Shareholders of Alcon Inc.

980

1,018

974

Net income attributable to:

980

1,018

974

Non-controlling interests

$ 0

Earnings per share

Basic (in dollars per share)

^[1]

$ 1.99

$ 2.06

$ 1.98

Diluted (in dollars per share)

^[1]

$ 1.98

$ 2.05

$ 1.96

Weighted average number of shares outstanding (millions)

Basic (in shares)

493.2

494.4

493.0

Diluted (in shares)

496.2

497.5

496.5

[1]	Earnings per share is calculated on the amount of net income attributable to shareholders of Alcon Inc.

Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2025

Dec. 31, 2024

Dec. 31, 2023

Statement of comprehensive income [abstract]

Other comprehensive income to be eventually recycled into the Consolidated Income Statement:

$ 980

$ 1,018

$ 974

Currency translation effects, net of taxes

^[1]

176

(116)

25

Total of items to eventually recycle

176

(116)

25

Other comprehensive income never to be recycled into the Consolidated Income Statement:

Actuarial gains/(losses) from defined benefit plans, net of taxes

^[2]

6

14

(30)

Fair value adjustments on equity investments, net of taxes

^[3]

27

36

(5)

Total of items never to be recycled

33

50

(35)

Total comprehensive income for the period attributable to:

1,189

952

964

Shareholders of Alcon Inc.

1,189

952

964

Non-controlling interests

$ 0

[1]	Amount is net of tax expense of $2 million in 2025. Amounts are net of tax benefit of $1 million in 2024 and 2023.
[2]	Amounts are net of tax expense of $3 million and $5 million in 2025 and 2024, respectively. Amount is net of tax benefit of $8 million in 2023.
[3]	Amounts are net of tax expense of $4 million, $16 million and $3 million in 2025, 2024 and 2023, respectively.

Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Statement of comprehensive income [abstract]
Currency translation effects, tax expense (benefit)	$ 2	$ (1)	$ (1)
Actuarial gains/(losses) from defined benefit plans, tax expense (benefit)	3	5	(8)
Fair value adjustments on equity investments, tax expense (benefit)	$ 4	$ 16	$ 3

Consolidated Balance Sheet SFr in Millions, $ in Millions	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Non-current assets
Property, plant & equipment	$ 4,774	$ 4,389
Right-of-use assets	447	449
Goodwill	9,256	8,946
Intangible assets other than goodwill	9,006	8,587
Deferred tax assets	458	421
Financial assets	768	652
Other non-current assets	397	594
Total non-current assets	25,106	24,038
Current assets
Inventories	2,391	2,268
Trade receivables	1,942	1,736
Income tax receivables	20	23
Cash and cash equivalents	1,527	1,676
Time deposits	80	153
Other current assets	489	453
Total current assets	6,449	6,309
Total assets	31,555	30,347
Equity
Share capital	20	20
Reserves	22,014	21,533
Equity attributable to shareholders of Alcon Inc.	22,034	21,553
Non-controlling interests	1	0
Total equity	22,035	21,553
Non-current liabilities
Financial debts	4,162	4,538
Lease liabilities	429	429
Deferred tax liabilities	941	724
Provisions & other non-current liabilities	939	825
Total non-current liabilities	6,471	6,516
Current liabilities
Trade payables	926	773
Financial debts	575	105
Lease liabilities	80	68
Current income tax liabilities	182	104
Provisions & other current liabilities	1,286	1,228
Total current liabilities	3,049	2,278
Total liabilities	9,520	8,794
Total equity and liabilities	$ 31,555	$ 30,347

Consolidated Statement of Changes in Equity - USD ($)
$ in Millions

Total

Share capital

Other reserves

Fair value adjustments on equity investments

Actuarial gains/(losses) from defined benefit plans

Cumulative currency translation effects

Total value adjustments

^[1]

Total

Non-controlling interests

Beginning balance at Dec. 31, 2022

$ 19,677

$ 20

$ 19,673

$ (33)

$ 67

$ (50)

$ (16)

$ 19,677

$ 0

Other comprehensive income/(loss)

974

(10)

(5)

(30)

25

(10)

964

974

(5)

(30)

25

(10)

964

0

Dividends

(117)

Ending balance at Dec. 31, 2023

86

Other movements

^[2]

14

8

6

14

Total other movements

(17)

(23)

6

^[1]

6

(17)

0

20,624

20

20,624

(32)

37

(25)

(20)

20,624

0

Other comprehensive income/(loss)

1,018

(66)

36

14

(116)

(66)

952

1,018

36

14

(116)

(66)

952

0

Dividends

(131)

Ending balance at Dec. 31, 2024

110

Other movements

^[2]

(2)

67

(69)

(2)

Total other movements

(23)

46

(69)

(23)

0

21,553

20

21,688

(65)

51

(141)

(155)

21,553

0

Other comprehensive income/(loss)

980

209

27

6

176

209

Acquisition of treasury shares

1,189

980

27

6

176

209

1,189

0

Dividends

(168)

(682)

Initial recognition of non-controlling interests

116

27

Changes in non-controlling interests

(26)

Other movements

^[2]

26

36

(10)

26

Total other movements

(707)

(698)

(10)

(708)

1

Ending balance at Dec. 31, 2025

$ 22,035

$ 20

$ 21,970

$ (48)

$ 57

$ 35

$ 44

$ 22,034

$ 1

[1]

"Total value adjustments" are presented net of the corresponding tax effects.

[2]

Activity includes hyperinflationary accounting (see Note 2). The year ended December 31, 2025 also includes reversals of previously-recognized deferred taxes and reclassifications to Other reserves related to the settlements of equity investments. The year ended December 31, 2024 also includes reclassifications to Other reserves related to the transfer of an equity investment to an investment in associated company and the settlement of an equity investment. The year ended December 31, 2023 also includes a reclassification to Other reserves related to the sale of an equity investment.

Consolidated Statement of Cash Flows - USD ($)	12 Months Ended
Consolidated Statement of Cash Flows - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Statement of cash flows [abstract]
Net income	$ 980,000,000	$ 1,018,000,000	$ 974,000,000
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization, impairments and fair value adjustments	1,191,000,000	1,226,000,000	1,226,000,000
Equity-based compensation expense	162,000,000	150,000,000	144,000,000
Non-cash change in current and non-current provisions and other non-current liabilities	84,000,000	52,000,000	21,000,000
Losses on disposal and other adjustments on property, plant & equipment and other non-current assets, net	16,000,000	16,000,000	27,000,000
Net gain on divestment of product rights	0	(57,000,000)	0
Interest expense	204,000,000	192,000,000	189,000,000
Other financial income & expense	(22,000,000)	(43,000,000)	18,000,000
Share of loss from associated companies	18,000,000	8,000,000	0
Taxes	180,000,000	238,000,000	(142,000,000)
Interest received	63,000,000	69,000,000	33,000,000
Interest paid	(190,000,000)	(182,000,000)	(176,000,000)
Other financial payments	(8,000,000)	(8,000,000)	(7,000,000)
Taxes paid	(107,000,000)	(326,000,000)	(255,000,000)
Net cash flows before working capital changes and net payments out of provisions and other non-current liabilities	2,571,000,000	2,353,000,000	2,052,000,000
Net payments out of provisions and other cash movements in non-current liabilities	(60,000,000)	(87,000,000)	(260,000,000)
Change in net current assets and other operating cash flow items	(240,000,000)	(189,000,000)	(404,000,000)
Net cash flows from operating activities	2,271,000,000	2,077,000,000	1,388,000,000
Purchase of property, plant & equipment	(543,000,000)	(473,000,000)	(658,000,000)
Proceeds from sale of property, plant & equipment	5,000,000	0	0
Purchase of intangible assets	(120,000,000)	(197,000,000)	(193,000,000)
Purchase of investments in associated companies	(8,000,000)	(159,000,000)	(10,000,000)
Payments for financial assets	(56,000,000)	(128,000,000)	(233,000,000)
Purchase of time deposits	(80,000,000)	(150,000,000)	0
Proceeds from time deposits	150,000,000	0	0
Proceeds from financial assets	8,000,000	9,000,000	2,000,000
Acquisitions of assets, net of cash acquired	0	0	(2,000,000)
Acquisitions of businesses, net of cash acquired	(692,000,000)	(61,000,000)	0
Other investing cash flows	(8,000,000)	(8,000,000)	0
Net cash flows used in investing activities	(1,344,000,000)	(1,167,000,000)	(1,094,000,000)
Dividends paid to shareholders of Alcon Inc.	(166,000,000)	(130,000,000)	(116,000,000)
Repayment of financial debts	(112,000,000)	(47,000,000)	(34,000,000)
Proceeds from financial debts, net of issuance costs	59,000,000	59,000,000	69,000,000
Other net changes in financial debts	38,000,000	(66,000,000)	37,000,000
Payments for acquisition of treasury shares	(676,000,000)	0	0
Lease payments	(81,000,000)	(83,000,000)	(79,000,000)
Payment of withholding taxes related to equity-based compensation	(47,000,000)	(47,000,000)	(49,000,000)
Transactions with non-controlling interests	(26,000,000)	0	0
Other financing cash flows	(108,000,000)	(8,000,000)	(39,000,000)
Net cash flows used in financing activities	(1,119,000,000)	(322,000,000)	(211,000,000)
Effect of exchange rate changes on cash and cash equivalents	43,000,000	(6,000,000)	31,000,000
Net change in cash and cash equivalents	(149,000,000)	582,000,000	114,000,000
Cash and cash equivalents at January 1	1,676,000,000	1,094,000,000	980,000,000
Cash and cash equivalents at December 31	$ 1,527,000,000	$ 1,676,000,000	$ 1,094,000,000

Description of business	12 Months Ended
Description of business	Dec. 31, 2025
Corporate information and statement of IFRS compliance [abstract]
Description of business	Description of business Alcon Inc. (the "Company") and the subsidiaries it controls (collectively "Alcon") is a leading eye care company. Alcon is a global company specializing in the research, development, manufacturing and marketing of a broad range of eye care products within two businesses: Surgical and Vision Care. Alcon is a stock corporation organized under the laws of Switzerland, domiciled in Fribourg, Switzerland, with global headquarters located in Geneva, Switzerland. The shares of the Company are listed on the SIX Swiss Stock Exchange ("SIX") and on the New York Stock Exchange ("NYSE") under the symbol “ALC”. The Consolidated Financial Statements of Alcon are comprised of the Consolidated Balance Sheet as of December 31, 2025 and 2024 and the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for each of the years ended December 31, 2025, 2024 and 2023. The country of operation and percentage ownership of the legal entities with "Total assets" or "Net sales" in excess of $5 million included in the Consolidated Financial Statements are disclosed in Note 27.

Selected accounting policies

12 Months Ended

Dec. 31, 2025

Disclosure Of Notes And Other Explanatory Information [Abstract]

Selected accounting policies

Basis of preparation

The accompanying Consolidated Financial Statements present our historical financial position, results of operations, comprehensive income and cash flows in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”). Alcon's principal accounting policies are described in this Note.

Principles of consolidation and equity accounting

The Consolidated Financial Statements include the accounts of the Company and all entities over which the Company directly or indirectly has control. In the event that the Company directly or indirectly has control over another entity that is not wholly owned, the assets, liabilities, results of operations and cash flows of such entity are included in the Company's Consolidated Financial Statements with non-controlling interests recognized to reflect the portion of equity that is not attributable, directly or indirectly, to shareholders of the Company. The Consolidated Financial Statements of the Company are prepared in accordance with IFRS as issued by the IASB. They are prepared in accordance with the historical cost convention except for items that are required to be accounted for at fair value. All intercompany transactions and accounts within Alcon were eliminated.

The Company's financial year-end is December 31, which is also the annual closing date of the individual entities' financial statements incorporated into the Consolidated Financial Statements.

Associated companies are all entities over which Alcon has a significant influence but not control or joint control. This is generally the case where Alcon holds between 20% and 50% of an entity's voting rights. Alcon can also have significant influence over an investee where it holds less than 20% of the voting rights if Alcon has significant transactions with the investee, Alcon has influence over the investee’s policy making decisions through Board representation, Alcon shares significant technical information with the investee or Alcon exchanges personnel with the investee. Investments in associated companies are accounted for using the equity method from the date when the investee is determined to be an associated company until the date when Alcon loses significant influence over the investee. Under the equity method, the investment is initially recognized at cost. Investments in associated companies acquired in stages are accounted for under the fair value as deemed cost approach. Under this policy election, Alcon revalues its pre-existing investment to fair value on the date the investee becomes an associated company. Transaction costs for the acquisition of an additional stake are expensed when incurred. The carrying amount of the investment is subsequently increased or decreased, to recognize Alcon's share of profit or loss and other comprehensive income of the associated company after the date of initial recognition.

Alcon eliminates its share of profit/(loss) from unrealized gains/(losses) from its transactions with associated companies against the carrying amount of the investment. Dividends received or receivable from associated companies are recognized as a reduction in the carrying amount of the investment.

The use of the equity method is discontinued from the date when the investee is determined to no longer be an associated company. The investment retained or disposed after cessation of the equity method is remeasured at fair value, and any gain or loss on such remeasurement is recognized in "Other income" or "Other expense", respectively in the Consolidated Income Statement.

The carrying amounts of investments in associated companies are tested for impairment when triggering events are identified.

Use of estimates and assumptions

The preparation of Consolidated Financial Statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the period, that affect the reported amounts of assets and liabilities as well as revenues and expenses. Because of the inherent uncertainties, actual outcomes and results may differ from management's assumptions and estimates.

Foreign currencies

The Consolidated Financial Statements are presented in US dollars ("USD"). The functional currency of individual entities incorporated into the Consolidated Financial Statements is generally the local currency of the respective entity. The functional currency used for the reporting of certain Swiss entities is USD instead of their respective local currencies. This reflects the fact that the cash flows and transactions of these entities are primarily denominated in this currency.

For entities not operating in hyperinflationary economies, the entities' results, financial position and cash flows that do not have USD as their functional currency are translated into USD using the following exchange rates:

•Income, expense and cash flows using for each month the average exchange rate, with the USD values for each month being aggregated during the year;

•Balance sheet using period-end exchange rates; and

•Resulting exchange rate differences are recognized in other comprehensive income.

The hyperinflationary economies in which Alcon operates are Argentina, Turkey and Venezuela, all of which were hyperinflationary for all years presented.

Hyperinflationary accounting under IAS 29, Financial Reporting in Hyperinflationary Economies, requires restatement of non-monetary assets and liabilities to the general price index at the end of the period. The income statement and components of comprehensive income are restated for changes in general price index from the period in which the transactions were initially recorded to the end of the reporting period, with the restated amounts translated using period-end exchange rates. Alcon records the impacts of applying IAS 29 in "Other reserves" in the Consolidated Statement of Changes in Equity and "Other financial income & expense" in the Consolidated Income Statement.

Treasury shares

Common shares repurchased are measured at fair value on their trade date and include transaction costs directly attributable to the repurchase. They are held in treasury and are deducted from equity. No gains or losses are recognized in the Consolidated Income Statement on the purchase or issuance of such shares. Payments for the acquisition of treasury shares are recorded in "Payments for acquisition of treasury shares" in the Consolidated Statement of Cash Flows.

Treasury share repurchases denominated in a currency other than the reporting currency are valued at the trade date using the spot exchange rate for the reporting currency. Any realized foreign exchange gains or losses arising between the trade date and settlement date is recognized in "Other financial income & expense" in the Consolidated Income Statement. If the trade date by the broker or bank and settlement date of the repurchase by the Company fall in different reporting periods, an accrued liability is recognized at period-end for the settlement obligation in "Provisions & other current liabilities" in the Consolidated Balance Sheet.

Acquisition of assets

Assets separately acquired are initially recognized on the balance sheet at cost if they meet the criteria for capitalization. The capitalized cost of the asset includes the purchase price and any directly attributable costs for bringing the asset into the condition to operate as intended. Expected costs for obligations to dismantle and remove property, plant and equipment when it is no longer used are included in their cost.

Property, plant and equipment

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Freehold land is not depreciated. The related depreciation expense is included in the costs of the functions using the asset or "Cost of net sales" in the Consolidated Income Statement.

Property, plant and equipment are assessed for impairment at the cash generating unit ("CGU") level whenever there is an indication that the balance sheet carrying amount may not be recoverable, using cash flow projections for the useful life.

The below table shows the respective useful lives for property, plant and equipment.


			Useful life
Buildings and improvements			10 to 40 years
Machinery and other equipment
Machinery and equipment			5 to 20 years
Furniture and vehicles			5 to 10 years
Computer hardware			3 to 7 years

Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary may include:

•Fair values of the assets transferred;

•Liabilities incurred to the former owners of the acquired business;

•Equity interests issued by the Company;

•Fair value of an asset or liability resulting from a contingent consideration arrangement; and

•Fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill, or directly in the income statement if it is a bargain purchase. Alcon primarily uses net present value techniques, utilizing post-tax cash flows and discount rates in estimating the fair value of identifiable assets acquired when allocating the purchase consideration for the acquisition. The estimates of the fair values involve significant judgment by management and include assumptions with measurement uncertainty such as the amount and timing of projected cash flows, long-term sales forecasts, the timing and probability of regulatory and commercial success and the discount rate.

If the business combination is achieved in stages, the acquisition date carrying value of Alcon’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in "Other income" or "Other expense", respectively, in the Consolidated Income Statement.

Alcon recognizes non-controlling interests in the acquired entity either at fair value or at the non-controlling interests' proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis.

Acquisition related costs are expensed as incurred.

Alcon may elect on a transaction-by-transaction basis to apply the optional concentration test to assess whether a transaction qualifies as a business. Under the test, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, Alcon will account for the transaction as an asset purchase and not a business combination.

If the concentration test is not met, or Alcon elects not to apply this optional test, Alcon will perform an assessment focusing on the existence of inputs and processes that have the ability to create outputs to determine whether the transaction is an asset purchase or a business combination.

Goodwill and intangible assets

The annual impairment testing date is Alcon's financial year-end, December 31.

Goodwill

Goodwill arises in a business combination and is the excess of the fair value of purchase consideration to acquire a business over the underlying fair value of the net identified assets acquired. It is allocated to groups of CGUs which are usually represented by the reportable segments, which are the same as Alcon's operating segments. Goodwill is tested for impairment annually at the level of these groups of CGUs, and any impairment charges are recorded under "Other expense" in the Consolidated Income Statement.

Intangible assets available-for-use

Alcon has the following classes of available-for-use intangible assets: Currently marketed products, Marketing know-how, Technologies, Other intangible assets (including software) and the Alcon brand name.

Currently marketed products represent the composite value of acquired intellectual property, patents, and distribution rights and product trade names.

Marketing know-how represents the value attributable to the expertise acquired for marketing and distributing Alcon surgical products.

Technologies represent identified and separable acquired know-how used in the research, development and production processes.

Significant investments in internally developed and acquired software are capitalized and included in the "Other" category and amortized once available for use.

The Alcon brand name is shown separately as it is the only Alcon intangible asset that is available for use with an indefinite useful life. Alcon considers it appropriate that the brand name has an indefinite life since the branded products have a history of strong revenue and cash flow performance, and Alcon has the intent and ability to support the brand with spending to maintain its value for the foreseeable future.

Except for the Alcon brand name, intangible assets available for use are amortized over their estimated useful lives on a straight-line basis and evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The Alcon brand name is not amortized, but evaluated for potential impairment annually.

The below table shows the respective useful lives for available-for-use intangible assets and the location in the Consolidated Income Statement in which the respective amortization and any potential impairment charge is recognized.


	Useful life	Income statement location for amortization and impairment charges
Currently marketed products	5 to 20 years	"Cost of net sales"
Marketing know-how	25 years	"Cost of net sales"
Technologies	10 to 20 years	"Cost of net sales" or "Research and Development"
Other (including software)	3 to 10 years	In the respective functional expense
Alcon brand name	Not amortized, indefinite useful life	"Other expense"

Acquired In-Process Research & Development ("IPR&D")

Acquired research and development intangible assets, which are still under development and have accordingly not yet obtained marketing approval, are recognized as IPR&D.

