Second-Quarter 2026 Earnings Call Regulatory Filing

INDEX Page

Operating Performance 2

Liquidity and Capital Resources 10

Condensed Consolidated Interim Financial Statements of Alcon Inc. (unaudited)

Consolidated Income Statement 14

Consolidated Statement of Comprehensive (Loss)/Income 15

Consolidated Balance Sheet 16

Consolidated Statement of Changes in Equity 17

Consolidated Statement of Cash Flows 18

Notes to Condensed Consolidated Interim Financial Statements of Alcon Inc. 19

Disclaimer 35

Three months ended June 30 Six months ended June 30

1. Earnings per share is calculated on the amount of net income attributable to shareholders of Alcon Inc. Per share amounts may not add across quarters due to rounding.

   Net sales by segment

   Three months ended June 30 Six months ended June 30

   ($ millions unless indicated otherwise)	2026	2025	Change %	2026	2025	Change %
   Surgical
   Implantables	466	456	2	904	876	3
   Consumables	825	777	6	1,594	1,489	7
   Equipment/other	279	222	26	532	421	26
   Total Surgical	1,570	1,455	8	3,030	2,786	9
   Vision Care
   Contact lenses	726	692	5	1,464	1,380	6
   Ocular health	486	430	13	973	862	13
   Total Vision Care	1,212	1,122	8	2,437	2,242	9
   Net sales	2,782	2,577	8	5,467	5,028	9

   Second quarter

   Surgical

   Surgical net sales were $1.6 billion, an increase of 8%, including favorable currency impacts of 1%.

   • Implantables net sales were $466 million, an increase of 2%, including favorable currency impacts of 1%. This growth was driven by an increase in IOLs of 3%, primarily driven by the strong performance of PanOptix Pro and reflecting competitive pressures, partially offset by lower sales in surgical glaucoma.

   • Consumables net sales were $825 million, an increase of 6%, including favorable currency impacts of 1%. Growth was driven by procedural growth and price increases with continued softness in the cataract market.

   • Equipment/other net sales were $279 million, an increase of 26%, including favorable currency impacts of 1%. This growth was led by recent equipment launches, including the Unity platform.

     Vision Care

     Vision Care net sales were $1.2 billion, an increase of 8%, including favorable currency impacts of 1%.

   • Contact lenses net sales were $726 million, an increase of 5%. This growth reflects product innovation and price increases, partially offset by declines in legacy products.

   • Ocular health net sales were $486 million, an increase of 13%, including favorable currency impacts of 1%. Growth was led by our portfolio of dry eye products, including Tryptyr and Systane.

     First half

     Surgical

     Surgical net sales were $3.0 billion, an increase of 9%, including favorable currency impacts of 2%.

   • Implantables net sales were $904 million, an increase of 3%, including favorable currency impacts of 2%. This growth was driven by an increase in IOLs of 4%, primarily driven by the strong performance of PanOptix Pro and reflecting competitive pressures, partially offset by lower sales in surgical glaucoma.

   • Consumables net sales were $1.6 billion, an increase of 7%, including favorable currency impacts of 2%. Growth was driven by procedural growth and price increases with continued softness in the cataract market.

   • Equipment/other net sales were $532 million, an increase of 26%, including favorable currency impacts of 2%. This growth was led by recent equipment launches, including the Unity platform.

     Vision Care

     Vision Care net sales were $2.4 billion, an increase of 9%, including favorable currency impacts of 2%.

   • Contact lenses net sales were $1.5 billion, an increase of 6%, including favorable currency impacts of 2%. This growth reflects product innovation and price increases, partially offset by declines in legacy products.

   • Ocular health net sales were $973 million, an increase of 13%, including favorable currency impacts of 2%. Growth was led by our portfolio of dry eye products, including Tryptyr and Systane.

Three months ended June 30 Six months ended June 30

Operating income was $11 million (-96%), compared to $247 million in the prior year period. Operating margin decreased

9.2 percentage points. The current year period included an impairment charge of $505 million, partially offset by

$103 million for a fair value adjustment to contingent consideration liabilities, related to the discontinuation of the IOL programs acquired from PowerVision, Inc. in March 2019 ("PowerVision programs"), costs associated with efficiency measures and sales and marketing behind new product launches, partially offset by lower amortization, manufacturing efficiencies, $15 million of other revenue from a licensee and a positive 0.1 percentage point impact from currency. The prior year period included charges related to the discontinued commercialization of a Vision Care product and higher inventory-related costs.

