• Second-quarter 2025 sales of $2.6 billion, up 4% on a reported basis, or up 3% constant currency¹ (cc), versus second-quarter 2024
• Second-quarter 2025 diluted EPS of $0.35; core diluted EPS² of $0.76
• Generated $889 million cash from operations and $681 million free cash flow³ in the first half of 2025. Also returned $287 million to shareholders
• Recently launched Tryptyr, a first-in-class treatment for dry eye disease, in the US
• Announced agreement to acquire STAAR Surgical, expanding Alcon's presence in myopia correction

Ad Hoc Announcement Pursuant to Art. 53 LR

Alcon (SIX/NYSE: ALC), the global leader in eye care, reported its financial results for the three and six month periods ending June 30, 2025. For the second quarter of 2025, sales were $2.6 billion, up 4% on a reported basis and up 3% on a constant currency basis¹, as compared to the same quarter of the previous year. Alcon reported diluted earnings per share of $0.35 and core diluted earnings per share² of $0.76 in the second quarter of 2025.

"Alcon is exiting the second quarter with solid momentum, despite a relatively soft surgical market in the first half of the year," said David J. Endicott, Alcon's Chief Executive Officer. "Robust early demand for our recent product launches, including Unity VCS, Voyager, PanOptix Pro, Precision7, Systane Pro PF and Tryptyr, has been encouraging. While it's still early, these launches position us to accelerate top-line growth, generate cash and deliver long-term value for our shareholders."

Mr. Endicott continued, "As the global myopia epidemic grows, our announced acquisition of STAAR and its market leading Implantable Collamer Lens, EVO, positions Alcon to offer a full spectrum of treatments for this disorder. With Alcon’s global commercial reach and expertise, we expect to expand access and options for patients, particularly to high myopes. Following the regulatory review period, we look forward to welcoming the STAAR team into the Alcon family."

Second-quarter and first-half 2025 results

Reported net sales for the second quarter of 2025 were $2.6 billion, up 4% versus the second quarter of 2024. Excluding favorable currency impacts of 1%, sales were up 3% on a constant currency basis. Reported net sales for the first half of 2025 were $5.0 billion, up 2% versus the first half of 2024. Excluding unfavorable currency impacts of 1%, sales were up 3% on a constant currency basis.

The following table highlights net sales by segment for the second quarter and first half of 2025:

Net sales by segment

Second quarter

Surgical

Surgical net sales, which include implantables, consumables and equipment/other, were $1.5 billion, an increase of 2% on a reported basis and 1% on a constant currency basis versus the second quarter of 2024.

• Implantables net sales were $456 million, a decrease of 2% on a reported and constant currency basis, reflecting soft market conditions and competitive pressures.

• Consumables net sales were $777 million, an increase of 6%. Excluding favorable currency impacts of 2%, Consumables net sales increased 4% constant currency. Growth was led by vitreoretinal and cataract consumables, particularly in international markets, and price increases, and reflects soft market conditions.

• Equipment/other net sales of $222 million were in line with the prior year period on a reported basis. Excluding favorable currency impacts of 1%, Equipment/other net sales decreased 1% constant currency, as declines in legacy equipment were partially offset by sales of the recently launched Unity VCS and Voyager DSLT devices.

Vision Care

Vision Care net sales, which include contact lenses and ocular health, were $1.1 billion, an increase of 6% on a reported basis and 5% on a constant currency basis versus the second quarter of 2024.

• Contact lenses net sales were $692 million, an increase of 9%. Excluding favorable currency impacts of 2%, Contact lenses net sales increased 7% constant currency, primarily driven by product innovation and price increases.

• Ocular health net sales were $430 million, an increase of 2% on a reported and constant currency basis. Growth was led by the portfolio of eye drops, partially offset by declines in contact lens care. The prior year period included sales of certain eye drops in China which were divested and out-licensed in late 2024.

First half

Surgical

Surgical net sales were $2.8 billion, an increase of 1% on a reported and constant currency basis versus the first half of 2024.

• Implantables net sales were $876 million, a decrease of 2%. Excluding unfavorable currency impacts of 1%, Implantables net sales decreased 1% constant currency, reflecting soft market conditions and competitive pressures, partially offset by growth in advanced technology intraocular lenses in international markets during the first quarter.