IPR&D is not amortized, but evaluated for potential impairment on an annual basis or when facts and circumstances warrant. IPR&D is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its fair value less costs of disposal ("FVLCOD") and its value in use ("VIU"). Usually, Alcon applies the FVLCOD method for its impairment assessments. Under this approach when evaluating IPR&D for potential impairment, FVLCOD is estimated using net present value techniques utilizing post-tax cash flows and discount rates as there are no direct or indirect observable prices in active markets for identical or similar assets. The estimates used in calculating the net present values involve significant judgment by management and include assumptions with measurement uncertainty such as, the amount and timing of projected cash flows, long-term sales forecasts, discount rate, and the timing and probability of regulatory and commercial success, which includes our evaluation of clinical trial outcomes. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates.

Any impairment charge is recorded in the Consolidated Income Statement under "Research & development".

Once a project included in IPR&D has been successfully developed, it is transferred to the "Currently marketed products" category.

Impairment of goodwill, Alcon brand name and definite lived intangible assets

A CGU to which goodwill has been allocated (reportable segments) is considered impaired when its carrying amount, including the goodwill, exceeds its recoverable amount, which is defined as the higher of its FVLCOD and its VIU. If the recoverable amount of the reportable segment is less than its carrying amount, an impairment loss shall be recognized. The impairment loss shall be allocated to reduce the carrying amount of any goodwill allocated to the reportable segment first, with any remaining impairment loss allocated to other assets of the reportable segment on a pro-rata basis of their carrying amount.

An intangible asset other than goodwill is considered impaired when its balance sheet carrying amount exceeds its estimated recoverable amount, which is defined as the higher of its FVLCOD and its VIU. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss. Usually, Alcon applies the FVLCOD method for its impairment assessment. In most cases, no direct or indirect observable market prices for identical or similar assets are available to measure the FVLCOD. Therefore, an estimate of FVLCOD is based on net present value techniques utilizing post-tax cash flows and discount rates. In the limited cases where the VIU method would be applied, net present value techniques would be applied using pre-tax cash flows and discount rates.

FVLCOD reflects estimates of assumptions that market participants would be expected to use when pricing the asset or CGUs, and for this purpose management considers the range of economic conditions that are expected to exist over the remaining useful life of the asset.

The estimates used in calculating the net present values involve significant judgment by management and include assumptions with measurement uncertainty, such as the following:

•Amount and timing of projected cash flows;

•Long-term sales forecasts, including sales growth rates;

•Royalty rate for the Alcon brand name;

•Terminal growth rate; and

•Discount rate.

Other assumptions used in the net present values calculation include:

•Future tax rate;

•Actions of competitors (launch of competing products, marketing initiatives, etc.); and

•Outcome of R&D activities and forecast of related costs (future product developments).

Generally, for intangible assets with a definite useful life Alcon uses cash flow projections for the whole useful life of these assets. For goodwill and the Alcon brand name, Alcon generally utilizes cash flow projections for a five-year period based on management forecasts, with a terminal value based on cash flow projections considering the long-term expected growth rates and impact of demographic trends of the population to which Alcon products are prescribed, for later periods. Probability-weighted scenarios are typically used.

Discount rates used consider Alcon's estimated weighted average cost of capital adjusted for specific country and currency risks associated with cash flow projections to approximate the weighted average cost of capital of a comparable market participant. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using net present value techniques.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term and highly liquid investments. Other short-term and highly liquid investments are classified as cash and cash equivalents when original or weighted-average maturities are three months or less and amounts are readily convertible to known amounts of cash which are subject to an insignificant risk of changes in value. Bank overdrafts are usually presented within current "Financial debts" on the Consolidated Balance Sheet except in cases where a right of offset has been agreed with a bank which then allows for presentation on a net basis.

Time deposits

Time deposits are financial instruments recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Time deposits with a maturity date greater than three months but less than twelve months are reported in the Consolidated Balance Sheet in "Time deposits" in current assets. Time deposits with a maturity date greater than twelve months are reported in "Financial assets" in non-current assets. Interest income is recognized in "Other financial income & expense" in the Consolidated Income Statement.

Financial assets

Financial assets measured at amortized cost

Non-current financial assets measured at amortized cost generally include long-term note receivables, long-term receivables from customers, primarily related to surgical equipment sales arrangements, loans, advances and other deposits. The carrying value of these assets reflects the time value of money, less any allowances for uncollectable amounts.

Alcon assesses on a forward-looking basis the expected credit losses associated with its non-current financial assets valued at amortized cost.

Purchased or originated credit-impaired financial assets are financial assets that are credit-impaired on initial recognition with one or more events that have a detrimental impact on the estimated future cash flows of those financial assets. The interest income of the financial assets is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset. The calculation does not revert to the gross basis even if the credit risk of the financial asset subsequently improves so that the financial asset is no longer credit-impaired. Interest income is recognized in "Other financial income and expense" in the Consolidated Income Statement.

The lifetime expected credit loss ("ECL") of the purchased or originated credit-impaired financial assets is analyzed at inception and utilized in calculating the credit-adjusted effective interest rate, with no Day 1 impact on the carrying value of the financial assets. The value of any collateral related to the financial assets is considered in estimating the lifetime ECL at inception. For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated by discounting the estimated future cash flows, including ECLs, to the amortized cost of the debt instrument on initial recognition. Any change in the lifetime ECL from inception would be reflected as a credit loss in the Consolidated Income statement.

For long-term receivables from customers, provisions for uncollectable amounts, which are based on their expected credit losses, are recorded as marketing and selling costs recognized in the Consolidated Income Statement within "Selling, general & administration" expenses.

For loans, advances and other deposits valued at amortized cost, impairments, which are based on their expected credit losses, and exchange rate losses are included in "Other expense" in the Consolidated Income Statement and exchange rate gains and interest income, using the effective interest rate method, are included in "Other income" in the Consolidated Income Statement.

Financial assets measured at fair value through profit and loss ("FVPL")

Financial assets measured at FVPL generally include options to acquire private companies, fund investments and derivative financial instruments. Changes in the fair value of options to acquire development stage private companies are charged to "Research and development" expense in the Consolidated Income Statement. Unrealized or realized gains and losses for fund investments, including exchange gains and losses, are recognized in the Consolidated Income Statement in "Other income" for gains and "Other expense" for losses.

Derivative financial instruments are initially recognized in the Consolidated Balance Sheet at fair value and are remeasured to their current fair value at the end of each subsequent reporting period. The valuation of forward exchange rate contracts and foreign exchange swaps are based on the discounted cash flow model, using interest curves and spot rates at the reporting date as observable inputs. Unsettled forward contracts and swaps are measured at fair value at the reporting date with changes in fair value recorded to the Consolidated Income Statement as unrealized gains or losses in "Other financial income & expense". Settled forward contracts and swaps are measured at maturity date at fair value with corresponding realized gains or losses recognized in the Consolidated Income Statement in "Other financial income & expense". No hedge accounting is applied for these arrangements.

Financial assets measured at fair value through other comprehensive income ("FVOCI")

Equity investments, including equity securities and convertible notes receivable held as strategic investments, are generally designated at the date of acquisition as financial assets measured at FVOCI with no subsequent recycling through profit and loss. Unrealized gains and losses, including exchange gains and losses, are recorded as a fair value adjustment in the Consolidated Statement of Comprehensive Income. They are reclassified to "Other reserves" when the equity investment is sold or settled. If these equity securities and convertible notes receivable are not designated at the date of acquisition as financial assets valued at FVOCI, they are valued at FVPL, as described above.

For all financial assets measured at fair value, Alcon recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the transfers have occurred.

Inventories

Inventory is valued at the lower of acquisition or production cost determined on a first-in, first-out basis and net realizable value. This value is used for the "Cost of net sales" and "Cost of other revenues" in the Consolidated Income Statement. Unsalable inventory is fully written off in the Consolidated Income Statement under "Cost of net sales" and "Cost of other revenues".

Trade receivables

Trade receivables are initially recognized at their invoiced amounts, including any related sales taxes less adjustments for estimated revenue deductions such as chargebacks and cash discounts.

Provisions for expected credit losses are established using an expected credit loss model ("ECL"). The provisions are based on a forward-looking ECL, which includes possible default events on the trade receivables over the entire holding period of the trade receivable. These provisions represent the difference between the trade receivable's carrying amount and the estimated net collectible amount. Charges for doubtful trade receivables are recorded as marketing and selling costs and are recognized in the Consolidated Income Statement within "Selling, general & administration" expenses.

Leases

As lessee, Alcon assesses whether a contract contains a lease at inception or modification of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Alcon allocates contractual payments between lease and non-lease components based on their relative stand-alone price. Alcon recognizes a right-of-use asset and a corresponding lease liability for all arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases for which Alcon has elected the recognition exemptions allowed under IFRS 16.

Right-of-use assets

Right-of-use assets are initially recognized at cost, which is comprised of the amount of the initial measurement of the corresponding lease liabilities, adjusted for any lease payments made at or prior to the commencement date of the lease, lease incentives received and initial direct costs incurred, as well as any expected costs for obligations to dismantle and remove right-of-use assets when they are no longer used.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the useful life of the right-of-use asset or the lease term.

Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life.

Lease liabilities

Lease liabilities are accounted for at amortized cost and are initially measured at the present value of future lease payments and are classified as current or non-current based on the due dates of the underlying principal payments. In determining the lease term, Alcon evaluates the renewal options and termination options reasonably certain to be exercised. Lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the incremental borrowing rate Alcon would be expected to pay within the respective markets, on a borrowing with a similar term and security. Interest in the period is recorded within "Interest expense" in the Consolidated Income Statement.

Lease liabilities are remeasured for changes in estimated lease term, future lease payments arising from a change in an index or rate, amounts expected to be payable under a residual value guarantee, or in assessment of whether Alcon will exercise a purchase, extension or termination option. Changes to initial lease contract terms are assessed to determine their impact on the scope of lease, and any modifications increasing the scope of the lease are treated as new contracts under the initial measurement principles, while modifications that do not increase or that decrease the scope of the lease result in an adjustment to the right-of-use asset which is remeasured as of the date of the modification.

Principal payments made on lease liabilities and any initial direct costs paid are classified as financing cash outflows, while interest payments are classified as operating cash outflows.

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the Consolidated Income Statement and are classified as cash flows from operating activities.

Legal liabilities

Alcon is subject to contingencies arising in the ordinary course of business such as patent litigation and other product-related litigation, commercial litigation, and governmental investigations and proceedings. Provisions are recorded where a reliable estimate can be made of the probable outcome of legal or other disputes.

Contingent consideration

In a business combination, it is necessary to recognize contingent future payments to previous owners representing contractually defined potential amounts to be paid as a liability. Usually for Alcon, these are linked to development or commercial milestones related to certain assets and are recognized as a financial liability at their fair value, which is then re-measured at each subsequent reporting date.

For the determination of the fair value of a contingent consideration, various unobservable inputs are used. A change in these inputs might result in a significantly higher or lower fair value measurement. The inputs used are, among others, the timing and probability of regulatory and commercial success, sales forecast and assumptions regarding the discount rate, timing and different scenarios of triggering events. The significance and usage of these inputs to each contingent consideration may vary due to differences in the timing and triggering events for payments or in the nature of the asset related to the contingent consideration. These estimates typically depend on factors such as technical milestones or market performance and are adjusted for the probability of their likelihood of payment, and if material, appropriately discounted to reflect the impact of time.

Changes in the fair value of contingent consideration liabilities in subsequent periods are recognized in the Consolidated Income Statement in "Cost of net sales" for currently marketed products and in "Research & development" for IPR&D.

The effect of unwinding the discount over time is recognized in "Interest expense" in the Consolidated Income Statement.

Alcon accounts for variable or contingent consideration associated with asset acquisitions using the cost accumulation model. At the date of the asset acquisition, the intangible asset is initially recognized at the amount paid. Variable payments are subsequently capitalized as part of the cost of the asset when paid, on the basis that such payments represent the direct cost of acquisition.

Defined benefit pension plans and other post-employment benefits

The liability or asset recognized in the balance sheet in respect of defined benefit pension plans and other post-employment benefits is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit ("PUC") method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating the terms of the related obligation. In countries where there is no sufficient market for such bonds, the market rates on government bonds are used.

The current service cost for such post-employment benefit plans is included in the personnel expenses of the various functions where the associates are employed. The net interest on the net defined benefit liability is recognized as "Other expense" or "Other income". The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Past service cost is recognized as "Other expense" or "Other income" in the Consolidated Income Statement for the change in the present value of a defined benefit obligation for employee service in prior periods resulting from a plan amendment or a curtailment.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income.

Defined contribution plans

For defined contribution plans, Alcon contributes to publicly or privately administered plans. Alcon has no further payment obligations once the contributions have been paid. The contributions are included in the personnel expenses of the various functions where the associates are employed.

Financial debts

Financial debts are initially recognized at fair value, net of transaction costs incurred. Financial debts are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs and discounts) and the redemption amount is recognized in the Consolidated Income Statement over the period of the financial debts using the effective interest method. Fees paid on the establishment of credit facilities are recognized as transaction costs of the financial debt to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates, and is recognized in "Other financial income & expense" in the Consolidated Income Statement.

Financial debts are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial debt that has been extinguished and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in "Other financial income & expense" in the Consolidated Income Statement.

Interest paid on financial debts is classified as operating activities in the Consolidated Statement of Cash Flows. Proceeds and repayments of borrowings with due dates of three months or less are presented net as financing activities in the Consolidated Statement of Cash Flows.

On January 1, 2024, Alcon adopted Amendments to International Accounting Standards 1 ("IAS 1"), Presentation of Financial Statements, which clarified the criteria used in determining the classification on the balance sheet of a liability as non-current where an entity has the right to postpone settlement of the liability for at least twelve months after the reporting date. Under IAS 1, financial debts are classified as current liabilities unless Alcon has a right to defer the settlement of the liability for at least twelve months after the reporting period.

Revenue

Net sales

Revenue on the sale of Alcon products and services, which is recorded as "Net sales" in the Consolidated Income Statement, is recognized when a contractual promise to a customer (i.e., a performance obligation) has been fulfilled by transferring control over the promised goods and services to the customer, substantially all of which is at the point in time of shipment to or receipt of the products by the customer or when the services are performed. If contracts contain customer acceptance provisions, revenue would be recognized upon the satisfaction of acceptance criteria. The amount of revenue to be recognized is based on the consideration Alcon expects to receive in exchange for its goods and services. If a contract contains more than one performance obligation, the consideration is allocated based on the relative stand-alone selling price of each performance obligation.

Surgical equipment may be sold together with other products and services under a single contract and may be structured as an outright cash sale, an installment sale, or a lease. Surgical equipment installment sales and leases have a fixed payment amount which the customer may pay either in fixed intervals or as the customer purchases consumables and/or implantables. Revenues are recognized upon satisfaction of each of the performance obligations in the contract and the consideration is allocated based on the relative stand-alone selling price of each performance obligation.

•Surgical equipment revenue from outright cash sales and installment sales arrangements is recognized at the point in time when control is transferred to the customer. The current portion of long-term receivables from customers and long-term receivables from customers for installment sales arrangements are recorded in "Other current assets" (see "Current portion of long-term receivables from customers" in Note 14) and "Financial assets" (see "Long-term receivables from customers" in Note 11), respectively. Financing income for installment sales arrangements longer than twelve months is recognized over the term of the arrangement in "Other income". Alcon applies the practical expedient under IFRS 15 to installment sales arrangements that are twelve months or less in duration.

•In addition to cash and installment sales, revenue is recognized under finance and operating lease arrangements. Leases in which Alcon transfers substantially all the risks and rewards incidental to ownership to the customer are treated as finance lease arrangements. Revenue from finance lease arrangements is recognized at amounts equal to the fair value of the equipment, which approximates the present value of the minimum lease payments under the arrangements. As interest rates embedded in lease arrangements are approximately market rates, revenue under finance lease arrangements is comparable to revenue for outright sales. Finance income for arrangements longer than twelve months is deferred and subsequently recognized based on a pattern that approximates the use of the effective interest method and recorded in "Other income". Operating lease revenue for equipment rentals is recognized on a straight-line basis over the lease term in "Net sales".

The consideration Alcon receives in exchange for its goods or services may be fixed or variable. Variable consideration is only recognized when it is highly probable that a significant reversal of cumulative sales will not occur. The most common elements of variable consideration are listed below:

•Rebates and discounts granted to government agencies, wholesalers, retail pharmacies, managed health-care organizations and other customers, estimated payments for Medicare prescription drug program under the Inflation Reduction Act, patient co-pay program coupon utilization, as well as chargebacks are provisioned and recorded as a deduction from revenue at the time the related revenues are recorded or when the incentives are offered. They are calculated based on historical experience, regulations, the specific terms in the individual agreements, product pricing, channels and payors.

•Cash discounts are offered to customers to encourage prompt payment and are provisioned and recorded as revenue deductions at the time the related sales are recorded.

•Sales returns provisions are recognized and recorded as revenue deductions when there is historical experience of Alcon agreeing to customer returns and Alcon can reasonably estimate expected future returns. In doing so, the estimated rate of return is applied, determined based on historical experience of customer returns and considering any other relevant factors. This is applied to the amounts invoiced. Where shipments are made on a re-sale or return basis, without sufficient historical experience for estimating sales returns, revenue is only recorded when there is evidence of consumption or when the right of return has expired.

Provisions for revenue deductions are adjusted to actual amounts as rebates, discounts, chargebacks, payment for Medicare prescription drug program under the Inflation Reduction Act, patient co-pay program coupon utilization and returns are processed. The provision represents estimates of the related obligations, requiring the use of judgment when estimating the effect of these sales deductions.

Other revenues

"Other revenues" include revenue from contract manufacturing services which are recognized over time as the service obligations are completed and third-party royalty income. Associated costs for contract manufacturing services are recognized in "Cost of other revenues".

Research & development

Internal research & development ("R&D") costs are fully charged to "Research & development" in the Consolidated Income Statement in the period in which they are incurred. Alcon considers that regulatory and other uncertainties inherent in the development of new products preclude the capitalization of internal development expenses as an intangible asset until marketing approval from a regulatory authority is obtained in a major market such as the United States, the European Union, Switzerland, China or Japan.

Payments made to third parties to in-license or acquire intellectual property rights and products, including initial upfront and subsequent milestone payments, are capitalized as intangible assets. If additional payments are made to the originator company to continue to perform R&D activities, an evaluation is made as to the nature of the payments. Such additional payments will be expensed if they are deemed to be compensation for subcontracted R&D services not resulting in an additional transfer of intellectual property rights to Alcon. Such additional payments will be capitalized if they are deemed to be compensation for the transfer to Alcon of additional intellectual property developed at the risk of the originator company. Subsequent internal R&D costs in relation to IPR&D and other assets are expensed until such time that technical feasibility can be proven, as demonstrated by the receipt of marketing approval for the related product from a regulatory authority in a major market.

Equity-based compensation

Each of the periods presented include expense related to incentive compensation provided to eligible Alcon associates in the form of equity-settled or equity-based awards including restricted stock units ("RSUs") and performance stock units ("PSUs").

Alcon expenses the fair values of RSUs and PSUs granted to associates as compensation over the related vesting periods within the various functions where the associates are employed. The fair values of the awards are determined on their grant dates and are adjusted to account for the specific provisions of each of the corresponding grant agreements.

Alcon RSUs do not entitle the recipients to dividends. As such, the fair value upon grant is based on the Alcon share price at the grant date adjusted for potential future dividends to be paid within the holding period. The fair value of these grants, after making adjustments for assumptions related to their forfeiture during the vesting period, is expensed on a straight-line basis over the respective vesting period.

PSUs are subject to certain performance criteria being achieved during the vesting period and require plan participants to provide services during the vesting period. PSUs granted under Alcon's plans are subject to performance criteria based on internal performance metrics. The expense is determined taking into account assumptions concerning performance during the period relative to targets and expected forfeitures due to plan participants not meeting their service conditions. These assumptions are periodically adjusted. Any change in estimates for past services is recorded immediately as an expense or income in the Consolidated Income Statement and amounts for future periods are expensed over the remaining vesting period. As a result, at the end of the vesting period, the total charge during the whole vesting period represents the amount that will finally vest. The number of equity instruments that finally vest is determined at the vesting date.