Operating income was $303 million (-58%), compared to $715 million in the prior year period. Operating margin decreased

8.7 percentage points. The current year period included an impairment charge of $505 million, partially offset by

$103 million for a fair value adjustment to contingent consideration liabilities, related to the discontinuation of the PowerVision programs, costs associated with efficiency measures, sales and marketing behind new product launches, impairment charges related to a currently marketed product intangible asset and incremental tariffs, partially offset by lower amortization, manufacturing efficiencies and a positive 0.4 percentage point impact from currency. The prior year period included gains on fair value remeasurements of investments in associated companies, partially offset by charges related to the discontinued commercialization of a Vision Care product.

For additional information regarding segment contribution, please refer to Note 3 to the Condensed Consolidated Interim Financial Statements.

Three months ended June 30 Six months ended June 30

Surgical

Surgical segment contribution was $392 million (+4%), compared to $378 million in the prior year period. Segment contribution margin decreased 1.0 percentage points, primarily driven by unfavorable product mix, incremental tariffs and sales and marketing behind new product launches, partially offset by a positive 0.3 percentage point impact from currency. The prior year period included higher inventory-related costs.

Vision Care

Vision Care segment contribution was $283 million (+36%), compared to $208 million in the prior year period. Segment contribution margin increased 4.8 percentage points, primarily due to manufacturing efficiencies, $15 million of other revenue from a licensee, lower impact from tariffs, favorable product mix and price increases. The increase in segment contribution margin was partially offset by increased investment in research and development, sales and marketing behind new product launches and a negative 0.4 percentage point impact from currency.

Not allocated to segments

Operating loss not allocated to segments totaled $664 million (-96%), compared to $339 million in the prior year period. The current year period included an impairment charge of $505 million, partially offset by $103 million for a fair value adjustment to contingent consideration liabilities, related to the discontinuation of the PowerVision programs. The prior year period included higher amortization of intangible assets and $44 million of product discontinuation charges.

Surgical

Surgical segment contribution was $759 million (+6%), compared to $714 million in the prior year period. Segment contribution margin decreased 0.6 percentage points, primarily driven by unfavorable product mix, sales and marketing behind new product launches and incremental tariffs, partially offset by a positive 0.3 percentage point impact from currency.

Vision Care

Vision Care segment contribution was $577 million (+18%), compared to $489 million in the prior year period. Segment contribution margin increased 1.9 percentage points, primarily due to manufacturing efficiencies, price increases and $15 million of other revenue from a licensee. The increase in segment contribution margin was partially offset by increased investment in research and development, sales and marketing behind new product launches, and a negative 0.2 percentage point impact from currency.

Not allocated to segments

Operating loss not allocated to segments totaled $1.0 billion (-112%), compared to $488 million in the prior year period. The current year period included an impairment charge of $505 million, partially offset by $103 million for a fair value adjustment to contingent consideration liabilities, related to the discontinuation of the PowerVision programs, $121 million of costs associated with efficiency measures and $38 million of impairment charges related to a currently marketed product intangible asset. The prior year period included gains of $142 million on fair value remeasurements of investments in associated companies, partially offset by higher amortization of intangible assets and $44 million of product discontinuation charges.

Three months ended June 30 Six months ended June 30

nm = not meaningful

(1) Earnings per share is calculated on the amount of net income attributable to shareholders of Alcon Inc. Per share amounts may not add across quarters due to rounding.

Interest expense

Interest expense was $53 million, broadly in line with the prior year period.

Other financial income & expense

Other financial income & expense was $0 million, compared to a net benefit of $4 million in the prior year period, primarily driven by an increase in foreign currency exchange losses.

Share of loss from associated companies

Share of loss from associated companies was $4 million, compared to $1 million in the prior year period, reflecting Alcon's investment in associated companies during the year.

Taxes

There was a tax benefit of $46 million in the current year period, compared to a tax expense of $23 million in the prior year period. The current year tax benefit was primarily driven by the reversal of deferred tax liabilities of $115 million related to the discontinuation of the PowerVision programs. The prior year period included a more favorable mix of pretax income/(loss) across geographical tax jurisdictions and a net benefit from discrete tax items.

Net income and earnings per share

Net income attributable to shareholders of Alcon Inc. was $0 million, compared to $176 million in the prior year period, primarily as a result of a post-tax, non-cash net charge of approximately $287 million related to the discontinuation of the PowerVision programs. The associated basic and diluted earnings per share were $0.00, compared to basic and diluted earnings per share of $0.36 and $0.35, respectively, in the prior year period.

First half

Interest expense

Interest expense was $105 million, compared to $100 million in the prior year period, primarily driven by higher interest expense from accretion of long-term contingent consideration liabilities and higher interest expense on lease liabilities.

Other financial income & expense

Other financial income & expense was a net benefit of $2 million, compared to $13 million in the prior year period, primarily driven by lower interest income and an increase in foreign currency exchange losses.