• Consumables net sales were $1.5 billion, an increase of 5% on a reported and constant currency basis. Growth was led by vitreoretinal and cataract consumables, particularly in international markets, and price increases, and reflects soft market conditions.

• Equipment/other net sales were $421 million, a decrease of 5%. Excluding unfavorable currency impacts of 1%, Equipment/other net sales decreased 4% constant currency, as declines in legacy equipment were partially offset by sales of the recently launched Unity VCS and Voyager DSLT devices.

Vision Care

Vision Care net sales were $2.2 billion, an increase of 4% on a reported and constant currency basis versus the first half of 2024.

• Contact lenses net sales were $1.4 billion, an increase of 6%. Excluding favorable currency impacts of 1%, Contact lenses net sales increased 5% constant currency, primarily driven by product innovation and price increases.

• Ocular health net sales were $862 million, in line with the prior year period on a reported basis. Excluding unfavorable currency impacts of 2%, Ocular health net sales increased 2% constant currency. Growth was led by the portfolio of eye drops, including the Systane family of artificial tears, partially offset by declines in contact lens care. The prior year period included sales of certain eye drops in China which were divested and out-licensed in late 2024.

Operating income

Second quarter

Operating income was $247 million (-22%, -26% cc), compared to $318 million in the prior year period. Operating margin decreased 3.2 percentage points as the current year period included $44 million in charges related to the discontinued commercialization of a Vision Care product and increased investment in research and development ("R&D"), including for recent acquisitions. Excluding a positive 0.3 percentage point impact from currency, operating margin decreased 3.5 percentage points on a constant currency basis.

Adjustments to arrive at core operating income in the current year period were $244 million, mainly due to $173 million of amortization and $44 million of product discontinuation charges. Adjustments to arrive at core operating income in the prior year period were $173 million, mainly due to $165 million of amortization.

Core operating income was $491 million (0%, -2% cc), in line with the prior year period on a reported basis. Core operating margin decreased 0.7 percentage points, primarily due to increased investment in R&D, including for recent acquisitions. Excluding a positive 0.3 percentage point impact from currency, core operating margin decreased 1.0 percentage points on a constant currency basis.

First half

Operating income was $715 million (+4%, +7% cc), compared to $686 million in the prior year period. Operating margin increased 0.3 percentage points as the current year period benefited from gains of $142 million on fair value remeasurements of investments in associated companies. Operating margin benefits were partially offset by increased investment in R&D, including for recent acquisitions, $44 million of product discontinuation charges in Vision Care, $23 million of acquisition and integration related items and a negative 0.2 percentage point impact from currency. Operating margin increased 0.5 percentage points on a constant currency basis.

Adjustments to arrive at core operating income in the current year period were $287 million, mainly due to $345 million of amortization, $44 million of product discontinuation charges and $23 million of acquisition and integration related items, partially offset by $142 million on fair value remeasurements of investments in associated companies. Adjustments to arrive at core operating income in the prior year period were $342 million, mainly due to $331 million of amortization.

Core operating income was $1.0 billion (-3%, -1% cc) in both the current and prior year periods. Core operating margin decreased 1.0 percentage points, primarily due to increased investment in R&D, including for recent acquisitions and a negative 0.3 percentage point impact from currency. Core operating margin decreased 0.7 percentage points on a constant currency basis.

Taxes

Second quarter

Reported tax expense was $23 million, compared to $57 million in the prior year period, and the average reported tax rate was 11.6%, compared to 20.4% in the prior year period. Core tax expense was $63 million, compared to $86 million in the prior year period, and the average core tax rate was 14.2%, compared to 19.0% in the prior year period. Both the average reported and core tax rates were lower in the current year period due to net benefits from discrete tax items and a more favorable mix of pre-tax income/(loss) across geographical tax jurisdictions.

First half

Reported tax expense was $87 million, compared to $144 million in the prior year period, and the average reported tax rate was 14.2%, compared to 23.4% in the prior year period. Core tax expense was $160 million, compared to $203 million in the prior year period, and the average core tax rate was 17.7%, compared to 21.2% in the prior year period. The average reported tax rate was lower in the current year period due to a non-taxable gain. In addition, both the average reported and core tax rates benefited from discrete tax items in the current year period. The prior year period included a net expense from discrete tax items.