If a plan participant leaves Alcon for reasons other than retirement, disability or death, then unvested restricted shares, RSUs and PSUs are forfeited, unless determined otherwise by the provision of the plan rules or by the Compensation Committee of the Company's Board of Directors, for example, in connection with a reorganization.

Restructuring charges

Restructuring provisions are recognized for the direct expenditures arising from the restructuring, where the plans are sufficiently detailed and where appropriate communication to those affected has been made.

Charges to increase restructuring provisions are included in "Other expense" in the Consolidated Income Statement. Corresponding releases are recorded in "Other income" in the Consolidated Income Statement.

Taxes

Taxes on income are expensed in the same periods as the revenues and expenses to which they relate and include any interest and penalties incurred during the period. Deferred taxes are determined using the comprehensive liability method and are calculated on the temporary differences that arise between the tax basis of an asset or liability and its carrying value in the balance sheet prepared for purposes of these Consolidated Financial Statements, except for those temporary differences related to investments in subsidiaries where the timing of their reversal can be controlled and it is probable that the difference will not reverse in the foreseeable future. Alcon recognizes deferred taxes for a new temporary difference where there are previously unrecognized temporary differences, instead of adjusting the amount of those unrecognized differences, for changes in the underlying economics where the initial recognition exemption applies. Since the retained earnings are reinvested, withholding or other taxes on eventual distribution of a subsidiary's retained earnings are only taken into account when a dividend has been planned.

The estimated amounts for current and deferred tax assets or liabilities, including any amounts related to any uncertain tax positions, are based on currently known facts and circumstances. Tax returns are based on an interpretation of tax laws and regulations and reflect estimates based on these judgments and interpretations. The tax returns are subject to examination by the competent taxing authorities which may result in an assessment being made requiring payments of additional tax, interest or penalties. Inherent uncertainties exist in the estimates of the tax positions.

The Organization for Economic Cooperation and Development (“OECD") has published Global Anti-Base Erosion (“GloBE”) Model Rules, which include a minimum 15% tax rate by jurisdiction ("Pillar Two"). For the periods ended December 31, 2025, 2024, and 2023, we have applied the IASB amendment to IAS 12, Income Taxes, which provides a mandatory temporary exception from recognizing or disclosing deferred taxes related to Pillar Two.

Earnings per share

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding.

New standards and interpretations not yet adopted

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, which will replace IAS 1, Presentation of Financial Statements and accompanies limited amendments to other standards which will be effective upon the adoption of the new standard. IFRS 18 will be retroactively effective for our annual reporting periods beginning on January 1, 2027, with early adoption permitted. The standard is expected to improve comparability and transparency of financial statements by requiring defined subtotals in the Consolidated Income Statement, requiring disclosure of management-defined performance measures and adding new principles for aggregation and disaggregation of information. IFRS 18 will not impact recognition or measurement of the financial statement items. However, it may impact operating income due to the reclassification of certain income and expense items within the income statement. Additionally, it may also change the disclosure of operating activities, investing activities and financing activities within the statement of cash flows due to the change in classification of certain cash flow items. Alcon is currently evaluating the impact of adopting this standard on its Consolidated Financial Statements.

Other than previously described, as of December 31, 2025, there are no IFRS Accounting Standards, interpretations or amendments not yet effective that would be expected to have a material impact on Alcon upon adoption.

Significant transactions	12 Months Ended
Significant transactions	Dec. 31, 2025
Significant Transactions [Abstract]
Significant transactions	Significant transactions Significant transactions in 2025 Surgical - Acquisition of LumiThera, Inc. On September 2, 2025, Alcon closed on a merger agreement and acquired the remaining outstanding equity of LumiThera Inc. ("LumiThera"), resulting in 100% ownership when combined with Alcon's existing investment in LumiThera. LumiThera is a privately held, US-based company that developed and commercializes the Valeda photobiomodulation device, a multi-wavelength treatment for dry age-related macular degeneration, which supplements Alcon's Surgical portfolio. The acquisition of the equity interest was accounted for as a business combination that resulted in goodwill of $38 million after the updated preliminary purchase price allocation ("PPA") of the consideration to the fair values of acquired assets and assumed liabilities. The fair value of the assets acquired and liabilities assumed for the acquisition were based on preliminary calculations and valuations, and are subject to change as additional information is obtained during the respective measurement period up to one year from the acquisition date. Total cash paid at closing, net of cash acquired, was $124 million. Refer to Note 21.1 for additional information and preliminary PPA. Vision Care - Acquisition of majority interest in Aurion Biotech, Inc. On March 24, 2025, Alcon closed on agreements with certain existing shareholders of Aurion Biotech, Inc. ("Aurion") to acquire approximately 58.7% of outstanding equity for approximately $486 million and outstanding convertible notes from the same shareholders for approximately $36 million, totaling $522 million cash paid at closing. When combined with Alcon's existing 40.3% investment in Aurion, the transaction resulted in 99% ownership of Aurion on an outstanding basis. Aurion's ownership on a fully diluted basis at closing was approximately 85.0% held by Alcon and 15.0% held by non-controlling interests. This transaction supports Alcon's ophthalmic pharmaceutical portfolio expansion, including biopharmaceutical applications, with the potential to advance the first-ever corneal cell therapy candidate. The acquisition of majority interest was accounted for as a business combination that resulted in goodwill of $175 million after the final PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing, net of cash acquired, was $496 million. The PPA was finalized in the fourth quarter of 2025. Refer to Note 21.1 for additional information, including the final PPA and details related to the associated non-controlling interests. Surgical - Acquisition of Cylite Pty Ltd. On January 16, 2025, Alcon executed a stock purchase agreement and acquired approximately 91.2% of outstanding equity from Cylite Pty Ltd. ("Cylite") shareholders, resulting in 100% ownership when combined with Alcon's existing 8.8% investment in Cylite. The Cylite diagnostic device complements Alcon’s existing Surgical portfolio for cataracts. The acquisition of the remaining equity interest was accounted for as a business combination that resulted in goodwill of $90 million after the final PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing, net of cash acquired, was $72 million. The PPA was finalized in the fourth quarter of 2025. Refer to Note 21.1 for additional information and final PPA. Significant transactions in 2024 Divestment of product rights and out-licensing in China On October 17, 2024, Alcon closed on a set of definitive agreements to divest its rights in China in favor of Ocumension Therapeutics (Hong Kong) Limited (“Ocumension”) to Bion Tears and Tears Naturale (reported in Vision Care segment) and procedural eye drops (reported in Surgical segment). Under the terms of the agreements, Ocumension licensed the exclusive commercialization rights to Systane Ultra in China and development and commercialization rights to AR-15512 in China. In exchange, Alcon received up-front consideration of $116 million in the form of approximately 16.7% of the ordinary shares of Ocumension. Alcon will also receive royalties and defined AR-15512 sales milestones. Refer to Note 21.3 for additional information. Surgical - Acquisition of BELKIN Vision Ltd. On July 1, 2024, Alcon acquired 100% of the outstanding shares and equity of BELKIN Vision Ltd. ("BELKIN") as provided under the Agreement and Plan of Merger ("BELKIN Agreement"). This transaction complements Alcon’s existing Surgical portfolio in the treatment of glaucoma. The acquisition was accounted for as a business combination that resulted in goodwill of $20 million after the PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing for the net identifiable assets recognized, net of cash acquired, was $61 million. Refer to Note 21.1 for additional information and final PPA. Significant transactions in 2023 There were no significant transactions during 2023.

Segment information

12 Months Ended

Dec. 31, 2025

Operating Segments [Abstract]

Segment information

The segment information disclosed in these Consolidated Financial Statements reflects historical results consistent with the identifiable reportable segments of Alcon and financial information that the Chief Operating Decision Maker ("CODM") reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Executive Committee of Alcon.

The businesses of Alcon are divided operationally on a worldwide basis into two identified reportable segments, Surgical and Vision Care. Alcon's reportable segments are the same as its operating segments as Alcon does not aggregate any operating segments in arriving at its reportable segments. As indicated below, certain income and expenses are not allocated to segments.

Reportable segments are presented in a manner consistent with the internal reporting to the CODM. The reportable segments are managed separately due to their distinct needs and activities for research, development, manufacturing, distribution and commercial execution.

The Executive Committee of Alcon is responsible for allocating resources and assessing the performance of the reportable segments.

In Surgical, Alcon researches, develops, manufactures, distributes and sells ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. The surgical portfolio also includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end procedure needs of the ophthalmic surgeon.

In Vision Care, Alcon researches, develops, manufactures, distributes and sells daily disposable, reusable, and color-enhancing contact lenses, cell therapies to treat ocular diseases and a comprehensive portfolio of ocular health products, including products for dry eye, ocular allergies, glaucoma and contact lens care, as well as ocular vitamins and redness relievers.

Alcon also provides services, training, education and technical support for both the Surgical and Vision Care businesses.

The basis of preparation and the selected accounting policies mentioned in Note 2 are used in the reporting of segment results.

The Executive Committee of Alcon evaluates segmental performance and allocates resources among the segments based on net sales and segment contribution, which is the single measure of segment profitability.

Net identifiable assets are not assigned to the segments in the internal reporting to the CODM, and are not considered in evaluating the performance of the business segments by the Executive Committee of Alcon.

Segment contribution excludes amortization and impairment charges for acquired product rights or other intangibles, general and administrative expenses for corporate activities, transformation costs, fair value adjustments to contingent consideration liabilities, past service costs primarily for post-employment benefit plan amendments, acquisition and integration related costs, certain acquisition and divestment related items, product discontinuation costs, fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, net gains and losses on fund investments and equity securities valued at FVPL, fair value remeasurements of investments in associated companies, restructuring costs, legal provisions and settlements and other income and expense items not attributed to a specific segment.

Net sales and other revenues by segment


($ millions)	2025	2024	2023
Surgical
Implantables	1,782	1,775	1,703
Consumables	3,028	2,861	2,719
Equipment/other	941	886	892
Total Surgical net sales	5,751	5,522	5,314
Vision Care
Contact lenses	2,770	2,609	2,400
Ocular health	1,798	1,705	1,656
Total Vision Care net sales	4,568	4,314	4,056
Total net sales	10,319	9,836	9,370
Surgical other revenues	3	4	—
Vision Care other revenues	79	71	85
Total other revenues	82	75	85
Total net sales and other revenues	10,401	9,911	9,455

Segment contribution and reconciliation to income before taxes

The below table summarizes segment contribution, including material items of income and expense as required by IFRS 8, Operating Segments, and the associated International Financial Reporting Interpretations Committee agenda decision published in July 2024. The below table also includes a reconciliation of segment contribution to Income before taxes.


	Surgical			Vision Care			Not allocated to segments			Total
($ millions)	2025	2024	2023	2025	2024	2023	2025	2024	2023	2025	2024	2023
Net sales	5,751	5,522	5,314	4,568	4,314	4,056	—	—	—	10,319	9,836	9,370
Other revenues	3	4	—	79	71	85	—	—	—	82	75	85

Cost of net sales	(2,167)	(2,014)	(1,898)	(1,649)	(1,605)	(1,535)	(776)	(709)	(708)	(4,592)	(4,328)	(4,141)
Cost of other revenues	(3)	(4)	—	(61)	(67)	(67)	—	—	—	(64)	(71)	(67)

Selling, general & administration	(1,527)	(1,461)	(1,435)	(1,587)	(1,467)	(1,473)	(335)	(322)	(301)	(3,449)	(3,250)	(3,209)
Research & development	(597)	(580)	(527)	(369)	(284)	(289)	(24)	(12)	(12)	(990)	(876)	(828)


Other income	—	—	—	—	—	—	169	77	80	169	77	80
Other expense	—	—	—	—	—	—	(115)	(50)	(251)	(115)	(50)	(251)
Segment contribution and Operating income	1,460	1,467	1,454	981	962	777	(1,081)	(1,016)	(1,192)	1,360	1,413	1,039
Interest expense							(204)	(192)	(189)	(204)	(192)	(189)
Other financial income & expense							22	43	(18)	22	43	(18)
Share of (loss) from associated companies							(18)	(8)	—	(18)	(8)	—
Income before taxes										1,160	1,256	832

Included in segment contribution are:


($ millions)	2025	2024	2023
Depreciation of property, plant & equipment:
Surgical	(163)	(147)	(144)
Vision Care	(250)	(241)	(237)
Not allocated to segments	(4)	(4)	(4)
Total depreciation of property, plant & equipment	(417)	(392)	(385)

Depreciation of right-of-use assets:
Surgical	(52)	(50)	(49)
Vision Care	(36)	(33)	(42)
Not allocated to segments	(1)	—	—
Total depreciation of right-of-use assets	(89)	(83)	(91)

Impairment charges on property, plant & equipment, net:
Surgical	—	(1)	—

Total impairment charges on property, plant & equipment, net	—	(1)	—

Equity-based compensation:
Surgical	(81)	(81)	(78)
Vision Care	(68)	(58)	(64)
Not allocated to segments	(22)	(23)	(17)
Total equity-based compensation	(171)	(162)	(159)

Geographical information

The below table shows the United States, International and countries that accounted for more than 5% of at least one of the respective Alcon totals, for net sales for the years ended December 31, 2025, 2024 and 2023, and for selected non-current assets at December 31, 2025 and 2024.


	Net sales(2)									Total of selected non-current assets(3)
($ millions unless indicated otherwise)(1)	2025			2024			2023			2025			2024

Country
United States	4,657	45	%	4,511	46	%	4,312	46	%	12,454	53	%	11,380	51	%
International	5,662	55	%	5,325	54	%	5,058	54	%	11,029	47	%	10,991	49	%
thereof:
Switzerland (country of domicile)	71	1	%	79	1	%	64	1	%	8,452	36	%	8,800	39	%
Japan	609	6	%	554	6	%	583	6	%	33	—	%	28	—	%
China	570	6	%	560	6	%	526	6	%	19	—	%	21	—	%
Other	4,412	43	%	4,132	42	%	3,885	41	%	2,525	11	%	2,142	10	%
Company total	10,319	100	%	9,836	100	%	9,370	100	%	23,483	100	%	22,371	100	%

(1)International percentages may not sum due to rounding.

(2)Net sales by location of third-party customer.

(3)Includes property, plant & equipment, right-of-use assets, goodwill and other intangible assets.

No customer accounted for 10% or more of Alcon's net sales.

Interest expense and other financial income & expense

12 Months Ended

Dec. 31, 2025

Analysis of income and expense [abstract]

Interest expense and other financial income & expense

Interest expense


($ millions)	2025	2024	2023
Interest expense on financial debts	(169)	(165)	(162)
Interest expense from discounting long-term liabilities	(12)	(8)	(10)
Interest expense on lease liabilities	(23)	(19)	(17)
Total interest expense	(204)	(192)	(189)

Other financial income & expense


($ millions)	2025	2024	2023
Interest income	74	84	45

Other financial expense	(12)	(12)	(11)
Monetary (loss)/gain from hyperinflation accounting	(2)	1	(13)
Currency result, net	(38)	(30)	(39)
Total other financial income & expense	22	43	(18)

Taxes

12 Months Ended

Dec. 31, 2025

Income Taxes [Abstract]

Taxes

Income before taxes


($ millions)	2025	2024	2023
Switzerland	604	493	359
Foreign	556	763	473
Total income before taxes	1,160	1,256	832

Current and deferred income taxes


($ millions)	2025	2024	2023
Switzerland	(80)	(95)	(74)
Foreign	(106)	(239)	(93)
Current income tax (expense)	(186)	(334)	(167)
Switzerland	25	25	313
Foreign	(19)	71	(4)
Deferred tax income	6	96	309
Total income tax (expense)/income	(180)	(238)	142

Analysis of tax rate

Alcon's overall applicable tax rate can change each year since it is calculated as the weighted average tax rate based on pre-tax income/(loss) of each subsidiary. The main elements contributing to the difference between Alcon's overall applicable tax rate and the effective tax rate are summarized in the below table.


	2025			2024			2023
($ millions unless indicated otherwise)(1)		%			%			%
Applicable tax rate	(217)	18.7	%	(256)	20.4	%	(168)	20.2	%
Effect of disallowed expenditures	(16)	1.4	%	(4)	0.3	%	(7)	0.8	%
Effect of gain on the fair value remeasurement of an investment in an associated company	28	(2.4)	%	—	—	%	—	—	%
Effect of deemed legal entity liquidation	—	—	%	57	(4.5)	%	—	—	%
Effect of equity-based compensation	(1)	0.1	%	(2)	0.2	%	(3)	0.4	%

Effect of tax credits and allowances	27	(2.3)	%	18	(1.4)	%	12	(1.4)	%
Effect of deductibility of a statutory expense in Switzerland(2)	—	—	%	—	—	%	568	(68.3)	%
Effect of adjustments to contingent consideration and other liabilities	—	—	%	—	—	%	2	(0.2)	%


Effect of changes in uncertain tax positions(3)	3	(0.3)	%	(43)	3.4	%	(271)	32.6	%
Effect of previously (recognized)/unrecognized tax loss carryforward	(7)	0.6	%	12	(1.0)	%	11	(1.3)	%
Effect of 2022 APA on prior years	—	—	%	—	—	%	6	(0.7)	%
Effect of non-deductible amortization	(6)	0.5	%	(9)	0.7	%	(8)	1.0	%
Effect of other items	4	(0.3)	%	(10)	0.8	%	(6)	0.7	%
Effect of prior year items	5	(0.4)	%	(1)	0.1	%	6	(0.7)	%
Effective tax rate	(180)	15.5	%	(238)	18.9	%	142	(17.1)	%

(1)Percentages may not sum due to rounding.

(2)2023 includes a long-term Swiss Tax Agreement; however, it is uncertain whether Alcon will obtain a similar treatment for future years for a portion of the benefit.

(3)Includes the net effect of partial reserves and benefits recognized for the deductibility of statutory expenses in Switzerland. 2024 also includes reserves for the deemed liquidation of a legal entity. 2023 also includes the release of reserves in US and Germany following the conclusion of tax audits and other items.

Alcon has a substantial business presence in many countries and is therefore subject to different income and expense items that are non-taxable (permanent differences) or are taxed at different rates in those tax jurisdictions. This results in a difference between Alcon's applicable tax rate and effective tax rate as shown in the table above.

Fluctuations in taxes and effective tax rates are primarily due to the geographical pre-tax income and loss mix across certain tax jurisdictions relative to Alcon's consolidated income before taxes, changes in uncertain tax positions and certain non-recurring items.

The applicable tax rate was 18.7% in 2025 compared to 20.4% in 2024, primarily due to the mix of pre-tax income/(loss) across geographical jurisdictions. The effective tax rate was 15.5% in 2025 compared to 18.9% in 2024, primarily due to the non-taxable gain on the fair value remeasurement of an investment in an associated company and higher discrete tax benefits in the current year.

The applicable tax rate was 20.4% in 2024 compared to 20.2% in 2023, primarily due to the mix of pre-tax income/(loss) across geographical jurisdictions. The effective tax rate was a 17.1% benefit in 2023 primarily driven by a $263 million net benefit associated with the 2023 Swiss Tax Agreement (as defined below) and a net benefit of $36 million from other discrete tax items.

Tax returns are subject to examination by competent taxing authorities, which may result in assessments being made requiring payments of additional tax, interest or penalties. Inherent uncertainties exist in the estimates of the tax positions.

Federal legislation

On July 4, 2025, the United States Congress enacted budget reconciliation bill H.R. 1, which includes significant provisions such as the permanent extension of certain provisions of the Tax Cuts and Jobs Act that were set to expire. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. The enactment of H.R. 1 did not materially impact Alcon's Consolidated Financial Statements for the year ended December 31, 2025.

Alcon continues to evaluate the potential future impact of the tax law changes on our Consolidated Financial Statements, but does not expect H.R. 1 to have a material impact to the effective tax rate. The enactment of H.R. 1 resulted in a reduction in cash tax payment obligations in 2025 driven by timing of deductions.

2023 Swiss Tax Agreement

In 2023, Alcon entered into a long-term agreement with Switzerland tax authorities related to the deductibility of a statutory expense in Switzerland through March 31, 2039 (the "2023 Swiss Tax Agreement"). As a result, in 2023 Alcon recorded a discrete tax benefit of $263 million in "Taxes" in the Consolidated Income Statement and corresponding deferred tax asset, net of reserves.