Share of loss from associated companies

Share of loss from associated companies was $6 million, compared to $15 million in the prior year period, reflecting Alcon's investment in associated companies during the year.

Taxes

Tax expense was $5 million, compared to $87 million in the prior year period. The average tax rate was 2.6%, compared to 14.2% in the prior year period. The average tax rate in the current year period was impacted by a $115 million tax benefit from the reversal of deferred tax liabilities related to the discontinuation of the PowerVision programs. The average tax rate in the prior year period included a non-taxable gain on the fair value remeasurement of an investment in an associated company and net benefits from discrete tax items.

Net income and earnings per share

Net income attributable to shareholders of Alcon Inc. was $189 million, compared to $526 million in the prior year period, primarily due to a post-tax, non-cash net charge of approximately $287 million related to the discontinuation of the PowerVision programs and costs associated with efficiency measures. The prior year period included gains of $142 million on fair value remeasurements of investments in associated companies. The associated basic and diluted earnings per share were $0.39, compared to basic and diluted earnings per share of $1.06 in the prior year period.

Net cash flows from operating activities amounted to $928 million in the first six months of 2026, compared to $889 million in the prior year period. The current year period reflects increased collections associated with higher sales, lower associate short-term incentive payments, partially offset by increased payments for operating expenses, including sales and marketing behind new product launches, incremental tariffs, increased research and development, higher payments for revenue deductions and a higher impact from changes in net working capital. In addition, the current year period included payments associated with efficiency measures announced in February 2026.

Changes in net working capital in the current year period were mainly driven by increases in inventories and trade receivables, the net change in other operating assets and the net change in other operating liabilities, partially offset by an increase in trade payables. The increase in inventories was primarily to meet expected upcoming demand and the increase in trade receivables was primarily driven by new receivables from higher sales outpacing collections. The net change in other operating assets was primarily driven by increases in prepaid expenses and long-term receivables. The net change in other operating liabilities was primarily due to the impact of annual short-term incentive payments. The increase in trade payables was primarily driven by the timing of payments and raw materials purchases.

Changes in net working capital in the prior year period were mainly driven by an increase in trade receivables, the net change in other operating liabilities and an increase in inventories, partially offset by an increase in trade payables. The increase in trade receivables was primarily driven by new receivables from higher sales outpacing collections. The net change in other operating liabilities was primarily driven by the timing of annual associate short-term incentive payments, and were higher than in the current year period. The increase in inventories was primarily to meet expected upcoming demand. The increase in trade payables was primarily driven by the timing of payments and raw materials purchases.

Net cash flows used in investing activities amounted to $440 million in the first six months of 2026, compared to $732 million in the prior year period. Cash outflows in the current year period primarily include capital expenditures, purchases of intangible assets, the purchase of a time deposit in the second quarter of 2026 and payments for financial assets, partially offset by proceeds from a time deposit which matured in April 2026.

Cash outflows in the prior year period primarily included the acquisition of a majority interest in Aurion Biotech, Inc. ("Aurion"), the acquisition of Cylite Pty Ltd. ("Cylite"), capital expenditures and purchases of intangible assets, primarily related to software, partially offset by proceeds from a time deposit which matured in February 2025. Refer to Note 12 to the Condensed Consolidated Interim Financial Statements for additional information on the Aurion and Cylite transactions.

Net cash flows used in financing activities amounted to $643 million in the first six months of 2026, compared to $479 million in the prior year period. Cash outflows in the current year period primarily include payments for the acquisition of treasury shares, dividends paid to shareholders of Alcon Inc., withholding taxes paid upon net settlements of equity-based compensation, lease payments and realized foreign exchange losses.

Cash outflows in the prior year period primarily included dividends paid to shareholders of Alcon Inc., payments for the acquisition of treasury shares, realized foreign exchange losses, withholding taxes paid upon net settlements of equity-based compensation and lease payments.

Total non-current assets were $24.5 billion as of June 30, 2026, a decrease of $632 million when compared to $25.1 billion as of December 31, 2025. Intangible assets other than goodwill decreased $736 million primarily due to asset impairments, including a $505 million impairment related to the discontinuation of the PowerVision programs, and recurring amortization, partially offset by additions.

Total current assets were $6.6 billion as of June 30, 2026, an increase of $175 million when compared to $6.4 billion as of December 31, 2025. Trade receivables increased $137 million due to higher sales outpacing collections, partially offset by foreign currency translation effects. Inventories increased $119 million primarily due to increases to meet expected upcoming demand, partially offset by foreign currency translation effects. Cash and cash equivalents decreased $172 million due to the net impact of operating, investing and financing activities as described in the preceding section. Our cash and cash equivalents are maintained at a number of financial institutions. To mitigate the risk of uninsured balances, we select financial institutions based on their credit ratings and financial strength, and we perform ongoing evaluations of these institutions to limit our concentration risk exposure.

