Alcon discontinued the intraocular lens programs it acquired through its 2019 purchase of PowerVision after clinical study data showed persistent unpredictable post-surgical visual outcomes in a subset of patients, resulting in a $402 million pre-tax non-cash charge during the second quarter of 2026.
Alcon said the PowerVision programs did not produce acceptable patient outcomes, principally because of unpredictable post-surgical visual results that could not be resolved despite multiple development efforts. The company consequently discontinued the programs and recorded a $287 million post-tax non-cash charge.
The charge does not affect Alcon’s cash position and does not change its previously communicated long-range financial objectives. However, it had a major impact on reported Q2 profitability. Operating income fell 96% to $11 million from $247 million, while reported operating margin declined to 0.4% from 9.6%.
The underlying business performed considerably better when excluding the PowerVision charge and other adjustments. Core operating income increased 17% to $574 million from $491 million, while core operating margin expanded 1.5 percentage points to 20.6%.
Total Q2 sales increased 8% to $2.78 billion, or 7% at constant currency. Core diluted EPS increased 11% to $0.84, compared with $0.76 a year earlier, even though reported diluted EPS fell to zero primarily because of the PowerVision charge.
Recent product launches continued driving growth elsewhere in Alcon’s portfolio. Surgical Equipment/Other sales surged 26% to $279 million, led by new equipment including the Unity platform, while Ocular Health sales increased 13% to $486 million, supported by dry-eye products including TRYPTYR and Systane.
Alcon is also continuing to invest in next-generation intraocular lens technology despite discontinuing PowerVision. The company announced a non-exclusive collaboration with RxSight to jointly develop adjustable presbyopia-correcting IOLs that combine Alcon optical designs with RxSight’s post-operative light-adjustable technology.
KEY QUOTES:
“Our team delivered strong second-quarter results and executed well across the business. UNITY, PanOptix Pro, TRYPTYR and other recent launches are driving growth and reinforcing the strength of our innovation engine.”
David J. Endicott, Chief Executive Officer Of Alcon