Pillar Two income taxes

The OECD has published GloBE Model Rules, which include a minimum 15% tax rate by jurisdiction ("Pillar Two"). Various countries have enacted or intend to enact tax legislation to comply with Pillar Two rules. Alcon is within the scope of the OECD’s Pillar Two, which has implications for Alcon’s financial results starting January 1, 2024 onward.

Of the countries that have enacted, or will be enacting Pillar Two legislation, we expect Switzerland to be the most impactful to Alcon. In December 2023, the Swiss government decided to partially implement Pillar Two by introducing a Qualified Domestic Minimum Top-up Tax (“QDMTT”) to reach the required taxation level of 15% on Pillar Two qualifying profits earned by companies domiciled in Switzerland effective from January 1, 2024. This QDMTT will not be applied to the Pillar Two qualifying profits earned by subsidiaries domiciled in tax jurisdictions outside of Switzerland. The implementation timing and specific provisions of any further Pillar Two tax regulations in Switzerland remain subject to further assessments at both the Federal and Cantonal levels. In September 2024, the Swiss government introduced the Income Inclusion Rule ("IIR") effective beginning January 1, 2025. Under the IIR, Switzerland will tax the Pillar Two-qualifying profit of foreign subsidiaries in case and to the extent the taxation in those countries does not reach the required taxation level of 15%. On January 15, 2025, the OECD issued administrative guidance related to the treatment of certain deferred taxes to streamline the administration of Pillar Two. This administrative guidance did not impact Alcon's 2025 Consolidated Financial Statements.

For the years ended December 31, 2025 and 2024, we have applied the IASB amendment to IAS 12, Income Taxes, which provides a mandatory temporary exception from recognizing or disclosing deferred taxes related to Pillar Two. Further, Alcon's effective tax rates in the relevant jurisdictions met the minimum 15% taxation level in the current year. We do not expect Pillar Two to have a material impact to the effective tax rate. Alcon is continuing to follow Pillar Two legislative developments to evaluate the potential future impact on our consolidated results of operations, financial position and cash flows.

Share capital, dividends, earnings per share and share repurchase program

12 Months Ended

Dec. 31, 2025

Earnings per share [abstract]

Share capital, dividends, earnings per share and share repurchase program

7.1 Share capital

The share capital of the Company as of December 31, 2025 is CHF 20 million, which is comprised of 499.7 million registered shares, nominal value of CHF 0.04 per share.

The below table shows the movement in the shares.


(shares in millions)(1)	Common stock shares outstanding	Treasury stock shares	Total shares
January 1, 2023	491.8	7.9	499.7


Settlement of equity-based awards	1.5	(1.5)	—
December 31, 2023	493.2	6.4	499.7

Settlement of equity-based awards	1.4	(1.4)	—
December 31, 2024	494.6	5.1	499.7
Settlement of equity-based awards	1.2	(1.2)	—
Acquisition of treasury shares	(8.4)	8.4	—
December 31, 2025	487.4	12.3	499.7

(1)Totals may not sum due to rounding.

All of the Company's 12.3 million shares held in treasury as of December 31, 2025 may only be used to fulfill the future vesting of existing and future equity-based awards.

Capital range and conditional share capital

On May 5, 2023, Alcon's shareholders approved the introduction of a capital range and a conditional share capital in Alcon's Articles of Incorporation. Under the capital range, and until May 5, 2028 or an earlier expiry, the Company's Board of Directors (the "Board") has the authority to increase or decrease the share capital ranging from CHF 19 million (lower limit) to CHF 22 million (upper limit). The capital increase or decrease may be effected by (A) issuing up to the lower of (i) 50 million fully paid-in registered shares and (ii) 10% of the share capital at the time of increase or (B) cancelling up to 25 million registered shares, as applicable. The Board is further authorized to withdraw or restrict subscription rights of existing shareholders and allocate such rights to third parties, the Company or any of its group companies, for the purposes of (a) raising equity capital, (b) acquisition transactions, (c) broadening the shareholders constituency in certain financial or investor markets or (d) Board, executive management, employees, advisors or other participation programs.

The Board can also rely on a conditional share capital instrument in its Articles of Incorporation through which the share capital may be increased in an amount not to exceed CHF 2.0 million, by the issuance of up to 50 million fully paid-in registered shares through the voluntary or mandatory exercise of conversion, exchange, option, warrant, subscription or other rights granted to or imposed on shareholders or third parties alone or in connection with the issuance of bonds, notes, options, warrants or other similar securities or contractual obligations of the Company or its affiliates. The conditional share capital may be used for the same purposes as stated in the preceding paragraph in connection with the capital range. As of December 31, 2025, the Board had not made use of the authority under any of the capital range or conditional share capital provisions.

7.2 Dividends

On February 25, 2025, the Board proposed a dividend of CHF 0.28 per share, which was subsequently approved by the shareholders at the Annual General Meeting on May 6, 2025 and paid in May 2025 for an amount of $166 million.

On February 27, 2024, the Board proposed a dividend of CHF 0.24 per share, which was subsequently approved by the shareholders at the Annual General Meeting on May 8, 2024 and paid in May 2024 for an amount of $130 million.

On February 27, 2023, the Board proposed a dividend of CHF 0.21 per share, which was subsequently approved by the shareholders at the Annual General Meeting on May 5, 2023 and paid in May 2023 for an amount of $116 million.

7.3 Earnings per share

Basic earnings per share is computed by dividing net income attributable to the shareholders of Alcon Inc. for the period by the weighted average number of common shares outstanding during the period. For the years ended December 31, 2025, 2024 and 2023, the weighted average number of shares outstanding was 493.2 million, 494.4 million and 493.0 million, respectively.

The only potentially dilutive securities are the outstanding unvested equity-based awards under the Company's equity-based incentive plans, as described in Note 23. Except when the effect would be anti-dilutive, the calculation of diluted earnings per common share includes the weighted average net impact of unvested equity-based awards. For the years ended December 31, 2025, 2024 and 2023, the weighted average diluted number of shares outstanding was 496.2 million, 497.5 million and 496.5 million, respectively, which includes the potential conversion of 3.0 million, 3.1 million and 3.5 million unvested equity-based awards, respectively.

The average market value of the Company's shares for the purposes of calculating the potentially dilutive effects of unvested equity-based awards was based on quoted market prices for the period that the unvested awards were outstanding.

7.4 Share repurchase program

On February 25, 2025, the Board authorized the repurchase of up to $750 million of the Company’s common shares. The shares acquired are held in treasury and are intended to offset the dilutive effect of shares vesting under Alcon's equity-based incentive plans. Alcon funded the repurchases through cash generated from operations. The program was authorized by the Swiss Takeover Board and subject to customary safe harbor conditions.

On March 27, 2025, the Company executed an agreement with a bank to set the terms on which the bank will execute the share repurchases as the Company's agent. The agreement with the bank is cancellable at any time without continuing obligation such that no financial liability exists to the Company from execution of the agreement or the approval of the program. As of December 31, 2025, 8.4 million shares were repurchased for a total consideration of $682 million. Total cash payments for acquisition of treasury shares of $676 million were recorded to "Payments for acquisition of treasury shares" within the financing section of the Consolidated Statement of Cash Flows. Liabilities of $6 million were recorded to "Provisions & other current liabilities" on the Consolidated Balance Sheet for share repurchases which were initiated but not settled as of December 31, 2025.

The share repurchase program was completed on January 20, 2026 with 9.3 million shares repurchased for a total of $750 million.

Property, plant & equipment

12 Months Ended

Dec. 31, 2025

Property, plant and equipment [abstract]

Property, plant & equipment

The below table summarizes the movements of property, plant & equipment in 2025.


($ millions)	Land	Buildings & improvements	Construction in progress	Machinery & other equipment	Total

Cost
January 1, 2025	39	2,339	940	4,270	7,588
Additions	3	46	421	167	637
Impact of business combinations	—	1	—	3	4
Disposals and derecognitions(1)	—	(13)	—	(126)	(139)
Reclassifications for assets placed in service	—	197	(414)	217	—

Currency translation effects	2	88	41	190	321
December 31, 2025	44	2,658	988	4,721	8,411

Accumulated depreciation
January 1, 2025	—	(1,029)	(1)	(2,169)	(3,199)
Depreciation charge	—	(112)	—	(305)	(417)

Disposals and derecognitions(1)	—	10	—	111	121

Currency translation effects	—	(38)	—	(104)	(142)
December 31, 2025	—	(1,169)	(1)	(2,467)	(3,637)
Net book value at December 31, 2025	44	1,489	987	2,254	4,774

(1)Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use.

As of December 31, 2025, commitments for purchases of property, plant & equipment were $276 million.

The below table summarizes the movements of property, plant & equipment in 2024.


($ millions)	Land	Buildings & improvements	Construction in progress	Machinery & other equipment	Total

Cost
January 1, 2024	38	2,294	1,023	3,989	7,344
Additions	2	20	368	128	518
Impact of business combinations	—	—	—	1	1
Disposals and derecognitions(1)	—	(20)	(4)	(107)	(131)
Reclassifications for assets placed in service	—	87	(421)	334	—

Currency translation effects	(1)	(42)	(26)	(75)	(144)
December 31, 2024	39	2,339	940	4,270	7,588

Accumulated depreciation
January 1, 2024	—	(952)	(2)	(2,021)	(2,975)
Depreciation charge	—	(111)	—	(281)	(392)
Impairment charges	—	—	—	(1)	(1)
Disposals and derecognitions(1)	—	16	—	99	115

Currency translation effects	—	18	1	35	54
December 31, 2024	—	(1,029)	(1)	(2,169)	(3,199)
Net book value at December 31, 2024	39	1,310	939	2,101	4,389

(1)Derecognition of assets that are no longer used and are not considered to have a significant disposal value or other alternative use.

As of December 31, 2024, commitments for purchases of property, plant & equipment were $221 million.

Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2025

Intangible Assets [Abstract]

Goodwill and other intangible assets

The below table summarizes the movements of goodwill and other intangible assets in 2025.


		Intangible assets other than goodwill
($ millions)	Goodwill	Alcon brand name	Acquired in-process research & development	Technologies	Currently marketed products	Marketing know-how	Other intangible assets (including software)	Total

Cost
January 1, 2025	8,946	2,980	963	5,348	6,229	5,960	896	22,376
Impact of business combinations	303	—	853	—	259	—	—	1,112

Additions	—	—	22	—	—	—	122	144
Reclassifications(1)	—	—	(268)	—	268	—	—	—
Disposals and derecognitions(2)	—	—	—	(4)	(3)	—	(53)	(60)
Currency translation effects	7	—	1	—	4	—	1	6
December 31, 2025	9,256	2,980	1,571	5,344	6,757	5,960	966	23,578

Accumulated amortization
January 1, 2025	—	—	(188)	(5,320)	(4,485)	(3,338)	(458)	(13,789)
Amortization charge	—	—	—	(22)	(402)	(238)	(122)	(784)
Disposals and derecognitions(2)	—	—	—	4	3	—	42	49
Impairment charges	—	—	(2)	—	(43)	—	—	(45)
Currency translation effects	—	—	—	—	(2)	—	(1)	(3)
December 31, 2025	—	—	(190)	(5,338)	(4,929)	(3,576)	(539)	(14,572)
Net book value at December 31, 2025	9,256	2,980	1,381	6	1,828	2,384	427	9,006

(1) Reclassifications between asset categories as a result of a project included in IPR&D that has been successfully developed.

(2) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. The current year period also includes previously-held commercialization rights in intangible assets derecognized as part of a business combination as described in Note 21.1.

The below table summarizes the allocation of the net book values of goodwill and other intangible assets by reportable segment at December 31, 2025.


		Intangible assets other than goodwill
($ millions)	Goodwill	Alcon brand name	Acquired in-process research & development	Technologies	Currently marketed products	Marketing know-how	Other intangible assets (including software)	Total
Surgical	4,700	—	555	6	749	2,384	261	3,955
Vision Care	4,556	—	826	—	1,079	—	166	2,071
Not allocated to segments	—	2,980	—	—	—	—	—	2,980
Net book value at December 31, 2025	9,256	2,980	1,381	6	1,828	2,384	427	9,006

The Surgical and Vision Care reportable segments' CGUs, to which goodwill is allocated, are comprised of a group of smaller CGUs. The valuation method of the recoverable amount of the CGUs, to which goodwill is allocated, is based on the FVLCOD.

The Alcon brand name is an intangible asset with an indefinite life. The intangible asset is not allocated to the reportable segments as it is used to market the Alcon-branded products of both the Surgical and Vision Care businesses. Net sales of these products together are the grouping of CGUs, which is used to determine the recoverable amount. The valuation method is based on the FVLCOD.

The following assumptions were used in the calculations for the recoverable amounts of goodwill and the Alcon brand name at December 31, 2025 and 2024:




(As a percentage)	Surgical	Vision Care
Terminal growth rate	3.0	3.0
Discount rate (post-tax)	8.5	8.0

The Surgical and Vision Care reportable segments' terminal growth rate assumption of 3.0% takes into consideration how the industry is expected to grow, analysis of industry expert reports, and expected relevant changes in demographics for various markets. The discount rates for both Surgical and Vision Care reportable segments consider Alcon's weighted average cost of capital, adjusted to approximate the weighted average cost of capital of comparable market participants. Both the terminal growth rates and the discount rates are consistent with external sources of information.

The FVLCOD, for all groupings of CGUs containing goodwill or indefinite life intangible assets, is reviewed for the impact of reasonably possible changes in key assumptions. In particular, Alcon considered an increase in the discount rate, a decrease in the terminal growth rate and certain negative impacts on the forecasted cash flows. These reasonably possible changes in key assumptions did not indicate an impairment.

Refer to "Impairment of goodwill, Alcon brand name and definite lived intangible assets" and "Acquired In-Process Research & Development ("IPR&D")" in Note 2 for additional disclosures on how Alcon performs goodwill and intangible assets impairment testing.

The below table summarizes the movements of goodwill and other intangible assets in 2024.


		Intangible assets other than goodwill
($ millions)	Goodwill	Alcon brand name	Acquired in-process research & development	Technologies	Currently marketed products	Marketing know-how	Other intangible assets (including software)	Total

Cost
January 1, 2024	8,926	2,980	918	5,369	6,204	5,960	810	22,241
Impact of business combinations	20	—	—	—	75	—	—	75

Additions	—	—	45	—	32	—	130	207

Disposals and derecognitions(1)	—	—	—	(21)	(82)	—	(44)	(147)
December 31, 2024	8,946	2,980	963	5,348	6,229	5,960	896	22,376

Accumulated amortization
January 1, 2024	—	—	(179)	(5,309)	(4,186)	(3,099)	(408)	(13,181)
Amortization charge	—	—	—	(32)	(378)	(239)	(94)	(743)
Disposals and derecognitions(1)	—	—	—	21	79	—	44	144
Impairment charges	—	—	(9)	—	—	—	—	(9)
December 31, 2024	—	—	(188)	(5,320)	(4,485)	(3,338)	(458)	(13,789)
Net book value at December 31, 2024	8,946	2,980	775	28	1,744	2,622	438	8,587

(1) Derecognitions of assets that are no longer used or being developed and are not considered to have a significant disposal value or other alternative use. 2024 also included currently marketed products divested as described in Note 21.3.

The below table summarizes the allocation of the net book values of goodwill and other intangible assets by reportable segment at December 31, 2024.


		Intangible assets other than goodwill
($ millions)	Goodwill	Alcon brand name	Acquired in-process research & development	Technologies	Currently marketed products	Marketing know-how	Other intangible assets (including software)	Total
Surgical	4,564	—	562	28	581	2,622	271	4,064
Vision Care	4,382	—	213	—	1,163	—	167	1,543
Not allocated to segments	—	2,980	—	—	—	—	—	2,980
Net book value at December 31, 2024	8,946	2,980	775	28	1,744	2,622	438	8,587

Intangible asset impairment charges

The below table shows the intangible asset impairment charges in 2025, 2024 and 2023.


($ millions)	2025	2024	2023
Surgical	—	(9)	—
Vision Care	(45)	—	—
Total	(45)	(9)	—

Impairment charges during the year ended December 31, 2025 amounted to $45 million, including $43 million recognized in "Cost of net sales" in the Consolidated Income Statement in the second quarter due to the full impairment of a currently marketed product CGU in the Vision Care reportable segment due to discontinuation of commercialization of the product; and $2 million recognized in "Research and development" in the Consolidated Income Statement in the third quarter due to the full impairment of an acquired IPR&D CGU in the Vision Care reportable segment due to discontinuation of the project.

Impairment charges during the year ended December 31, 2024 amounted to $9 million recognized in "Research & development" in the Consolidated Income Statement during the second quarter due to the full impairment of an acquired IPR&D CGU in the Surgical reportable segment due to discontinuation of the project.

There were no impairments during the year ended December 31, 2023.

The recoverable amounts were zero based on the net present value techniques at the time of impairment. The estimates used in calculating net present values involve significant judgment by management and include assumptions with measurement uncertainty. The estimates include cash flow projections for a five-year period based on management forecasts, sales forecasts beyond the five-year period extrapolated using long-term expected growth rates, discount rates and future tax rates. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using net present value techniques. Since the cash flow projections are a significant unobservable input, the fair value of the CGUs were classified as Level 3 in the fair value hierarchy.

Deferred tax assets and liabilities

12 Months Ended

Dec. 31, 2025

Income Taxes [Abstract]

Deferred tax assets and liabilities


($ millions)	Property, plant & equipment	Intangible assets and deductible goodwill	Pensions and other benefit obligations of associates	Inventories	Tax loss carry-forwards	Other assets, provisions and accruals	Total
Gross deferred tax assets at December 31, 2024	34	246	80	384	187	627	1,558
Gross deferred tax liabilities at December 31, 2024	(332)	(1,318)	—	(33)	—	(178)	(1,861)
Net deferred tax balance at December 31, 2024	(298)	(1,072)	80	351	187	449	(303)

At December 31, 2024	(298)	(1,072)	80	351	187	449	(303)
(Charged)/credited to income	(18)	93	2	21	(24)	(68)	6
Credited to equity	—	—	—	—	3	22	25
(Charged)/credited to other comprehensive income	(4)	(1)	(1)	2	1	—	(3)
Impact of business combinations	—	(257)	—	—	34	15	(208)

Net deferred tax balance at December 31, 2025	(320)	(1,237)	81	374	201	418	(483)

Gross deferred tax assets at December 31, 2025	39	229	81	410	201	584	1,544
Gross deferred tax liabilities at December 31, 2025	(359)	(1,466)	—	(36)	—	(166)	(2,027)
Net deferred tax balance at December 31, 2025	(320)	(1,237)	81	374	201	418	(483)

The below table presents the Net deferred tax balance as of December 31, 2025 after offsetting $1.1 billion of deferred tax assets and liabilities within the same tax jurisdiction.


($ millions)			At December 31, 2025
Deferred tax assets			458
Deferred tax liabilities			(941)
Net deferred tax liabilities			(483)


($ millions)	Property, plant & equipment	Intangible assets and deductible goodwill	Pensions and other benefit obligations of associates	Inventories	Tax loss carry-forwards	Other assets, provisions and accruals	Total
Gross deferred tax assets at December 31, 2023	39	267	85	377	194	618	1,580
Gross deferred tax liabilities at December 31, 2023	(337)	(1,417)	—	(30)	—	(150)	(1,934)
Net deferred tax balance at December 31, 2023	(298)	(1,150)	85	347	194	468	(354)

At December 31, 2023	(298)	(1,150)	85	347	194	468	(354)
(Charged)/credited to income	(1)	95	2	11	(15)	4	96
Credited to equity	—	—	—	—	2	5	7
Credited/(charged) to other comprehensive income	1	—	(7)	(7)	—	(28)	(41)
Impact of business combinations	—	(17)	—	—	6	—	(11)


Net deferred tax balance at December 31, 2024	(298)	(1,072)	80	351	187	449	(303)

Gross deferred tax assets at December 31, 2024	34	246	80	384	187	627	1,558
Gross deferred tax liabilities at December 31, 2024	(332)	(1,318)	—	(33)	—	(178)	(1,861)
Net deferred tax balance at December 31, 2024	(298)	(1,072)	80	351	187	449	(303)

The below table presents the Net deferred tax balance as of December 31, 2024 after offsetting $1.1 billion of deferred tax assets and liabilities within the same tax jurisdiction.