Diluted earnings per share

Second quarter

Diluted earnings per share of $0.35 decreased 22%, or 25% on a constant currency basis, versus the prior year period, primarily due to lower operating income, including $44 million of product discontinuation charges, partially offset by lower tax expense. Core diluted earnings per share of $0.76 increased 3%, or 1% on a constant currency basis, versus the prior year period.

First half

Diluted earnings per share of $1.06 increased 12%, or 14% on a constant currency basis, primarily due to higher operating income, including gains of $142 million on fair value remeasurements of investments in associated companies, partially offset by $44 million of product discontinuation charges, and lower tax expense. Core diluted earnings per share of $1.50 decreased 1%. Excluding unfavorable currency impacts of 1%, core diluted earnings per share were in line with the prior year period in constant currency.

Cash flow highlights

Net cash flows from operating activities amounted to $889 million in the first six months of 2025, compared to $871 million in the prior year period. Free cash flow was $681 million in the first six months of 2025, compared to $667 million in the prior year period, primarily due to increased cash flows from operations.

During the second quarter, the company returned $287 million to shareholders. Capital returns include the repurchase of approximately 1.4 million shares⁴ for $121 million and dividend payments of $166 million.

2025 outlook

The Company updated its 2025 outlook as per the table below.

This outlook assumes the following:

• Aggregated markets grow approximately low-single digits;
• Tariff rates and exemptions announced as of August 11, 2025 persist through the end of the year. The Company expects a full-year gross tariff impact of approximately $100 million, which is expected to pressure cost of net sales. The Company anticipates fully offsetting this impact through operational actions and foreign exchange;
• Exchange rates as of the end of July prevail through year-end;
• Approximately 498.8 million weighted-averaged diluted shares.⁶

Webcast and Conference Call Instructions

The Company will host a conference call on August 20, 2025 at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss its second-quarter 2025 earnings results. The webcast can be accessed online through Alcon's Investor Relations website, i.e. investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available online within 24 hours after the event. To listen the Company's conference call, click on the link:

https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Second-Quarter-2025-Earnings-Conference-Call-2025-zlkjQxFmk0/default.aspx

The Company's second-quarter 2025 press release, interim financial report and supplemental presentation materials can be found online through Alcon's Investor Relations website, or by clicking on the link:

https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Second-Quarter-2025-Earnings-Conference-Call-2025-zlkjQxFmk0/default.aspx

Cautionary Note Regarding Forward-Looking Statements

This document contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our 2025 outlook, liquidity, revenue, gross margin, operating margin, effective tax rate, foreign currency exchange movements, earnings per share, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our market growth assumptions, our social impact and sustainability plans, targets, goals and expectations, and generally, our expectations concerning our future performance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict such as: cybersecurity breaches or other disruptions of our information technology systems; our ability to effectively manage the risks associated with the ethical use of disruptive technologies; compliance with data privacy, identity protection and information security laws, particularly with the increased use of artificial intelligence; the impact of a disruption in our global supply chain, including the effect of tariffs, or important facilities, particularly when we single-source or rely on limited sources of supply; our ability to manage social impact and sustainability matters; our reliance on outsourcing key business functions; global and regional economic, financial, monetary, legal, tax, political and social change; the increasingly challenging economic, political and legal environment in China; terrorism, war and other resulting events such as economic sanctions and trade restrictions; our ability to manage the risks associated with operating as a third party contract manufacturer; our ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers; our success in completing and integrating strategic acquisitions, including equity investments in early-stage companies; the success of our research and development efforts, including our ability to innovate to compete effectively; our ability to comply with the US Foreign Corrupt Practices Act of 1977 and other applicable anti-corruption laws; pricing pressure from changes in third party payor coverage and reimbursement methodologies; our ability to properly educate and train healthcare providers on our products; our ability to protect our intellectual property; our ability to comply with all laws to which we may be subject; the ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing; the effect of product recalls or voluntary market withdrawals; the accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets; the impact of unauthorized importation of our products from countries with lower prices to countries with higher prices; our ability to service our debt obligations; the need for additional financing through the issuance of debt or equity; the effects of litigation, including product liability lawsuits and governmental investigations; supply constraints and increases in the cost of energy; our ability to attract and retain qualified personnel; legislative, tax and regulatory reform; the impact of being listed on two stock exchanges; the ability to declare and pay dividends; the different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; the effect of maintaining or losing our foreign private issuer status under US securities laws; and the ability to enforce US judgments against Swiss corporations.

