Release Date: August 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alcon Inc ALC delivered 7% sales growth in Q2 2026, driven by broad-based strength across both surgical and vision care franchises.
- Unity VCS equipment sales surged 25% year-over-year, with strong demand and higher-than-expected average selling prices, indicating robust commercial traction.
- Panoptix Pro IOL adoption exceeded expectations, with nearly all US Panoptix accounts converted and the platform representing ~90% of Panoptix implants, supporting share stabilization.
- The pipeline is advancing with new product launches (e.g., Vivity Pro, True Plus, Unity-M microscope) and a collaboration with RxSight for next-generation adjustable lenses, positioning for future growth.
- Core operating margin expanded 160 basis points year-over-year to 20.6%, and the company raised its full-year EPS growth outlook to 12%-15% in constant currency.
Negative Points
- Alcon Inc (ALC) discontinued its Power Vision IOL program due to persistent, unpredictable shifts in post-operative distance vision, failing to meet performance standards.
- Implantables growth remained subdued at 1% in Q2, with IOLs up only 2% amid increased competitive launches and a flat US cataract procedure volume.
- US cataract procedure volumes were flat, and the company expects continued softness in the US market, which could pressure future growth.
- The company faces ongoing challenges in surgical glaucoma, with lower sales and a difficult reimbursement environment impacting the Hydrus product.
- Contact lens growth was partially offset by declines in legacy products, and international markets contributed less to growth due to pricing pressures.
Q & A Highlights
Q: On equipment, with Unity VCS holding better pricing than expected and a healthy funnel, what percentage of the 30,000 installed base will have upgraded by year-end, and what will the replacement cycle look like over the next 2-3 years?
A: David Endicott (CEO): We are on track with our funnel and the movement of the base. We've actually gained share in this market. Over the 10-year cycle, we expect to replace the 30,000 base, with a little more upfront and a little less on the back end. In the first couple of years of launch, we'll do a bit better, then it will settle into a steady replacement basis.
Q: With the write-down of Power Vision and the new RxSight collaboration, what do you hope to achieve by going purely an adjustable route versus an adjustable and accommodative route, and how will it impact your core franchise?
A: David Endicott (CEO): We haven't made a decision to do one or the other; we still think adjustable accommodating is the best long-term answer, but we couldn't get there with this technology. RxSight is an intermediate step toward tunability with our existing optics. Power Vision was a big idea that generated valuable insights, but we don't have the technology yet for a fully accommodating lens. Somebody will figure it out, and I suspect it will be us.
Q: On the top-line guide of 5% to 7%, is it still reasonable to think the 7% is plausible for the full year given tougher comps? Also, when will Panoptix Pro, Vivity Pro, and True Plus be approved in the US and Europe?
A: Tim Stonecipher (CFO): We give a range of 5% to 7% and historically we've been a midpoint type of company. There will be tougher comps in equipment with Unity VCS, but launches like Unity CS, TripTier, and Valaya should carry us through. David Endicott (CEO): Panoptix Pro is approved in both the US and Europe, with Europe launching in June. Vivity Pro is expected late this year or early next, as it's been submitted to both regulators. True Plus has CE Mark approval, but we're managing its rollout carefully to prioritize Panoptix Pro and Vivity Pro.
Q: On equipment, what was the contribution from Valeda in the quarter, and what is the peak sales potential?
A: David Endicott (CEO): We don't call out individual products, but Valeda contributed several points of growth in the quarter. The main drivers in equipment are Unity CS and VCS. We think Valeda can reach $100 million to $150 million in peak sales within a three-to-five-year frame, following a typical new product curve.
Q: On contact lenses, how much of the growth was price versus volume, and how are you thinking about the market's ability to take price in the back half and into 2027?
A: David Endicott (CEO): Price was about 4% of the 5% growth in Q2, driven by two price increases in the US. The US share performance was outstanding, with almost 1.5 share points gained, driven by promotion of dailies like Total One and Precision One. We continue to see legacy value decline, but as that goes away, more growth will come to the surface. We have products in every category, including reusables like Precision 7 and Total 30 multifocal for astigmatism, which creates new avenues for growth.
Q: On Unity DX, can you provide an update on the timeline and its role in the ecosystem?
A: David Endicott (CEO): We received approval for DX earlier this year, but it wasn't in a manufacturable, scalable condition. We've been working on making it durable and serviceable. It uses hyperparallel OCT, which will be great for pre-op cataract use. It should be out in pilot form later this year, and we expect revenue from the middle of next year. It plays a big role in digitizing the entire OR ecosystem, which is very exciting.
Q: On the strong Unity upgrade adoption, what are the key drivers? Is it converting older equipment, efficiency benefits, or increased procedures?
A: David Endicott (CEO): The big idea has been conversion on retina procedures. We changed almost everything—cut speed, entry system, gauge, and fluidics—making it much safer and faster. If you were doing four or five vitrectomies a day, you could probably do another one, saving 20% to 30% time. This has been a positive halo, with more VCS sales than expected. On the cataract side, the elegance of 4D Phaco keeps the nucleus centered, making it safer and faster. If you do 20 cataracts a day, you'd probably do 21. The payback period is short if scheduled correctly.
Q: On implantables, growth was subdued again this quarter. With competition accelerating and lapping the US Pro contribution, can you help us think about 2H growth and confidence that 2027 implantables can get back to market growth?
A: David Endicott (CEO): Implantables growth is a function of market growth, penetration, and share. Market growth in the US has been below expectations, but we don't anticipate a change for the rest of the year. Penetration is positive, with US ATIOL penetration up 180 basis points, which is worth more to us than market growth. Share is a wild card, but we have a steady cadence of advances. Panoptix Pro is a significant improvement and gaining share in the trifocal space. Vivity Pro will offer better near vision, and True Plus enters the monofocal plus segment. We're excited about the future, but we need time to weather the storm of new entrants.
Q: On ocular health, what percentage of the Systane business is now multi-dose preservative-free (MDPF), and how sustainable is the broader Systane growth?
A: David Endicott (CEO): MDPF is roughly 15% of the Ocular Health business. Systane has been a double-digit grower, and we expect increased promotion in the back half. The US market is moving toward MDPF, which the rest of the world has already adopted, so it's a good opportunity for us.
Q: On the eye whitener product
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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