($ millions)			At December 31, 2024
Deferred tax assets			421
Deferred tax liabilities			(724)
Net deferred tax liabilities			(303)

The below table presents deferred tax assets and deferred tax liabilities expected to have an impact on current taxes payable after more than twelve months.


($ billions)	At December 31, 2025	At December 31, 2024
Deferred tax assets	1.1	1.2
Deferred tax liabilities	1.9	1.7

For foreign unremitted earnings retained by consolidated entities for reinvestment, which amounted to $10 billion as of December 31, 2025 and December 31, 2024, no provision is made for income taxes that would be payable upon the distribution of these earnings. If these earnings were remitted, an income tax charge could result based on the tax statutes currently in effect.

IFRS exceptions to recognizing taxable temporary differences include an exception to recognizing a deferred tax liability arising on the initial recognition of goodwill from acquisitions. As such, we have not provided a deferred tax for goodwill from acquisitions which amounted to $9.3 billion and $8.9 billion as of December 31, 2025 and 2024, respectively.

The gross value of capital loss carryforwards for which no deferred tax assets were recognized amounted to $82 million at December 31, 2025 ($83 million at December 31, 2024), most of which will expire in one year.

Tax loss carryforwards are capitalized as deferred tax assets to the extent it is probable that sufficient taxable income will be available for the foreseeable future. The below tables present the gross value of tax loss carryforwards that have or have not been recognized as deferred tax assets, with their expiry dates, as of December 31, 2025 and 2024.


($ millions)	Unrecognized	Recognized	Total at December 31, 2025
Within five years	17	50	67
More than five years	488	336	824
Not subject to expiry	48	822	870
Gross value of tax loss carryforwards	553	1,208	1,761


($ millions)	Unrecognized	Recognized	Total at December 31, 2024
Within five years	6	55	61
More than five years	443	375	818
Not subject to expiry	—	691	691
Gross value of tax loss carryforwards	449	1,121	1,570

No tax losses carried forward expired in 2025 and 2023. Tax losses carried forward of $1 million expired in 2024.

Financial and other non-current assets

12 Months Ended

Dec. 31, 2025

Subclassifications of assets, liabilities and equities [abstract]

Financial and other non-current assets

The below tables provide details related to Financial assets and Other non-current assets as of December 31, 2025 and 2024.

Financial assets


($ millions)	2025	2024
Long-term note receivable and other financial assets measured at amortized cost	191	175
Long-term financial investments measured at FVOCI(1)	328	282

Long-term financial investments measured at FVPL	4	1
Long-term receivables from customers	168	121
Non-current minimum lease payments from finance lease agreements	31	28

Long-term loans, advances and security deposits	46	45
Total financial assets	768	652

(1) Includes $11 million of Long-term convertible notes due from associated companies as of December 31, 2024. Refer to Note 24 for additional information.

Minimum lease payments from finance lease agreements

The below table shows the receivables of the gross investments in finance leases and the net present value of the minimum lease payments, as well as unearned finance income, related to surgical equipment lease arrangements. The finance income is recorded in "Other income".


	2025					2024
($ millions)	Total future payments	Unearned finance income	Present value	Provision	Net book value	Total future payments	Unearned finance income	Present value	Provision	Net book value
Not later than one year(1)	25	(1)	24	—	24	25	(2)	23	—	23
Between one and five years	35	(2)	33	(4)	29	36	(2)	34	(8)	26
Later than five years	2	—	2	—	2	2	—	2	—	2
Total	62	(3)	59	(4)	55	63	(4)	59	(8)	51

(1) The current portion of the minimum lease payments is recorded in Trade receivables or Other current assets (to the extent not yet invoiced).

Other non-current assets


($ millions)	Note	2025	2024
Deferred compensation plans		202	180
Prepaid post-employment benefit plans	22	7	6
Investments in associated companies	24	77	293
Other non-current assets		111	115
Total other non-current assets		397	594

Inventories

12 Months Ended

Dec. 31, 2025

Inventories [Abstract]

Inventories

The amount of inventory recognized as an expense in "Cost of net sales" in the Consolidated Income Statement during 2025 amounted to $3.2 billion (2024: $3.0 billion, 2023: $2.9 billion). The amount of inventory recognized as an expense in "Cost of other revenues" in the Consolidated Income Statement during 2025 amounted to $64 million (2024: $71 million, 2023: $67 million).


($ millions)	2025	2024
Raw material, consumables	476	438
Work in progress	190	199
Finished products	1,725	1,631
Total inventories	2,391	2,268

Alcon recognized inventory provisions and write-downs amounting to $206 million in 2025 (2024: $217 million, 2023: $206 million) and reversed inventory provisions amounting to $59 million in 2025 (2024: $64 million, 2023: $88 million). Inventory provisions mainly relate to the adjustment of inventory balances to their net realizable value based on the forecasted sales. Reversals are made when the products become salable.

Trade receivables

12 Months Ended

Dec. 31, 2025

Subclassifications of assets, liabilities and equities [abstract]

Trade receivables

Trade receivable balances include sales to wholesalers, retailers, doctor groups, private health systems, government agencies, pharmacy benefit managers, managed health-care organizations and government-supported healthcare systems. We closely monitor the level of trade receivables in the countries deemed to have an elevated credit risk. We consider macroeconomic and geopolitical environment, country profile and historical experience in addition to other relevant information when assessing the credit risk. Deteriorating credit risk factors may result in an increase in the average length of time that it takes to collect these trade receivables and may require Alcon to reevaluate the expected credit loss amount of these trade receivables in future periods or change the terms on which we operate. As of December 31, 2025, the amounts past due for more than one year in elevated credit risk countries are not significant.

The below tables provide details related to Trade receivables as of December 31, 2025 and 2024, including trade receivables that are not overdue as specified in the payment terms and conditions established with Alcon's customers, as well as an analysis of overdue amounts, expected credit loss rates and related provisions for doubtful trade receivables.


	2025
($ millions)	Gross trade receivables	Provision	Trade receivables, net	Expected credit loss rates
Not overdue	1,634	(2)	1,632	0.1	%
Past due for not more than one month	134	(1)	133	0.7	%
Past due for more than one month but less than three months	101	(2)	99	2.0	%
Past due for more than three months but less than six months	49	(3)	46	6.1	%
Past due for more than six months but less than one year	31	(13)	18	41.9	%
Past due for more than one year	43	(29)	14	67.4	%
Total	1,992	(50)	1,942


	2024
($ millions)	Gross trade receivables	Provision	Trade receivables, net	Expected credit loss rates
Not overdue	1,448	(2)	1,446	0.1	%
Past due for not more than one month	137	(1)	136	0.7	%
Past due for more than one month but less than three months	84	(2)	82	2.4	%
Past due for more than three months but less than six months	49	(3)	46	6.1	%
Past due for more than six months but less than one year	26	(10)	16	38.5	%
Past due for more than one year	33	(23)	10	69.7	%
Total	1,777	(41)	1,736

The below table summarizes the movement in the provision for doubtful trade receivables.


($ millions)	2025	2024	2023
January 1	(41)	(44)	(57)
Provisions for doubtful trade receivables charged to the Consolidated Income Statement	(35)	(24)	(26)
Utilization of provisions for doubtful trade receivables	6	6	14
Reversal of provisions for doubtful trade receivables	23	19	26
Currency translation effects	(3)	2	(1)
December 31	(50)	(41)	(44)

Trade receivables include amounts denominated in the following major currencies:


($ millions)	2025	2024
US dollar (USD)	776	723
Euro (EUR)	351	303
Japanese yen (JPY)	157	138
Chinese yuan (CNY)	92	82
Brazilian real (BRL)	65	51
Canadian dollar (CAD)	39	40
Russian ruble (RUB)	39	24
Indian rupee (INR)	37	36
British pound (GBP)	37	33
Turkish lira (TRY)	33	28
Australian dollar (AUD)	32	25
South Korean won (KRW)	32	34
Mexican peso (MXN)	28	24
Taiwan dollar (TWD)	25	28
Other currencies	199	167
Total trade receivables, net	1,942	1,736

Other current assets

12 Months Ended

Dec. 31, 2025

Subclassifications of assets, liabilities and equities [abstract]

Other current assets

The below table provides details related to Other current assets as of December 31, 2025 and 2024.


($ millions)	2025	2024
Current portion of long-term receivables from customers	137	117
Current portion of minimum lease payments from finance lease agreements	24	23
Current portion of long-term financial investments measured at FVPL	1	1
Prepaid expenses	124	117
VAT receivables	71	59
Other receivables, security deposits and current assets	127	124
Derivative financial instruments	5	12

Total other current assets	489	453

Right-of-use assets and Lease liabilities

12 Months Ended

Dec. 31, 2025

Leases1 [Abstract]

Right-of-use assets and Lease liabilities

Right-of-use assets

Right-of-use assets as of December 31, 2025 and 2024 were comprised of the following:


($ millions)	2025	2024
Land	22	21
Buildings	385	392
Machinery & equipment and other assets	40	36
Total right-of-use assets	447	449

Depreciation charges of $89 million, $83 million and $91 million for the years ended December 31, 2025, 2024 and 2023, respectively, are shown in the table below by underlying class of asset.


($ millions)	2025	2024	2023
Land	1	1	1
Buildings	66	62	72
Machinery & equipment and other assets	22	20	18
Total depreciation of right-of-use assets	89	83	91

Lease liabilities

Lease liabilities totaled $509 million as of December 31, 2025, including $80 million in current Lease liabilities and $429 million in non-current Lease liabilities. The contractual maturities of the undiscounted lease liabilities as of December 31, 2025 and 2024 are as follows:


	Lease liabilities undiscounted
($ millions)	2025	2024
Not later than one year	103	89
Between one and five years	259	244
Later than five years	283	307
Total lease liabilities undiscounted	645	640


	Lease liabilities
($ millions)	2025	2024
Not later than one year	80	68
Between one and five years	197	183
Later than five years	232	246
Total lease liabilities	509	497

Additional disclosures

The below table provides additional disclosures related to Right-of-use assets and Lease liabilities.


($ millions)	2025	2024	2023
Interest expense on lease liabilities	23	19	17
Expense on short-term, low value and variable leases	2	3	3
Total cash outflows for leases	106	105	99
Thereof:
Lease liability payments(1)	81	83	79
Interest payments(2)	23	19	17
Short-term, low value and variable lease payments(2)	2	3	3

(1) Reported as cash outflows from financing activities net of lease incentives received.

(2) Included within total net cash flows from operating activities.

Non-current and current financial debts

12 Months Ended

Dec. 31, 2025

Financial Instruments [Abstract]

Non-current and current financial debts

The below table summarizes non-current and current Financial debts outstanding as of December 31, 2025 and 2024. The Company's debt is denominated primarily in U.S. dollars, with the exception of the Series 2028 Notes, which are denominated in euros, and certain local credit facilities, which are primarily denominated in Japanese yen.


($ millions)	2025	2024
Non-current financial debts


Local facilities (Japan), floating rate debt due 2028	53	—
2.750% Series 2026 Notes	—	499
2.375% Series 2028 Notes	584	517
3.000% Series 2029 Notes	996	995
2.600% Series 2030 Notes	747	746
5.375% Series 2032 Notes	695	694
3.800% Series 2049 Notes	495	495
5.750% Series 2052 Notes	592	592

Revolving facility, floating rate due 2030	—	—
Total non-current financial debts	4,162	4,538

Current financial debts
Local facilities, floating rate:
Japan	—	26
All others	65	67
2.750% Series 2026 Notes	499	—
Other short-term financial debts, floating rate	5	8
Derivatives	6	4
Total current financial debts	575	105
Total financial debts	4,737	4,643

Interest expense recognized for Financial debts was $169 million, $165 million and $162 million for the years ended December 31, 2025, 2024 and 2023, respectively. The weighted average interest rate on Financial debts was 3.6% and 3.5% in 2025 and 2024, respectively.

Revolving Credit Facility

On October 27, 2023, the Company and certain of its subsidiaries and a group of commercial banks entered into a refinancing agreement to replace the $1.0 billion unsecured committed multicurrency revolving credit facility maturing in March 2026. The new agreement consists of a $1.32 billion unsecured committed multicurrency revolving credit facility maturing five years after the date of the agreement. In the third quarter of 2024, the Company exercised its option to extend the maturity of the Revolving Credit Facility for an additional year to October 2029. The Revolving Credit Facility Agreement primarily bears interest rates equal to a term reference rate or a compounded reference rate, depending on currency, plus an applicable margin and a term reference rate credit adjustment spread, if applicable. It also includes relevant fallback mechanisms in case of rate unavailability. In the third quarter of 2025, the Revolving Credit Facility was extended for one additional year to October 2030. The Revolving Credit Facility remained undrawn as of December 31, 2025.

Local bilateral facilities

Alcon holds a number of local bilateral facilities in different countries, including Japan. These facilities are routinely drawn and repaid throughout the year in the normal course of business. On January 20, 2025, three local bilateral facilities in Japan which were set to mature in February 2025 were refinanced by two facilities with three year maturities totaling $64 million (JPY 10 billion) using the FX rate as of January 20, 2025. Of that amount, $53 million was drawn as of December 31, 2025.

Guarantees

The Series 2026, 2028, 2029, 2030, 2032, 2049 and 2052 Notes, the two local bilateral facilities in Japan and the undrawn Revolving Credit Facility are guaranteed by the Company.

Maturity of contractual undiscounted cash flows and interest payment commitments

The below table provides details on the maturity of the contractual undiscounted cash flows for Alcon's borrowings as of December 31, 2025 and 2024.


	2025			2024
($ millions)	Nominal amount - Current and non-current financial debt	Derivatives	Total	Nominal amount - Current and non-current financial debt	Derivatives	Total
Not later than one year	570	6	576	101	4	105
Between one and five years	2,389	—	2,389	2,021	—	2,021
Later than five years	1,800	—	1,800	2,550	—	2,550
Total contractual undiscounted cash flows	4,759	6	4,765	4,672	4	4,676
Unamortized debt discount and issuance costs	(28)	—	(28)	(33)	—	(33)
Total carrying value	4,731	6	4,737	4,639	4	4,643

The below table provides details on the maturity of the future contractual interest payments commitments as of December 31, 2025 and 2024.


($ millions)	2025	2024
Not later than one year	169	167
Between one and five years	552	613
Later than five years	1,195	1,296
Total cash flows	1,916	2,076

Financial instruments - additional disclosures

12 Months Ended

Dec. 31, 2025

Financial Instruments [Abstract]

Financial instruments - additional disclosures

The below tables provide detail related to financial instruments as of December 31, 2025 and December 31, 2024.


($ millions)	Note	2025
Cash and cash equivalents
Cash in current accounts		648
Cash held in time deposits and money market funds		879
Total cash and cash equivalents		1,527
Financial assets - measured at fair value through other comprehensive income ("FVOCI")
Long-term financial investments	11	328

Total financial assets - measured at FVOCI		328
Financial assets - measured at amortized cost
Trade receivables	13	1,942
Current portion of long-term receivables from customers(1)	14	137
Current portion of minimum lease payments from finance lease agreements(1)	14	24
Other receivables, security deposits and current assets(1)	14	127
Time deposits with original maturity greater than three months		80
Long-term note receivable and other financial assets	11	191
Long-term receivables from customers	11	168
Non-current minimum lease payments from finance lease agreements	11	31
Long-term loans, advances and security deposits	11	46
Total financial assets - measured at amortized cost		2,746
Financial assets - mandatorily measured at fair value through profit and loss ("FVPL")
Deferred compensation assets(2)	11	202
Current portion of long-term financial investments(1)	14	1
Derivative financial instruments(1)	14	5
Long-term financial investments	11	4
Total financial assets - mandatorily measured at FVPL		212
Total financial assets		4,813
Financial liabilities - measured at amortized cost or cost
Current financial liabilities
Financial debts	16	569
Lease liabilities	15	80
Trade payables		926
Total current financial liabilities - measured at amortized cost or cost		1,575
Non-current financial liabilities
Financial debts	16	4,162
Lease liabilities	15	429
Total non-current financial liabilities - measured at amortized cost or cost		4,591
Total financial liabilities - measured at amortized cost or cost		6,166
Financial liabilities - measured at FVPL
Contingent consideration liabilities	18, 19	169
Derivative financial instruments	16	6
Total financial liabilities - measured at FVPL		175
Total financial liabilities		6,341
Net financial assets and financial liabilities		(1,528)

(1) Recorded in Other current assets.

(2) Recorded in Other non-current assets.


($ millions)	Note	2024
Cash and cash equivalents
Cash in current accounts		378
Cash held in time deposits and money market funds		1,298
Total cash and cash equivalents		1,676
Financial assets - measured at fair value through other comprehensive income ("FVOCI")
Long-term financial investments	11	282
Total financial assets - measured at FVOCI		282
Financial assets - measured at amortized cost
Trade receivables	13	1,736
Current portion of long-term receivables from customers(1)	14	117
Current portion of minimum lease payments from finance lease agreements(1)	14	23
Other receivables, security deposits and current assets(1)	14	124
Time deposits with original maturity greater than three months		153
Long-term note receivable and other financial assets	11	175
Long-term receivables from customers	11	121
Non-current minimum lease payments from finance lease agreements	11	28
Long-term loans, advances and security deposits	11	45
Total financial assets - measured at amortized cost		2,522
Financial assets - mandatorily measured at fair value through profit and loss ("FVPL")

Deferred compensation assets(2)	11	180
Current portion of long-term financial investments(1)	14	1
Derivative financial instruments(1)	14	12
Long-term financial investments	11	1
Total financial assets - mandatorily measured at FVPL		194
Total financial assets		4,674
Financial liabilities - measured at amortized cost or cost
Current financial liabilities
Financial debts	16	101
Lease liabilities	15	68
Trade payables		773
Total current financial liabilities - measured at amortized cost or cost		942
Non-current financial liabilities
Financial debts	16	4,538
Lease liabilities	15	429
Total non-current financial liabilities - measured at amortized cost or cost		4,967
Total financial liabilities - measured at amortized cost or cost		5,909
Financial liabilities - measured at FVPL
Contingent consideration liabilities	18	96
Derivative financial instruments	16	4
Total financial liabilities - measured at FVPL		100
Total financial liabilities		6,009
Net financial assets and financial liabilities		(1,335)

(1) Recorded in Other current assets.

(2) Recorded in Other non-current assets.

Fair value by hierarchy

As required by IFRS, financial assets and liabilities recorded at fair value in the Consolidated Financial Statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. There are three hierarchical levels, based on an increasing amount of judgment associated with the inputs to derive fair value for these financial assets and liabilities, which are as follows:

Financial assets and liabilities carried at Level 1 fair value hierarchy are listed in active markets.

Financial assets and liabilities carried at Level 2 fair value hierarchy are valued using corroborated market data.

Level 1 financial assets include money market funds, equity securities in public companies and deferred compensation assets. There were no financial liabilities carried at Level 1 fair value, and Level 2 financial assets and liabilities include derivative financial instruments.

Investments in money market funds and equity securities in public companies are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Investments in money market funds are classified as Cash & cash equivalents within the Consolidated Balance Sheet.

Deferred compensation investments for certain employee benefit plans are held in a rabbi trust and dedicated to pay the benefits under the associated plans but are not considered plan assets as the assets remain available to creditors of Alcon in certain events, including bankruptcy. Rabbi trust assets primarily consist of investments in mutual funds. These assets are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

Level 3 inputs are unobservable for the financial asset or liability. Fair value measurements classified as Level 3 are performed primarily using the income approach or market approach. The financial assets and liabilities generally included in the Level 3 fair value hierarchy are equity securities and convertible notes receivable of private companies measured at FVOCI, fund investments, options to acquire private companies, and contingent consideration liabilities measured at FVPL.

The below table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024.


