Alcon Inc. (ALC) saw its shares plummet 5.22% in after-hours trading on Tuesday following the release of its first-quarter 2025 financial results that fell short of analyst expectations and a reduction in its full-year guidance.
The eye care company reported Q1 adjusted earnings per share of $0.73, missing the consensus estimate of $0.75. Revenue for the quarter came in at $2.45 billion, below the expected $2.51 billion. Alcon's core operating margin declined to 20.8% from 22.0% in the same period last year, reflecting increased investment in research and development.
Adding to investor concerns, Alcon lowered its 2025 outlook, revising its core operating margin guidance to 20-21% from the previous 21-22%. The company also reduced its core diluted EPS forecast to $3.05-$3.15, down from $3.15-$3.25 previously. CEO David J. Endicott cited a "soft US market" as a challenge, though he expressed optimism about recent product launches, including Unity VCS and PanOptix Pro, which are expected to accelerate growth in the second half of 2025.