per share, central $18.70 per share, high $21.25 per share

- FY2021: low $19.64 per share, central $21.95 per share, high $25.03 per share

- FY2022: low $17.48 per share, central $19.67 per share, high $22.58 per share

- FY2023: low $18.99 per share, central $21.35 per share, high $24.50 per share

- FY2024: low $23.21 per share, central $25.96 per share, high $29.61 per share

- FY2025: low $35.67 per share, central $40.19 per share, high $46.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:31:57.534Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1167379/000116737926000014/alc-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Nicolai Tangen](https://gigainvestors.com/AKO): 9,683,004 ALC shares; USD 651,941,000 reported position value; 15.19% of portfolio; add; quarter 2026 Q2.
- [Lee Ainslie](https://gigainvestors.com/mc): 33,036 ALC shares; USD 2,217,000 reported position value; 0.02% of portfolio; add; quarter 2026 Q2.

# ALC — Alcon Inc.

Held by 2 investors · USD 654,158,000 total · 2026 Q2 · reported price USD 67.33 (split-adjusted).
Page: https://gigainvestors.com/s/ALC

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Nicolai Tangen (https://gigainvestors.com/AKO) | USD 651,941,000 | 15% | add +3.84% |
| William Von Mueffling (https://gigainvestors.com/cc) | USD 188,909,608 | 0.0% | sold |
| Lee Ainslie (https://gigainvestors.com/mc) | USD 2,217,000 | <0.1% | add +159.47% |

## Total held by quarter

- 2019 Q2: USD 178,848,620 · 3 holders · USD 61.93
- 2019 Q3: USD 161,412,397 · 3 holders · USD 58.32
- 2019 Q4: USD 185,599,481 · 3 holders · USD 56.57
- 2020 Q1: USD 161,941,286 · 3 holders · USD 51.06
- 2020 Q2: USD 201,422,444 · 2 holders · USD 57.39
- 2020 Q3: USD 200,137,579 · 2 holders · USD 56.95
- 2020 Q4: USD 313,309,557 · 3 holders · USD 66.37
- 2021 Q1: USD 459,161,324 · 2 holders · USD 70.24
- 2021 Q2: USD 423,343,385 · 2 holders · USD 70.25
- 2021 Q3: USD 448,901,587 · 1 holder · USD 80.95
- 2021 Q4: USD 467,350,193 · 1 holder · USD 87.83
- 2022 Q1: USD 426,312,190 · 2 holders · USD 80.00
- 2022 Q2: USD 327,892,289 · 2 holders · USD 69.86
- 2022 Q3: USD 337,063,531 · 1 holder · USD 58.61
- 2022 Q4: USD 385,618,521 · 1 holder · USD 68.47
- 2023 Q1: USD 466,716,129 · 1 holder · USD 70.67
- 2023 Q2: USD 537,567,790 · 1 holder · USD 82.46
- 2023 Q3: USD 504,554,587 · 1 holder · USD 77.33
- 2023 Q4: USD 515,296,669 · 1 holder · USD 78.11
- 2024 Q1: USD 539,635,762 · 1 holder · USD 83.07
- 2024 Q2: USD 568,065,375 · 1 holder · USD 89.16
- 2024 Q3: USD 615,658,344 · 1 holder · USD 99.98
- 2024 Q4: USD 498,602,358 · 1 holder · USD 84.85
- 2025 Q1: USD 811,591,889 · 2 holders · USD 94.93
- 2025 Q2: USD 933,384,105 · 2 holders · USD 88.35
- 2025 Q3: USD 804,136,865 · 2 holders · USD 74.51
- 2025 Q4: USD 833,548,695 · 2 holders · USD 79.27
- 2026 Q1: USD 885,487,920 · 3 holders · USD 75.32
- 2026 Q2: USD 654,158,000 · 2 holders · USD 67.33