	December 31, 2025				December 31, 2024
($ millions)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Non-current financial assets
Long-term financial investments measured at FVOCI	132	—	196	328	81	—	201	282

Long-term financial investments measured at FVPL	—	—	4	4	—	—	1	1
Deferred compensation assets	202	—	—	202	180	—	—	180
Non-current financial assets at fair value	334	—	200	534	261	—	202	463
Current financial assets
Money market funds	562	—	—	562	432	—	—	432
Current portion of long-term financial investments measured at FVPL	—	—	1	1	—	—	1	1
Derivative financial instruments	—	5	—	5	—	12	—	12
Current financial assets at fair value	562	5	1	568	432	12	1	445
Financial assets at fair value	896	5	201	1,102	693	12	203	908

Non-current financial liabilities
Non-current contingent consideration liabilities	—	—	(160)	(160)	—	—	(96)	(96)
Non-current financial liabilities at fair value	—	—	(160)	(160)	—	—	(96)	(96)
Current financial liabilities
Current contingent consideration liabilities	—	—	(9)	(9)	—	—	—	—
Derivative financial instruments	—	(6)	—	(6)	—	(4)	—	(4)
Current financial liabilities at fair value	—	(6)	(9)	(15)	—	(4)	—	(4)
Financial liabilities at fair value	—	(6)	(169)	(175)	—	(4)	(96)	(100)

There were no transfers of financial assets or liabilities between levels in the fair value hierarchy during the twelve months ended December 31, 2025 and December 31, 2024.

The carrying amount is a reasonable approximation of fair value for all other financial instruments as of December 31, 2025 and December 31, 2024, with the exception of the Series 2026, 2028, 2029, 2030, 2032, 2049 and 2052 Notes ("Notes"). As of December 31, 2025, the Notes are recorded in Non-current financial debts, with the exception of the Series 2026 Notes, which are recorded in Current financial debts. As of December 31, 2025, the Notes had a fair value of $4,466 million and carrying value of $4,608 million. As of December 31, 2024, the Notes are recorded in Non-current financial debts. As of December 31, 2024, the Notes had a fair value of $4,240 million and carrying value of $4,538 million. The fair value of the Notes was determined using Level 2 inputs. The Notes were valued using the quoted market price for such Notes, which have low trading volumes.

Level 3 financial instruments measured at fair value on a recurring basis

Financial assets


	Long-term financial investments measured at FVOCI		Financial investments measured at FVPL
($ millions)	2025	2024	2025	2024
Balance as of January 1	201	147	2	8
Additions	42	116	5	—

Net (losses)/gains recognized in Consolidated Statement of Comprehensive Income	(20)	90	—	—
Net gains recognized in Consolidated Income Statement	—	—	—	2
Amortization	—	—	(2)	(3)
Transfer to Other non-current assets	—	(132)	—	—
Settlements	(27)	(20)	—	(5)
Balance as of December 31	196	201	5	2

During the prior year, net gains recognized for Level 3 Long-term financial investments measured at FVOCI primarily relate to a fair value adjustment for an equity interest in a private company. The fair value of the equity interest was determined using the market approach with Level 3 inputs that are not readily observable, primarily prices for similar securities of the same company. During 2024, Alcon acquired additional equity interest in that company and classified the investment as an associated company, which is accounted for using the equity method as Alcon is considered to have significant influence. The investment was transferred to Investments in associated companies within "Other non-current assets".

If the pricing parameters for the Level 3 inputs were to change for Long-term financial investments measured at FVOCI and Financial investments measurement at FVPL by 10% positively or negatively, this would change the amount recorded in the 2025 Consolidated Statement of Comprehensive Income by $20 million.

Financial liabilities


	Contingent consideration liabilities
($ millions)	2025	2024
Balance as of January 1	(96)	(90)
Additions	(63)	(6)
Accretion for passage of time	(11)	(7)
Adjustments for changes in assumptions	—	7

Currency translation effects	1	—
Balance as of December 31	(169)	(96)

Additions to contingent consideration liabilities in the current year period relate to the LumiThera and Cylite acquisitions. Additions to contingent consideration liabilities in the prior year period relate to the BELKIN acquisition. Refer to Note 21.1 for additional information.

As of December 31, 2025, the probability of success for various development and commercial milestones ranges from 0% to 95% and the maximum remaining potential payments related to contingent consideration from business combinations is $1.4 billion, plus other amounts calculated as a percentage of commercial sales in cases where there is not a specified maximum contractual payment amount. The estimation of probability typically depends on factors such as technical milestones or market performance and is adjusted for the probability of payment. If material, probable payments are appropriately discounted to reflect the impact of time.

Changes in contingent consideration liabilities in the prior year included fair value adjustments for changes in assumptions of $7 million, primarily due to revised expectations for timing of settlement for development and commercial milestones. As of December 31, 2024, the probability of success for various development and commercial milestones ranged from 0% to 55% and the maximum remaining potential payments related to contingent consideration from business combinations was $780 million, plus other amounts calculated as a percentage of commercial sales in cases where there is not a specified maximum contractual payment amount.

Contingent consideration liabilities are reported in "Provisions & other non-current liabilities" and "Provisions & other current liabilities" based on the projected timing of settlement which is estimated to range from 2026 through 2039 for contingent consideration obligations as of December 31, 2025.

For the determination of the fair value of a contingent consideration various unobservable inputs are used. A change in these inputs might result in a significantly higher or lower fair value measurement. The inputs used are, among others, the probability of success, sales forecast and assumptions regarding the discount rate, timing and different scenarios of triggering events. The significance and usage of these inputs to each contingent consideration may vary due to differences in the timing and triggering events for payments or in the nature of the asset related to the contingent consideration.

As the most significant Level 3 input for contingent consideration liabilities, if the probability of success were to change by 10% positively or negatively, the amounts recorded in the 2025 Consolidated Income Statement for contingent consideration would increase by $55 million or decrease by $37 million, respectively.

Time deposits

During 2025, Alcon purchased time deposits of $80 million with a six-month term maturing on April 29, 2026. During 2024, Alcon purchased time deposits of $150 million with a six-month term maturing on February 17, 2025. The time deposits are measured at amortized cost and had a carrying value of $80 million and $153 million as of December 31, 2025 and 2024, respectively.

Long-term note receivable and other financial assets measured at amortized cost

On May 22, 2023, Alcon entered into financing arrangements with a long-term supplier, Lifecore Biomedical, Inc. and certain of its affiliates (collectively, “Lifecore”). Alcon provided Lifecore total commitments of $150 million, primarily related to a $142 million senior term loan facility ("Long-term note receivable") maturing on May 22, 2029. The arrangements also include a sale and leaseback agreement for certain machinery and equipment. Transaction costs directly attributable to the acquisition of the financial assets amounting to $4 million were capitalized to financial assets at amortized cost.

The Long-term note receivable bears an annual fixed interest rate of 10%, which is payable in kind (“PIK”) for the first three years, and payable 3% in cash interest and 7% PIK interest thereafter until maturity, unless otherwise elected by Lifecore to pay a greater proportion in cash. The Long-term note receivable is secured by a Pledge and Security agreement (“security agreement”) whereby Alcon is granted first priority security interest in certain collateral, including but not limited to equipment, fixtures, real property and intellectual property. The security agreement is in effect until the payment in full of the term loan facility.

Due to Lifecore's significant financial difficulties at the time the loan was originated, Alcon concluded the financial assets were originated credit-impaired. The lifetime ECL was analyzed at inception and utilized in calculating the credit-adjusted effective interest rate with no impact on the carrying value of the financial assets or effective interest rate of 10%. In addition, as of December 31, 2025 and December 31, 2024, Alcon assessed there was no lifetime ECL due to the assessment of the collateral under the security agreement.

Derivatives

The below table summarizes the net value of unsettled positions for currency derivatives contracts including swaps, forwards and options as of December 31, 2025 and December 31, 2024.


($ millions)	December 31, 2025	December 31, 2024

Unrealized gains in Other current assets	5	12
Unrealized losses in Current financial debts	(6)	(4)

Net value of unsettled positions for derivatives contracts	(1)	8

There are master agreements with several banking counterparties for derivatives financial instruments; however, there were no derivative financial instruments meeting the offsetting criteria under IFRS as of December 31, 2025 or December 31, 2024.

Capital management

Alcon manages its capital with the objectives of maintaining the ability to continue as a going concern, allow for investment, mitigate against potential future risks and provide returns to shareholders. The capital structure of Alcon consists of Cash and cash equivalents, Time deposits, Total equity and Total financial debts and is reported to management as part of regular internal review processes. Alcon is not subject to regulatory or other external capital adequacy requirements. As of December 31, 2025, Alcon's long-term credit rating with S&P Global Ratings was BBB+ (stable outlook) (2024: BBB+) and with Moody's Investor Service was Baa1 (stable outlook) (2024: Baa1).

Nature and extent of risks arising from financial instruments

Market risk

Alcon is exposed to market risk, primarily related to foreign currency exchange rates, interest rates and the market value of investments, including investments of liquid funds and equity investments. Alcon actively monitors and seeks to reduce, where it deems it appropriate to do so, fluctuations in these exposures. It is Alcon policy and practice to enter into a variety of derivative financial instruments to manage the volatility of these exposures and to enhance the yield on the investment of liquid funds. Alcon does not enter into any financial transactions containing a risk that cannot be quantified at the time the transaction is concluded. In addition, Alcon does not sell short assets it does not have, or does not know it will have, in the future. Alcon only sells existing assets or enters into transactions and future transactions (in the case of anticipatory hedges) that it confidently expects it will have in the future, based on past experience.

In the case of liquid funds, Alcon may write call options on assets it has, or write put options on positions it wants to acquire and has the liquidity to acquire. Alcon expects that any loss in value for these instruments generally would be offset by increases in the value of the underlying transactions. Further, Alcon limits its equity investments to strategic transactions as part of business development activities.

Foreign currency exchange rate and interest rate risks are described in additional detail below.

Foreign currency exchange rate risk

Alcon uses the US Dollar as its reporting currency and is therefore exposed to foreign currency exchange movements, primarily in Euros, Japanese Yen, Chinese Renminbi, Canadian Dollars, Singaporean Dollars, Swiss Francs, Russian Rubles and emerging market currencies. Fluctuations in the exchange rate between the US Dollar and other currencies can have a significant effect on both Alcon’s results of operations, including reported sales and earnings, as well as on the reported value of Alcon's assets, liabilities and cash flows. This, in turn, may significantly affect the comparability of period-to-period results of operations.

Alcon manages its global currency exposure by engaging in hedging transactions where management deems appropriate (forward contracts, options and swaps). Specifically, Alcon enters into various contracts that reflect the changes in the value of foreign currency exchange rates to preserve the value of assets. Refer to Note 2 for information regarding the hyperinflationary economies in which Alcon operates.

Interest rate risk

Alcon's exposure to cash flow interest rate risks arises from the portion of financial debts at variable rates as well as short-term financial investments. Alcon may enter into interest rate swap agreements, in which it exchanges periodic payments based on a notional amount and agreed-upon fixed and variable rate interests. If the interest rates for financial debts at variable rates and short-term financial investments had been higher / lower by 1% in 2025, the income before taxes would have been higher / lower by $13 million from the impacts of interest expense and interest income based on the change in the interest rate. As of December 31, 2025, 97% of Alcon's financial debt is at fixed interest rates, materially reducing exposure to cash flow interest rate risk in the near term. However, Alcon's exposure to cash flow interest rate risk may increase following the maturity of financial debts with fixed interest rates.

Commodity price risk

Alcon's exposure to commodity price risk arises from inflation and supply chain challenges related to anticipated purchases of certain commodities used as raw materials by Alcon's businesses. A change in those prices may alter the gross margin of a specific business, but generally not by more than 10% of the gross margin and thus below Alcon's risk management tolerance levels. Alcon primarily manages inflationary pressures through pricing actions and productivity initiatives. Based on historical and anticipated price fluctuations, Alcon does not enter into significant forward and option contracts to manage fluctuations in prices of anticipated purchases.

Credit risk

Credit risks arise from the possibility that customers may not be able to settle their obligations as agreed. To manage this risk, Alcon periodically assesses credit risk, assigns individual credit limits, and takes actions to mitigate credit risk where appropriate. Refer to Note 13 for more information.

No customer accounted for 10% or more of Alcon's net sales in 2025, 2024 or 2023.

Credit risk also arises from originated credit-impaired financial assets (Long-term note receivable and other financial assets at amortized cost). The maximum exposure to credit risk is reflected in the carrying value of the assets, which amounted to $192 million as of December 31, 2025, including a non-current portion of $191 million in "Financial assets" and a current portion of $1 million in "Other current assets". As of December 31, 2025, in accordance with the terms of the security agreement, the credit risk exposure is fully mitigated by the collateral, with an estimated amount of approximately $420 million. The estimated amount of collateral increased approximately 30% from December 31, 2024 based on updated forecasts reflecting recent market data and discounted cash flow analysis. There have been no significant changes in the quality of the collateral or the terms of the signed security agreement. In addition, Alcon performs an ongoing credit evaluation of Lifecore’s financial condition, monitors payment performance and assesses current economic conditions, as well as reasonable and supportable forecasts of future economic conditions, that may affect collectability of the outstanding financial assets.

Liquidity risk

Liquidity risk is defined as the risk that Alcon may not be able to settle or meet its obligations on time or at a reasonable price. Alcon Treasury is responsible for liquidity, funding and settlement management. In addition, liquidity and funding risks, and related processes and policies, are overseen by management. Alcon manages its liquidity risk on a consolidated basis according to business needs, tax, capital or regulatory considerations, if applicable, through numerous sources of financing in order to maintain flexibility. Alcon's cash and cash equivalents are maintained at a number of financial institutions. To mitigate the risk of uninsured balances, management selects financial institutions based on their credit ratings and financial strength, and performs ongoing evaluations of these institutions to limit our concentration risk exposure. Management monitors Alcon's net debt or liquidity position through rolling forecasts on the basis of expected cash flows. Refer to Note 16 for further information on maturity of the contractual undiscounted cash flows for Alcon's borrowings and interest on borrowings.

Provisions and other non-current liabilities

12 Months Ended

Dec. 31, 2025

Subclassifications of assets, liabilities and equities [abstract]

Provisions and other non-current liabilities

The below table provides details related to Provisions and other non-current liabilities as of December 31, 2025 and 2024.


($ millions)	Note	2025	2024
Accrued liability for employee benefits:
Defined benefit pension plans	22	210	198
Other post-employment benefits	22	206	208
Other long-term employee benefits and deferred compensation		232	205
Provisions for litigation and other legal matters		—	—
Contingent consideration	17	160	96
Deferred income		91	86
Other non-current liabilities		40	32
Total provisions and other non-current liabilities		939	825

Alcon believes that its total provisions are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities in this area, Alcon may incur additional costs beyond the amounts provided. Management believes that such additional amounts, if any, would not be material to Alcon's financial condition but could be material to the results of operations or cash flows in a given period.

Provisions for litigation and other legal matters

Alcon has established provisions for certain litigation and other legal matters, where a potential cash outflow is probable and a reliable estimate can be made of the amount of the outflow. These provisions represent the current best estimate of the total financial effect for these matters. Potential cash outflows reflected in a provision may be fully or partially offset by insurance in certain circumstances.

Alcon has not established provisions for potential damage awards for certain additional legal claims if Alcon currently believes that a payment is either not probable or cannot be reliably estimated. A number of other legal matters are in such early stages or the issues presented are such that Alcon has not made any provisions since it cannot currently estimate either a potential outcome or the amount of any potential losses. For these reasons, among others, Alcon generally is unable to make a reliable estimate of possible loss with respect to such cases. It is therefore not practicable to provide information about the potential financial impact of those cases.

There might also be cases for which Alcon was able to make a reliable estimate of the possible loss or the range of possible loss, but Alcon believes that publication of such information on a case-by-case basis would prejudice Alcon's position in ongoing legal proceedings or in any related settlement discussions. Accordingly, in such cases, information would be disclosed with respect to the nature of the contingency, but no disclosure is provided as to an estimate of the possible loss or range of possible loss.

Note 25 contains additional information on contingencies.

Summary of significant legal proceedings

A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, mergers and acquisitions, employment, wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, intellectual property, including under the Hatch-Waxman Act, and anti-bribery matters such as those under the Foreign Corrupt Practices Act of 1977 ("FCPA"), as amended.

As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect Alcon's business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. The following is a summary as of February 24, 2026 of significant legal proceedings to which Alcon or its subsidiaries were or are currently a party.

Hatch-Waxman patent litigation

From time to time, Alcon is a party to certain patent infringement proceedings in the US in connection with Notices of Paragraph IV Certification under the Hatch-Waxman Act received from third-party generic manufacturers respecting their applications for generic versions of certain products sold by or on behalf of Alcon, including Simbrinza, Pataday, Rhopressa and Rocklatan, or other similar suits.

During the third quarter of 2022, Alcon received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying Alcon that a generic drug company filed an application with the FDA seeking pre-patent expiry approval to sell a generic version of Simbrinza (brinzolamide/brimonidine tartrate ophthalmic suspension) 1%/0.2%. In October 2022, Alcon filed a patent infringement lawsuit in the US District Court for the District of Delaware against that generic drug company. The lawsuit, which asserted two patents, automatically stayed FDA approval of the generic drug application for up to 30 months from receipt of the Paragraph IV Certification Letter. In August 2024, the court granted in part the generic drug company defendants’ motion for summary judgment of non-infringement of the asserted patents. A trial on the remaining patent claims was held on October 21, 2024 through October 23, 2024. On February 5, 2025, the Court issued Findings of Fact and Conclusions of Law concerning the patent claims, and the defenses to those claims, that were the subject of the trial. The Court ruled that Alcon did not prove by a preponderance of the evidence that the defendant’s proposed generic version of Simbrinza infringed the patent claims asserted at the trial. The Court also ruled that the generic drug company defendant did not prove by clear and convincing evidence that those patent claims were invalid. In the first quarter of 2025, both Alcon and the generic drug company defendant filed notices of appeal of certain rulings made by the trial court. The parties' written briefing in the appeal concluded in January 2026.

Civil Investigative Demand

In July 2024, Alcon received a Civil Investigative Demand from the US Department of Justice (“DoJ”) in connection with a civil investigation under the False Claims Act relating to discounts on surgical equipment servicing contracts. Alcon is cooperating with the DoJ.

Litigation and other legal matters provision movements


($ millions)	2025	2024	2023
January 1	4	6	206
Additions to provisions	25	15	3
Cash payments	(9)	(13)	(201)
Releases of provisions	(2)	(4)	(2)
December 31	18	4	6
Less current portion	(18)	(4)	(6)
Non-current provisions for litigation and other legal matters at December 31	—	—	—

Alcon believes that its total provisions for litigation and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, additional liabilities and costs may be incurred beyond the amounts provided.

Provisions and other current liabilities

The below table provides details related to Provisions and other current liabilities as of December 31, 2025 and 2024.


($ millions)	Note	2025	2024
Accruals for compensation and benefits including social security		498	531
Accruals for deductions from revenue		402	396
Taxes other than income taxes		84	59
Deferred income		84	73
Accrued expenses for goods and services received but not invoiced		82	65
Accrued interest on financial debts		34	32
Provisions for litigation and other legal matters	18	18	4
Accruals for royalties		10	11
Contingent consideration	17	9	—
Accrued equity-based payments		9	11
Restructuring provisions		—	—
Other payables		56	46
Total provisions and other current liabilities		1,286	1,228

Provisions and accruals are based upon management's best estimate and adjusted for actual experience. Such adjustments to the historical estimates have not been material.

Accruals for deductions from revenue

The below table shows the movement of accruals for deductions from revenue.


($ millions)	2025	2024	2023
January 1	396	394	386
Additions	1,316	1,256	1,235

Payments/utilizations	(1,319)	(1,243)	(1,218)
Changes in offset against gross trade receivables	—	1	(8)
Currency translation effects	9	(12)	(1)
December 31	402	396	394

Restructuring provisions

The below table shows the movement of restructuring provisions.


($ millions)	2025	2024	2023
January 1	—	29	64
Additions	—	—	39
Cash payments	—	(27)	(74)
Releases	—	(1)	—
Currency translation effects	—	(1)	—
December 31	—	—	29

There were no additions to restructuring provisions in 2025 and 2024. In 2023, additions to restructuring provisions of $39 million were primarily related to the multi-year transformation program initially announced by Alcon on November 19, 2019, subsequently expanded as announced on November 15, 2022 and completed in the fourth quarter of 2023. The costs were mainly related to accrued severance for the associates whose positions were eliminated.

