Alcon lifts margin outlook as tariff refunds boost profitability forecast

Alcon (ALC) raised its full-year profitability target last month after benefiting from US tariff refunds, sending its shares up around 4% in early trading and to the top of Europe's benchmark Stoxx 600 index.

The Swiss-American eye care company, which generated 45% of its net sales in the United States in the first half of 2026 and operates most of its major production facilities there, now expects its core operating profit margin to expand by 90 to 190 basis points this year, up from prior guidance of 70 to 170 bps. The improvement was driven by stronger margin performance in its Equipment and Ocular Health divisions.

Alcon also revised down its estimated full-year tariff hit to between $40mn and $90mn, from an earlier, higher range, after factoring in an anticipated refund of around $60mn.

The company lifted its guidance for core diluted earnings per share for the second time this year, raising the projected growth range from 10–13% to 12–15%.

Second-quarter net sales rose 7.9% year on year to $2.78bn, narrowly ahead of analyst consensus compiled by LSEG.

Analysts at Vontobel pointed to improving margins and Alcon's recently announced collaboration with lens manufacturer RxSight (RXST.O) as evidence of positive strategic momentum at the company.