Additional factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this document speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise. We also undertake no obligation to update the 2025 outlook as circumstances evolve.

Intellectual Property

This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a "®" or a "™" are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.

Non-IFRS measures as defined by the Company

Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currency, EBITDA, free cash flow and net (debt)/liquidity.

Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures.

Core results

Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, product discontinuation charges, net gains and losses on fund investments and equity securities valued at fair value through profit and loss ("FVPL"), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, fair value remeasurements of investments in associated companies and certain acquisition related items. The following items that exceed a threshold of $10 million, are not operating expenses necessary to the operation of the business and have costs that will vary over periods are also excluded from core results: integration and divestment related income and expenses, divestment gains and losses, restructuring charges/releases and related items, legal related items, gains/losses on early extinguishment of debt or debt modifications, past service costs for post-employment benefit plans, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a $10 million threshold.

Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for certain items such as legal settlements in certain jurisdictions.

Alcon believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since they exclude items that can vary significantly from period to period, the core measures enable a helpful comparison of business performance across periods. For this same reason, Alcon uses these core measures in addition to IFRS and other measures as important factors in assessing its performance.

A limitation of the core measures is that they provide a view of Alcon operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of purchased intangible assets and restructurings.

Constant currency

Changes in the relative values of non-US currencies to the US dollar can affect Alcon's financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, we present information about changes in our net sales and various values relating to operating and net income that are adjusted for such foreign currency effects.

Constant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the Consolidated Income Statement excluding:

• the impact of translating the income statements of consolidated entities from their non-US dollar functional currencies to the US dollar; and

• the impact of exchange rate movements on the major transactions of consolidated entities performed in currencies other than their functional currency.

Alcon calculates constant currency measures by translating the current year's foreign currency values for sales and other income statement items into US dollars, using the average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars.

EBITDA

Alcon defines earnings before interest, tax, depreciation and amortization ("EBITDA") as net income excluding income taxes, depreciation of property, plant and equipment (including any related impairment charges), depreciation of right-of-use assets, amortization of intangible assets (including any related impairment charges), interest expense and other financial income and expense. Alcon management primarily uses EBITDA together with net (debt)/liquidity to monitor leverage associated with financial debts.

Free cash flow

Alcon defines free cash flow as net cash flows from operating activities less cash flow associated with the purchase or sale of property, plant and equipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator of Alcon's ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS.

Net (debt)/liquidity

Alcon defines net (debt)/liquidity as current and non-current financial debt less cash and cash equivalents, current investments, including time deposits, and derivative financial instruments. Net (debt)/liquidity is presented as additional information because management believes it is a useful supplemental indicator of Alcon's ability to pay dividends, to meet financial commitments and to invest in new strategic opportunities, including strengthening its balance sheet.

Growth rate and margin calculations

For ease of understanding, Alcon uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared to the prior year is shown as a positive growth.

Gross margins, core gross margins, operating income margins and core operating income margins are calculated based upon net sales unless otherwise noted.

Reconciliation of guidance for forward-looking non-IFRS measures

The forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable efforts, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. These items are uncertain, depend on many factors and could have a material impact on our IFRS results for the guidance period.

Financial tables

Net sales by region

Consolidated Income Statement (unaudited)

Segment contribution

Operating income

Non-operating income & expense

Reconciliation of IFRS results to core results (non-IFRS measure)

Three months ended June 30, 2025

Three months ended June 30, 2024

Six months ended June 30, 2025

Six months ended June 30, 2024

Explanatory footnotes to IFRS to core reconciliation tables

EBITDA (non-IFRS measure)

Cash flow and net (debt)/liquidity (non-IFRS measure)

Net (debt)/liquidity (non-IFRS measure)

Free cash flow (non-IFRS measure)

The following is a summary of free cash flow for the six months ended June 30, 2025 and 2024, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure:

About Alcon

Alcon helps people see brilliantly. As the global leader in eye care with a heritage spanning over 75 years, we offer the broadest portfolio of products to enhance sight and improve people’s lives. Our Surgical and Vision Care products touch the lives of people in over 140 countries each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors. Our more than 25,000 associates are enhancing the quality of life through innovative products, partnerships with Eye Care Professionals and programs that advance access to quality eye care. Learn more at www.alcon.com.

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