Provisions and other current liabilities

12 Months Ended

Dec. 31, 2025

Subclassifications of assets, liabilities and equities [abstract]

Provisions and other current liabilities

Provisions and other non-current liabilities

The below table provides details related to Provisions and other non-current liabilities as of December 31, 2025 and 2024.


($ millions)	Note	2025	2024
Accrued liability for employee benefits:
Defined benefit pension plans	22	210	198
Other post-employment benefits	22	206	208
Other long-term employee benefits and deferred compensation		232	205
Provisions for litigation and other legal matters		—	—
Contingent consideration	17	160	96
Deferred income		91	86
Other non-current liabilities		40	32
Total provisions and other non-current liabilities		939	825

Alcon believes that its total provisions are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities in this area, Alcon may incur additional costs beyond the amounts provided. Management believes that such additional amounts, if any, would not be material to Alcon's financial condition but could be material to the results of operations or cash flows in a given period.

Provisions for litigation and other legal matters

Alcon has established provisions for certain litigation and other legal matters, where a potential cash outflow is probable and a reliable estimate can be made of the amount of the outflow. These provisions represent the current best estimate of the total financial effect for these matters. Potential cash outflows reflected in a provision may be fully or partially offset by insurance in certain circumstances.

Alcon has not established provisions for potential damage awards for certain additional legal claims if Alcon currently believes that a payment is either not probable or cannot be reliably estimated. A number of other legal matters are in such early stages or the issues presented are such that Alcon has not made any provisions since it cannot currently estimate either a potential outcome or the amount of any potential losses. For these reasons, among others, Alcon generally is unable to make a reliable estimate of possible loss with respect to such cases. It is therefore not practicable to provide information about the potential financial impact of those cases.

There might also be cases for which Alcon was able to make a reliable estimate of the possible loss or the range of possible loss, but Alcon believes that publication of such information on a case-by-case basis would prejudice Alcon's position in ongoing legal proceedings or in any related settlement discussions. Accordingly, in such cases, information would be disclosed with respect to the nature of the contingency, but no disclosure is provided as to an estimate of the possible loss or range of possible loss.

Note 25 contains additional information on contingencies.

Summary of significant legal proceedings

A number of Alcon companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time, including proceedings regarding product liability, sales and marketing practices, commercial disputes, mergers and acquisitions, employment, wrongful discharge, antitrust, securities, health and safety, environmental, tax, international trade, privacy, intellectual property, including under the Hatch-Waxman Act, and anti-bribery matters such as those under the Foreign Corrupt Practices Act of 1977 ("FCPA"), as amended.

As a result, Alcon may become subject to substantial liabilities that may not be covered by insurance and could affect Alcon's business, financial position and reputation. While Alcon does not believe that any of these legal proceedings will have a material adverse effect on its financial position, litigation is inherently unpredictable and large judgments sometimes occur. As a consequence, Alcon may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. The following is a summary as of February 24, 2026 of significant legal proceedings to which Alcon or its subsidiaries were or are currently a party.

Hatch-Waxman patent litigation

From time to time, Alcon is a party to certain patent infringement proceedings in the US in connection with Notices of Paragraph IV Certification under the Hatch-Waxman Act received from third-party generic manufacturers respecting their applications for generic versions of certain products sold by or on behalf of Alcon, including Simbrinza, Pataday, Rhopressa and Rocklatan, or other similar suits.

During the third quarter of 2022, Alcon received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying Alcon that a generic drug company filed an application with the FDA seeking pre-patent expiry approval to sell a generic version of Simbrinza (brinzolamide/brimonidine tartrate ophthalmic suspension) 1%/0.2%. In October 2022, Alcon filed a patent infringement lawsuit in the US District Court for the District of Delaware against that generic drug company. The lawsuit, which asserted two patents, automatically stayed FDA approval of the generic drug application for up to 30 months from receipt of the Paragraph IV Certification Letter. In August 2024, the court granted in part the generic drug company defendants’ motion for summary judgment of non-infringement of the asserted patents. A trial on the remaining patent claims was held on October 21, 2024 through October 23, 2024. On February 5, 2025, the Court issued Findings of Fact and Conclusions of Law concerning the patent claims, and the defenses to those claims, that were the subject of the trial. The Court ruled that Alcon did not prove by a preponderance of the evidence that the defendant’s proposed generic version of Simbrinza infringed the patent claims asserted at the trial. The Court also ruled that the generic drug company defendant did not prove by clear and convincing evidence that those patent claims were invalid. In the first quarter of 2025, both Alcon and the generic drug company defendant filed notices of appeal of certain rulings made by the trial court. The parties' written briefing in the appeal concluded in January 2026.

Civil Investigative Demand

In July 2024, Alcon received a Civil Investigative Demand from the US Department of Justice (“DoJ”) in connection with a civil investigation under the False Claims Act relating to discounts on surgical equipment servicing contracts. Alcon is cooperating with the DoJ.

Litigation and other legal matters provision movements


($ millions)	2025	2024	2023
January 1	4	6	206
Additions to provisions	25	15	3
Cash payments	(9)	(13)	(201)
Releases of provisions	(2)	(4)	(2)
December 31	18	4	6
Less current portion	(18)	(4)	(6)
Non-current provisions for litigation and other legal matters at December 31	—	—	—

Alcon believes that its total provisions for litigation and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, additional liabilities and costs may be incurred beyond the amounts provided.

Provisions and other current liabilities

The below table provides details related to Provisions and other current liabilities as of December 31, 2025 and 2024.


($ millions)	Note	2025	2024
Accruals for compensation and benefits including social security		498	531
Accruals for deductions from revenue		402	396
Taxes other than income taxes		84	59
Deferred income		84	73
Accrued expenses for goods and services received but not invoiced		82	65
Accrued interest on financial debts		34	32
Provisions for litigation and other legal matters	18	18	4
Accruals for royalties		10	11
Contingent consideration	17	9	—
Accrued equity-based payments		9	11
Restructuring provisions		—	—
Other payables		56	46
Total provisions and other current liabilities		1,286	1,228

Provisions and accruals are based upon management's best estimate and adjusted for actual experience. Such adjustments to the historical estimates have not been material.

Accruals for deductions from revenue

The below table shows the movement of accruals for deductions from revenue.


($ millions)	2025	2024	2023
January 1	396	394	386
Additions	1,316	1,256	1,235

Payments/utilizations	(1,319)	(1,243)	(1,218)
Changes in offset against gross trade receivables	—	1	(8)
Currency translation effects	9	(12)	(1)
December 31	402	396	394

Restructuring provisions

The below table shows the movement of restructuring provisions.


($ millions)	2025	2024	2023
January 1	—	29	64
Additions	—	—	39
Cash payments	—	(27)	(74)
Releases	—	(1)	—
Currency translation effects	—	(1)	—
December 31	—	—	29

There were no additions to restructuring provisions in 2025 and 2024. In 2023, additions to restructuring provisions of $39 million were primarily related to the multi-year transformation program initially announced by Alcon on November 19, 2019, subsequently expanded as announced on November 15, 2022 and completed in the fourth quarter of 2023. The costs were mainly related to accrued severance for the associates whose positions were eliminated.

Consolidated Statement of Cash Flows - additional details

12 Months Ended

Dec. 31, 2025

Cash Flow Statement [Abstract]

Consolidated Statement of Cash Flows - additional details

The Consolidated Statement of Cash Flows was prepared in accordance with IAS 7, Statement of Cash Flows. The below tables provide additional detail supporting select line items in the Consolidated Statement of Cash Flows.

20.1 Depreciation, amortization, impairments and fair value adjustments


($ millions)	2025	2024	2023
Property, plant & equipment	417	393	385
Right-of-use assets	89	83	91
Intangible assets	829	752	745
Financial assets	—	—	7
Other non-current assets(1)	(144)	(2)	(2)
Total	1,191	1,226	1,226

(1) For the year ended December 31, 2025, Other non-current assets includes gains on fair value remeasurements of investments in associated companies. Refer to Note 21 for additional information.

20.2 Change in net current assets and other operating cash flow items


($ millions)	2025	2024	2023
(Increase) in inventories	(156)	(47)	(271)
(Increase) in trade receivables	(129)	(55)	(110)
Increase/(decrease) in trade payables	116	(15)	(51)
Net change in other operating assets	(47)	(28)	(23)
Net change in other operating liabilities	(24)	(44)	51
Total	(240)	(189)	(404)

20.3 Reconciliation of liabilities arising from financing activities


	Financial Liabilities
($ millions)	Non-current financial debts	Current financial debts	Non-current lease liabilities	Current lease liabilities
January 1, 2025	4,538	105	429	68
Repayment of financial debts	(1)	(111)
Proceeds from financial debts, net of issuance costs	—	59
Impact from business combinations	1	34	4	3
Additions to leases			63	14
Other net changes in financial debts	55	(17)
Amortization of discounts on financial debts	2	—
Payments of lease liabilities, net			—	(81)
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities			—	(23)
Changes in fair values and other non-cash changes, net	3	2	(5)	20
Currency translation effects	63	4	14	3
Reclassification from non-current to current	(499)	499	(76)	76
December 31, 2025	4,162	575	429	80


	Financial Liabilities
($ millions)	Non-current financial debts	Current financial debts	Non-current lease liabilities	Current lease liabilities
January 1, 2024(1)	4,676	63	335	71
Repayment of financial debts	—	(47)
Proceeds from financial debts, net of issuance costs	—	59
Additions to leases			170	21
Other net changes in financial debts	—	(66)
Amortization of discounts on financial debts	2	—
Payments of lease liabilities, net			—	(83)
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities			—	(19)
Changes in fair values and other non-cash changes, net	3	(6)	(1)	16
Currency translation effects	(39)	(2)	(10)	(3)
Reclassification between non-current and current	(104)	104	(65)	65
December 31, 2024	4,538	105	429	68

(1) As described in Note 2, Alcon adopted Amendments to IAS 1, Presentation of Financial Statements, effective January 1, 2024, resulting in retrospective reclassification of financial debts of $82 million from current to non-current.


	Financial Liabilities
($ millions)	Non-current financial debts	Current financial debts	Non-current lease liabilities	Current lease liabilities
January 1, 2023	4,541	107	359	71
Repayment of financial debts	—	(34)
Proceeds from financial debts, net of issuance costs	29	40
Additions to leases			48	15
Other net changes in financial debts	—	37
Amortization of discounts on financial debts	2	—
Payments of lease liabilities, net			—	(79)
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities			—	(17)
Changes in fair values and other non-cash changes, net	3	(1)	(4)	11
Currency translation effects	19	(4)	2	—
Reclassification between non-current and current(1)	82	(82)	(70)	70
December 31, 2023(1)	4,676	63	335	71

(1) As described in Note 2, Alcon adopted Amendments to IAS 1, Presentation of Financial Statements, effective January 1, 2024, resulting in retrospective reclassification of financial debts of $82 million from current to non-current.

20.4 Additional disclosure of non-cash investing and financing activities


($ millions)	2025	2024	2023
Treasury stock issued for settlement of equity-based compensation plan, net of withholding taxes	110	109	107
Non-cash additions of right-of-use assets in exchange for a lease liability	77	191	63
Non-cash additions of property, plant & equipment	70	53	55
Non-cash additions of intangible assets	22	13	16
Non-cash additions of financial assets	—	118	—

Acquisitions, divestment of product rights and out-licensing

12 Months Ended

Dec. 31, 2025

Business Combinations, Asset Acquisitions and Disposals [Abstract]

Acquisitions, divestment of product rights and out-licensing

21.1 Acquisitions of businesses

Fair value of assets and liabilities arising from acquisition of businesses

During 2025, acquisitions of businesses included LumiThera, Inc., Aurion Biotech, Inc., and Cylite Pty Ltd. During 2024, acquisition of a business included BELKIN Vision Ltd. There were no acquisitions of businesses in 2023.

Surgical - Acquisition of LumiThera, Inc.

On September 2, 2025, Alcon closed on a merger agreement and acquired the remaining outstanding equity of LumiThera, resulting in 100% ownership when combined with Alcon's existing investment in LumiThera. LumiThera is a privately held, US-based company that developed and commercializes the Valeda photobiomodulation device, a multi-wavelength treatment for dry age-related macular degeneration, which supplements Alcon's Surgical portfolio. The acquisition of the equity interest was accounted for as a business combination that resulted in goodwill of $38 million after the updated preliminary PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing, net of cash acquired, was $124 million.

The potential commercial milestones payable for specified revenue targets between 2026 and 2039 could be up to $660 million and the potential development milestones payments for regulatory approval in China or Japan could be up to $30 million. The contingent consideration recognized during the third quarter of 2025 represents its fair value (Level 3) at the acquisition date.

The acquisition date fair value of the previously held financial investment measured at FVOCI by Alcon was $16 million, resulting in a remeasurement fair value gain in Other comprehensive income of $9 million, net of taxes.

During the measurement period, Alcon updated its preliminary valuation of the fair value of acquired assets and assumed liabilities, primarily due to finalization of opening balance sheet testing procedures post-acquisition date. The below table summarizes the updated preliminary PPA for the LumiThera business combination as of December 31, 2025. The PPA remains provisional and is subject to change as additional information is obtained during the respective measurement period up to one year from the acquisition date.


($ millions)	Preliminary PPA	Measurement period adjustments	Updated preliminary PPA
Current marketed products	185	5	190
Deferred tax assets	9	—	9
Inventories	5	(2)	3
Trade receivables	2	—	2
Cash and cash equivalents	1	—	1
Other current assets	1	—	1
Deferred tax liabilities	(42)	(2)	(44)
Trade payables	(2)	—	(2)
Provisions and other current liabilities	(3)	1	(2)
Net identifiable assets acquired	156	2	158
Goodwill	42	(4)	38
Net assets acquired as a result of business combination	198	(2)	196

Cash paid at closing	126	(1)	125
Cash expected to be paid after closing	2	(1)	1
Previously-held FVOCI financial investment	16	—	16
Contingent consideration	54	—	54
Total acquisition date fair value of consideration	198	(2)	196

Goodwill is attributable primarily to the accounting impact of deferred tax liabilities and assembled workforce. The goodwill is not deductible for tax purposes.

Direct acquisition costs of $6 million were recognized in "Other expense" in the 2025 Consolidated Income Statement and were reported in operating cash flows in the 2025 Consolidated Statement of Cash Flows.

Pro forma financial information is not presented for the LumiThera business acquisition as it is not material to the Consolidated Financial Statements. The results of operations since the date of acquisition were not material.

Vision Care - Acquisition of majority interest in Aurion Biotech, Inc.

On March 24, 2025, Alcon closed on agreements with certain existing shareholders of Aurion to acquire approximately 58.7% of outstanding equity for approximately $486 million and outstanding convertible notes from the same shareholders for approximately $36 million, totaling $522 million cash paid at closing. When combined with Alcon's existing 40.3% investment in Aurion, the transaction resulted in 99% ownership of Aurion on an outstanding basis. Aurion's ownership on a fully diluted basis at closing was approximately 85.0% held by Alcon and 15.0% held by non-controlling interests. This transaction supports Alcon's ophthalmic pharmaceutical portfolio expansion, including biopharmaceutical applications, with the potential to advance the first-ever corneal cell therapy candidate. The acquisition of majority interest was accounted for as a business combination that resulted in goodwill of $175 million after the final PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing, net of cash acquired, was $496 million. The transaction also resulted in non-controlling interests, described below.

The acquisition date fair value of the equity interest previously held by Alcon was $334 million, resulting in a remeasurement fair value gain of $136 million in the first quarter of 2025. The fair value gain has been included in "Other income" in the 2025 Consolidated Income Statement.

During the measurement period, Alcon updated its preliminary valuation of the fair value of acquired assets and assumed liabilities, primarily due to changes in financial projections for certain operations. The below table summarizes the PPA for the Aurion business combination which was finalized in the fourth quarter of 2025.


($ millions)	Preliminary PPA	Measurement period adjustments	Final PPA
Property, plant and equipment	3	—	3
Right-of-use assets	6	—	6
Current marketed products	105	(40)	65
Acquired IPR&D	825	(5)	820
Deferred tax assets	43	(3)	40
Other current assets	6	—	6
Cash and cash equivalents	26	—	26
Non-current lease liabilities	(4)	—	(4)
Non-current financial debts	(1)	—	(1)
Deferred tax liabilities	(212)	10	(202)
Current financial debts	(34)	—	(34)
Current lease liabilities	(2)	—	(2)
Current income tax liabilities	(1)	—	(1)
Trade payables	(3)	—	(3)
Provisions and other current liabilities	(14)	3	(11)
Net identifiable assets acquired	743	(35)	708
Goodwill	140	35	175
Non-controlling interests	(27)	—	(27)
Net assets acquired as a result of business combination	856	—	856

Cash paid at closing	522	—	522
Previously-held investment in associated company	334	—	334
Total acquisition date fair value of consideration	856	—	856

Goodwill is attributable primarily to assembled workforce and biopharmaceutical research and development capabilities. The goodwill is not deductible for tax purposes.

Direct acquisition costs of $2 million were recognized in "Other expense" in the 2025 Consolidated Income Statement and were reported in operating cash flows in the 2025 Consolidated Statement of Cash Flows.

Subsequent to the acquisition, the current and non-current financial debts were repaid in the second quarter of 2025.

Pro forma financial information is not presented for the Aurion business acquisition as it is not material to the Consolidated Financial Statements.

For the period from the date of the Aurion acquisition, March 24, 2025, through December 31, 2025, the acquired business increased Alcon's "Net sales" by $12 million and reduced Alcon's "Net income" by $37 million.

Non-controlling interests

Alcon elected to recognize the non-controlling interests in Aurion at fair value.

Non-controlling interests with a fair value of $27 million were recognized at acquisition date, comprised of common stock and vested options. The fair value of non-controlling interests was estimated using the market and income approaches, which were equally weighted. The income approach valuation utilized net present value techniques which involve significant judgment by management and include assumptions with measurement uncertainty. The estimates include cash flow projections for a five-year period based on management forecasts, sales forecasts beyond the five-year period extrapolated using long-term expected growth rates, discount rates and future tax rates. Actual cash flows and values could vary significantly from forecasted future cash flows and related values derived using net present value techniques. Since the cash flow projections are a significant unobservable input, the fair value of the non-controlling interests was classified as Level 3 in the fair value hierarchy.

On March 26, 2025, the Aurion Board exercised its discretion under the Aurion stock plan and approved an exchange of outstanding vested options of Aurion employees for cash as settlement of their non-controlling interests in Aurion. During the third quarter of 2025, settlement agreements were executed among certain former Aurion executives, Alcon and Aurion. As part of these agreements, certain payments were made to these former executives and, additionally, Alcon acquired additional non-controlling interests in Aurion. During the fourth quarter of 2025, Alcon entered into stock purchase agreements and purchased additional non-controlling interests in Aurion. As a result, Alcon's fully diluted interest in Aurion increased from 85% on the business combination date to 99% as of December 31, 2025.

The below table summarizes movements in the non-controlling interests on a fully diluted basis from the acquisition date to the end of the reporting period.


($ millions unless indicated otherwise)	Non-controlling interests (%)		Non-controlling interests
Initial recognition at acquisition date	15	%	27
Changes in non-controlling interests	(14)	%	(26)
Non-controlling interests as of December 31, 2025	1	%	1

Profits and losses attributable to non-controlling interests are calculated on an outstanding basis.

Surgical - Acquisition of Cylite Pty Ltd.

On January 16, 2025, Alcon executed a stock purchase agreement and acquired approximately 91.2% of outstanding equity from Cylite shareholders, resulting in 100% ownership when combined with Alcon's existing 8.8% investment in Cylite. The Cylite diagnostic device complements Alcon’s existing Surgical portfolio for cataracts. The acquisition of the remaining equity interest was accounted for as a business combination that resulted in goodwill of $90 million after the final PPA of the consideration to the fair values of acquired assets and assumed liabilities. Total cash paid at closing, net of cash acquired, was $72 million.

The development milestone contingent consideration is related to a potential payment of up to $10 million upon achievement of the first commercial sale of a defined product within the United States. The contingent consideration recognized during the first quarter of 2025 represents its fair value (Level 3) at the acquisition date.

The acquisition date fair value of the equity interest previously held by Alcon was $14 million, resulting in a remeasurement fair value gain of $6 million in the first quarter of 2025. The fair value gain has been included in "Other income" in the 2025 Consolidated Income Statement.

The below table summarizes the PPA for the Cylite business combination which was finalized in the fourth quarter of 2025 without identifying any measurement period adjustment.


($ millions)			Final PPA
Property, plant and equipment			1
Right-of-use assets			1
Current marketed products			4
Acquired IPR&D			33
Inventories			1
Cash and cash equivalents			6
Other assets			1
Deferred tax liabilities			(11)
Lease liabilities			(1)
Trade payables			(1)
Provisions and other current liabilities			(1)
Net identifiable assets acquired			33
Goodwill			90
Net assets acquired as a result of business combination			123

Cash paid at closing			78
Cash expected to be paid after closing			2
Previously-held FVOCI financial investment			11
Previously-held commercialization rights in intangible assets			9
Contingent consideration			9
Previously-held investment in associated company			14
Total acquisition date fair value of consideration			123

Goodwill is attributable primarily to buyer-specific synergies, including benefits to intraocular lens sales, development collaboration arrangement and associated development timeline reduction and assembled workforce. The goodwill is not deductible for tax purposes.

Direct acquisition costs of $1 million were recognized in "Other expense" in the 2025 Consolidated Income Statement and were reported in operating cash flows in the 2025 Consolidated Statement of Cash Flows.

Pro forma financial information is not presented for the Cylite business acquisition as it is not material to the Consolidated Financial Statements.

For the period from the date of the Cylite acquisition, January 16, 2025, through December 31, 2025, the acquired business reduced Alcon's "Net income" by $15 million.

Surgical - Acquisition of BELKIN Vision Ltd.

On July 1, 2024, Alcon acquired 100% of the outstanding shares and equity of BELKIN as provided under the BELKIN Agreement. This transaction complements Alcon’s existing Surgical portfolio in the treatment of glaucoma. The acquisition was accounted for as a business combination that resulted in goodwill of $20 million after the PPA of the consideration to the fair values of acquired assets and assumed liabilities. The acquisition date fair value of the previously-held financial investments measured at FVOCI by Alcon was $20 million. Total cash paid at closing for the net identifiable assets recognized, net of cash acquired, was $61 million.

Under the BELKIN Agreement, there are additional amounts, up to $385 million, to be potentially paid upon achievement of certain commercial milestones if annual sales exceed defined targets within defined periods after closing. The contingent consideration recognized during the third quarter of 2024 totaled $6 million, which represents its fair value (Level 3) at the acquisition date.

The below table summarizes the PPA for the BELKIN business combination which was finalized in the third quarter of 2024.


($ millions)			Final PPA
Property, plant and equipment			1
Currently marketed products			75
Deferred tax assets			6
Inventories			3
Cash and cash equivalents			3
Other current assets			2
Deferred tax liabilities			(17)
Provisions and other current liabilities			(1)
Net identifiable assets acquired			72
Goodwill			20
Net assets acquired as a result of business combination			92


Cash paid at closing			64
Cash expected to be paid after closing			2
Previously-held FVOCI financial investments			20
Contingent consideration			6
Total acquisition date fair value of consideration			92

The goodwill is primarily attributable to buyer-specific synergies and assembled workforce. The goodwill is not deductible for tax purposes.

Direct acquisition costs of $1 million were recognized in "Other expense" in the 2024 Consolidated Income Statement and were reported in operating cash flows in the 2024 Consolidated Statement of Cash Flows.

Pro forma financial information is not presented for the BELKIN business acquisition as it is not material to the Consolidated Financial Statements.

For the period from the date of the BELKIN acquisition, July 1, 2024, through December 31, 2024, the acquired business increased Alcon's 2024 "Net sales" by $1 million and reduced Alcon's 2024 "Net income" by $4 million.

Proposed acquisition of LENSAR, Inc.

On March 23, 2025, Alcon entered into a definitive agreement to acquire all outstanding shares of LENSAR, Inc. ("LENSAR"), a global medical technology company focused on advanced laser solutions for the treatment of cataracts, with a total consideration of up to approximately $430 million. The planned acquisition will complement Alcon’s existing Surgical portfolio in the treatment of cataracts. The transaction is subject to customary closing conditions, including regulatory approval and is expected to close in the first half of 2026.

21.2 Acquisitions of assets

During 2025 and 2024, there were no acquisitions of assets recognized under IFRS 3, Business Combinations.

Acquisitions of assets in 2023 amounted to $2 million.

21.3 Divestment of product rights and out-licensing in China

On October 17, 2024, Alcon closed on a set of definitive agreements to divest its rights in China in favor of Ocumension to Bion Tears and Tears Naturale (reported in Vision Care segment) and procedural eye drops (reported in Surgical segment). Under the terms of the agreements, Ocumension licensed the exclusive commercialization rights to Systane Ultra in China and development and commercialization rights to AR-15512 in China. In exchange, Alcon received up-front consideration of $116 million in the form of approximately 16.7% of the ordinary shares of Ocumension, which Alcon is holding as a strategic investment and was designated at the closing date as Financial assets valued at FVOCI (Level 1). Related transaction costs of $2 million were also capitalized. Alcon will also receive royalties and defined AR-15512 sales milestones. There are additional amounts, up to $50 million, to be potentially received upon achievement of certain commercial milestones.

With the exception of Systane Ultra, the transaction was accounted for during the fourth quarter of 2024 as a divestment of product rights resulting in a net gain of approximately $57 million recognized in "Other income" in the 2024 Consolidated Income Statement. The net carrying value of the divested rights in China was approximately $2 million.

For Systane Ultra, the transaction will be accounted for as a supply agreement over the 15-year licensing term. The current and non-current portions of the up-front consideration allocated to the supply agreement, which amounted to $2 million and $54 million, respectively, were recorded as deferred income on the 2024 Consolidated Balance Sheet and will be recognized as "Other revenues" over the licensing term. Royalty revenues will be recognized in "Other revenues" in the Consolidated Income Statement as they are earned.

Post-employment benefits for associates

12 Months Ended

Dec. 31, 2025

Employee Benefits [Abstract]

Post-employment benefits for associates

Defined benefit plans

In addition to the legally required social security schemes, Alcon has sponsored numerous independent pension and other post-employment benefit plans. In most cases, these plans are externally funded in entities that are legally separate from Alcon. For certain subsidiaries, however, no independent plan assets exist for the pension and other post-employment benefit obligations of associates. In these cases the related unfunded liability is included in the Consolidated Balance Sheet. The value of the post-employment benefits promised under the pension and other post-employment benefit plans is represented by the defined benefit obligation ("DBO"), which is measured based on the PUC method. Independent actuaries reappraise the DBOs of all major pension and other post-employment benefit plans annually. Plan assets are recognized at fair value.

The major pension and other post-employment benefit plans are based in Switzerland, the United States, Germany and the United Kingdom. As of December 31, 2025, these plans represent 88% of Alcon's total DBO and are independently sponsored by Alcon. Details of the plans in those significant countries are provided below.

The principal plan in Switzerland is funded and open for new joiners. For the Swiss pension plan, active insured members' benefits are partially linked to the contributions paid into the plan. Certain features of the Swiss pension plan required by law preclude the plan from being categorized as a defined contribution plan. These factors include a minimum interest guarantee on retirement savings accounts, a pre-determined factor for converting the accumulated savings account balance into a pension and embedded death and disability benefits. All benefits granted under a Swiss-based principal pension plan are vested, and Swiss legislation prescribes that the employer has to contribute a fixed percentage of an associate's pay to an external pension trust. Additional employer contributions may be required whenever the foundation's statutory funding ratio falls below a certain level. The associate also contributes to the plan.

Alcon's Swiss pension obligation is set up under an Alcon-sponsored arrangement affiliated with Copré La Collective de Prévoyance ("Copré") – a Swiss collective foundation. As a collective foundation, Copré is governed by its own board of trustees which is responsible for the foundation regulations and asset investment strategy for multiple entities participating in the collective foundation. Alcon maintains its own pension committee, consisting of representatives nominated by Alcon and the active insured associates.

The principal plan in the United States (Qualified Plan) is funded, whereas the plans providing additional benefits for executives (Defined Benefit Restoration Plan and Grandfathered Supplemental Executive Plan) are unfunded. Benefits in the Qualified Plan and Restoration Plan are frozen for all participants. Employer contributions are required for the Qualified Plan whenever the statutory funding ratio falls below a certain level. Furthermore, the United States other post-employment benefit plans (US OPEB plans) represent 98% of the total DBO for other post-employment benefit plans. These benefits in the US primarily consist of post-employment healthcare which has been closed to new members since 2015. Effective January 1, 2021, the Alcon sponsored group health plan for current and future eligible retired participants age 65 and over utilizes a private Medicare marketplace while providing an annual notional contribution to a Health Reimbursement Account for each covered member and spouse. There is no statutory funding requirement for the US OPEB plans.

The major pension arrangements in Germany are governed by the Occupational Pensions Act ("BetrAVG"). The plans are partly funded by a Contractual Trust arrangement or direct insurances. The employer is responsible for contributing the premiums to the insurances and paying certain benefits when they are due. All defined benefit plans are closed for new entrants and the benefits are fully vested for all participants. For some participants the benefits are based on final salary and length of employment, and for others the benefit is earned each year based on the current salary in the year of service. Associates do not contribute towards the cost of the benefits.

The plan in the United Kingdom is closed with only former Alcon associates entitled to current or future benefits. The Alcon United Kingdom Pension Scheme is governed and administered by a board of trustees in accordance with its Trust Deed. United Kingdom legislation requires that pension schemes are funded prudently (i.e., to a level in excess of the "best estimate" expected cost of providing benefits). Funding is assessed on a triennial basis using assumptions agreed by the board of trustees and Alcon. The board of trustees is responsible for jointly agreeing with Alcon the level of contributions needed to eliminate any shortfall over a reasonable period of time. Under the governing documentation, if a surplus remains once liabilities have been settled it would be refunded to Alcon.

Alcon has certain pension plans with a surplus that are not recognized on the basis that future economic benefits are not available to the entity in the form of a reduction in future contributions or a cash refund.

The below table summarizes the funded and unfunded DBO for pension and other post-employment benefit plans of Alcon associates at December 31, 2025 and 2024.


	Pension plans		Other post-employment benefit plans
($ millions)	2025	2024	2025	2024
Benefit obligation at January 1	592	638	208	213
Current service cost	18	16	4	5
Interest cost	19	18	12	10
Past service costs and settlements	(1)	—	—	—
Administrative expenses	1	1	—	—
Remeasurement (gains)/losses arising from changes in financial assumptions	(7)	(14)	4	(6)
Remeasurement (gains) arising from changes in demographic assumptions	(1)	—	—	—
Remeasurement losses/(gains) arising from experience-related changes	10	5	(9)	1
Currency translation effects	49	(30)	—	—
Benefit payments	(41)	(47)	(17)	(19)
Contributions of associates	5	5	4	4

Benefit obligation at December 31	644	592	206	208
Fair value of plan assets at January 1	430	448	—	—
Interest income	13	11	—	—
Return on plan assets excluding interest income	17	13	—	—
Currency translation effects	36	(23)	—	—
Employer contributions	22	23	13	15
Contributions of associates	5	5	4	4
Settlements	—	—	—	—
Benefit payments	(41)	(47)	(17)	(19)

Fair value of plan assets at December 31	482	430	—	—
Funded status	(162)	(162)	(206)	(208)
Limitation on recognition of fund surplus at January 1	(30)	(25)
Change in limitation on recognition of fund surplus	(11)	(8)
Currency translation effects	—	3
Limitation on recognition of fund surplus at December 31	(41)	(30)
Net liability in the balance sheet at December 31	(203)	(192)	(206)	(208)

The reconciliation of the net liability from January 1 to December 31 is as follows:


	Pension plans		Other post-employment benefit plans
($ millions)	2025	2024	2025	2024
Net liability at January 1	(192)	(215)	(208)	(213)
Current service cost	(18)	(16)	(4)	(5)
Net interest expense	(6)	(7)	(12)	(10)
Past service costs and settlements	1	—	—	—
Administrative expenses	(1)	(1)	—	—
Remeasurements	15	22	5	5
Currency translation effects	(13)	10	—	—
Employer contributions	22	23	13	15

Change in limitation on recognition of fund surplus	(11)	(8)	—	—
Net liability at December 31	(203)	(192)	(206)	(208)

Amounts recognized in the balance sheet
Prepaid benefit cost	7	6	—	—
Accrued benefit liability	(210)	(198)	(206)	(208)

The below tables provide detail of the DBO for pension plans by geography and type of member and of plan assets based on the geographical locations in which they are held.


	2025
($ millions)	Switzerland	United States	Germany	United Kingdom	Rest of the world	Total
By type of member
Active	(268)	(26)	(39)	—	(82)	(415)
Deferred pensioners	(8)	(28)	(16)	(28)	(14)	(94)
Pensioners	(36)	(37)	(29)	(27)	(6)	(135)
Benefit obligation at December 31	(312)	(91)	(84)	(55)	(102)	(644)
Thereof: unfunded plans	47	22	—	—	19	88
Thereof: unfunded portion of funded plans	49	—	59	—	14	122
Prepaid benefit costs and assets subject to limitation on recognition of fund surplus	—	—	—	(5)	(43)	(48)
Fair value of plan assets at December 31	216	69	25	60	112	482
Funded status	(96)	(22)	(59)	5	10	(162)


	2024
($ millions)	Switzerland	United States	Germany	United Kingdom	Rest of the world	Total
By type of member
Active	(226)	(25)	(42)	—	(75)	(368)
Deferred pensioners	(8)	(29)	(16)	(26)	(14)	(93)
Pensioners	(33)	(38)	(26)	(27)	(7)	(131)
Benefit obligation at December 31	(267)	(92)	(84)	(53)	(96)	(592)
Thereof: unfunded plans	43	21	—	—	20	84
Thereof: unfunded portion of funded plans	43	1	63	—	7	114
Prepaid benefit costs and assets subject to limitation on recognition of fund surplus	—	—	—	(4)	(32)	(36)
Fair value of plan assets at December 31	181	70	21	57	101	430
Funded status	(86)	(22)	(63)	4	5	(162)

The below table shows the principal weighted average actuarial assumptions used for calculating defined benefit plans and other post-employment benefits of Alcon associates.


	Pension plans				Other post-employment benefit plans
	2025		2024		2025		2024
Discount rate	3.3	%	3.2	%	5.2	%	5.5	%
Expected rate of pension increase	0.9	%	1.0	%
Expected rate of salary increase	2.4	%	2.6	%
Interest on savings account	3.0	%	2.0	%
Current average life expectancy for a 65-year-old male (in years)	20		20		21		21
Current average life expectancy for a 65-year-old female (in years)	22		22		23		23

The below table shows additional details related to the weighted average discount rates for pension and other post-employment benefit plans for each significant country.


	Pension plans				Other post-employment benefit plans
	2025		2024		2025		2024
Switzerland	1.8	%	1.6	%
United States	5.0	%	5.4	%	5.2	%	5.5	%
Germany	4.3	%	3.5	%
United Kingdom	5.5	%	5.5	%

Changes in the aforementioned actuarial assumptions can result in significant volatility in the accounting for pension plans and other post-employment benefit plans in the Consolidated Financial Statements. This can result in substantial changes in Alcon's other comprehensive income, non-current liabilities and prepaid pension assets.

The DBO is significantly impacted by assumptions related to the rate used to discount the actuarially determined post-employment benefit liability. This rate is based on yields of high-quality corporate bonds in the country of the plan. Increasing corporate bond yields increase the discount rate. An increase in the discount rate results in a decrease in the DBO and an increase in the funded status.

The impact of increasing interest rates on a plan's assets is more difficult to predict. A significant part of plan assets is invested in bonds. Bond values typically are inversely correlated to interest rates. Bond values usually decrease when interest rates rise and may therefore partially offset the increase in the funded status. Furthermore, pension assets also include significant holdings of equity instruments. Share prices tend to fall when interest rates increase and therefore

often offset the positive impact of the decreasing DBO on the funded status (although the correlation of interest rates with returns on equities is not as strong as with bonds, especially in the short term).

The assumption for the expected rate for pension increases significantly affects the DBO of most plans in Switzerland, Germany and the United Kingdom. Such pension increases generally decrease the funded status, although there is no strong correlation between the value of the plan assets and pension/inflation increases.

The assumption for the expected rate for salary increases significantly affects the DBO by influencing projected future compensation levels used in determining benefit payments. A lower salary growth rate reduces projected benefits and results in a decrease to the DBO, while a higher assumed growth rate increases the DBO.

The assumption for the interest rate credited to savings accounts is a key driver of the DBO for cash balance plans, primarily in Switzerland and the United States. Higher assumed interest rates increase the annual interest credits allocated to participant account balances, which in turn accelerates benefit growth and increases the DBO.

Assumptions regarding life expectancy significantly impact the DBO. While the life expectancy assumption remained flat in the current year, generally an increase in longevity increases the DBO. There is no offsetting impact from the plan assets, as no longevity bonds or swaps are held by the pension funds. Generational mortality tables are used where this data is available.

The below table shows the sensitivity of the defined benefit pension and other post-employment benefit obligations to the principal actuarial assumptions as of December 31, 2025.


($ millions)			(Decrease)/increase in 2025 year-end liability
25 basis point increase in discount rate			(25)
25 basis point decrease in discount rate			26
1 year increase in life expectancy			16
25 basis point increase in rate of pension increase			8
25 basis point decrease in rate of pension increase(1)			(4)
25 basis point increase of interest on savings account			4
25 basis point decrease of interest on savings account			(4)
25 basis point increase in rate of salary increase			3
25 basis point decrease in rate of salary increase			(3)

(1)Decrease in rate of pension increase is limited to zero.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes of the assumptions may be correlated. When calculating the sensitivity of the DBO to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the PUC method at the end of the reporting period) has been applied as when calculating the net liability recognized in the Consolidated Balance Sheet.

The below table summarizes the healthcare cost trend rate assumptions used for other post-employment benefits.


	2025		2024		2023
Healthcare cost trend rate assumed for next year	6.7	%	7.0	%	6.0	%
Rate to which the cost trend rate is assumed to decline	4.5	%	4.5	%	4.5	%
Year that the rate reaches the ultimate trend rate	2035		2035		2030

The below table shows the weighted average plan asset allocation of funded defined benefit pension plans at December 31, 2025, and 2024.


	Pension plans
(as a percentage)	Long-term target minimum	Long-term target maximum	2025	2024
Equity securities	15	40	31	33
Debt securities	20	60	43	40
Real estate	5	20	11	11
Alternative investments	—	20	13	13
Cash and other investments	—	15	2	3
Total			100	100

Cash and most of the equity and debt securities have a quoted market price in an active market. Real estate and alternative investments, which include hedge fund and private equity investments, usually do not have a quoted market price.

The strategic allocation of assets of the different pension plans is determined with the objective of achieving an investment return that, together with employer contributions and contributions of associates (where applicable), is sufficient to manage the various funding risks of the plans. Based upon the market and economic environments, actual asset allocations may temporarily be permitted to deviate from policy targets.

The weighted average duration of the DBO is 12.1 years and 12.0 years as of December 31, 2025 and December 31, 2024, respectively.

Alcon's ordinary contribution to the various pension plans is based on the rules of each plan and its respective country. Additional contributions are made whenever required by local statute or law (i.e., usually when statutory funding levels fall below predetermined thresholds).

The below table summarizes expected employer contributions for one year and expected future benefit payments for ten years for pension and other post-employment benefit plans as of December 31, 2025.


($ millions)	Pension plans	Other post-employment benefit plans
Employer contributions
2026 (estimated)	11	—
Expected future benefit payments
2026	41	16
2027	37	17
2028	38	18
2029	42	19
2030	44	19
2031-2035	220	89

Defined contribution plans

In many countries, associates are covered by defined contribution plans. Contributions charged to the 2025 Consolidated Income Statement for the defined contribution plans were $161 million (2024: $153 million; 2023: $151 million).

Equity-based compensation

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangements [Abstract]