Total non-current liabilities were $6.3 billion as of June 30, 2026, a decrease of $136 million when compared to $6.5 billion as of December 31, 2025. Deferred tax liabilities decreased $100 million primarily related to the release of deferred tax liabilities associated with the discontinuation of the PowerVision programs. Provisions & other non-current liabilities decreased $93 million primarily due to a fair value adjustment to contingent consideration liabilities associated with the discontinuation of the PowerVision programs.

Total current liabilities were $3.2 billion as of June 30, 2026, an increase of $118 million when compared to $3.0 billion as of December 31, 2025.

The average maturity of financial debts outstanding as of June 30, 2026 is 8.3 years, and 97% of Alcon's financial debt is at fixed interest rates. We believe that we have adequate liquidity to meet our needs.

The $1.32 billion revolving credit facility remained undrawn as of June 30, 2026 and August 10, 2026.

Equity was $21.6 billion as of June 30, 2026, a decrease of $439 million when compared to $22.0 billion as of December 31, 2025.

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. On March 16, 2026, Alcon entered into an agreement with LENSAR to terminate the previously announced merger agreement.

Ongoing geopolitical conflicts in the Middle East have contributed to increased regional and global political and economic uncertainty. These conflicts, together with related government actions, sanctions, trade restrictions, and retaliatory measures, could adversely impact net sales, create disruptions in global supply chains, increase the risk of cyber attacks, and potentially have an adverse effect on the global economy, financial markets, energy markets, commodity prices, currency exchange rates, and otherwise. As a result of broader global impacts, we have experienced, and may continue to experience, volatility in currency translation effects.

For the six months ended June 30, 2026, net sales in countries impacted within the Middle East region were approximately 2% of consolidated net sales. As of June 30, 2026, our operations in the region continued operating to the extent practicable and permitted by law.

On February 24, 2026, Alcon announced certain efficiency measures supported by operational improvements and infrastructure investments. Alcon estimates the total cost to implement these efficiency measures to be approximately

$150 million and expects the implementation to be completed in 2026. Related expenses totaled $33 million and $121 million for the three and six months ended June 30, 2026, respectively.

Beginning in February 2025, the United States government announced additional tariffs on goods imported into the United States, and some nations have responded with retaliatory tariffs and other actions on U.S. products. Global trade policy continues to evolve and the ultimate impact of developments with respect to U.S. tariffs remains unclear. On February 20, 2026, the U.S. Supreme Court struck down one set of tariffs (i.e., the tariffs imposed under the International Emergency Economic Powers Act ("IEEPA")). As a result of this ruling, importers may be entitled to recover IEEPA-based tariffs. Immediately following the Supreme Court's ruling, the U.S. government imposed a temporary 10% global tariff on most imports effective February 24, 2026 under Section 122 of the Trade Act of 1974, which was valid for up to 150 days and expired on July 24, 2026. Immediately after the Section 122 tariffs expired, the U.S. government imposed new tariffs under Section 301 of the Trade Act of 1974, which imposes tariffs ranging from 10% to 12.5% on imports from 86 countries.

Furthermore, following the Supreme Court's decision, the U.S. Court of International Trade ("CIT") subsequently ordered the U.S. Customs and Border Protection ("CBP") to issue refunds to importers who paid IEEPA tariffs. To respond to the CIT's order, the CBP created the Consolidated Administration and Processing for Entries ("CAPE") framework to process IEEPA tariff refund requests. The CAPE framework only provides a refund mechanism for certain entries on which IEEPA tariffs were paid. In June 2026, the U.S. Department of Justice appealed the portion of the CIT order that required the government to refund IEEPA tariffs on entries that have liquidated and become final (i.e., entries liquidated for more than 90 days) for non-participants in the underlying CIT litigation.

The total amount Alcon paid in IEEPA tariffs as of June 30, 2026 is approximately $64 million. As of June 30, 2026, Alcon submitted a refund claim through the CAPE framework for certain IEEPA tariffs. The timing, amount and ultimate realization of any refunds was uncertain and subject to governmental processes as of June 30, 2026. As a result, Alcon has not recorded any potential refunds on the Condensed Consolidated Balance Sheet as of June 30, 2026. After June 30, 2026 and as of August 10, 2026, the CBP completed its review of certain import entries encompassed by Alcon's IEEPA refund claim and has begun transmitting refunds. The timing, amount, and ultimate realization of any remaining IEEPA refunds is uncertain.

Tariffs incurred in the United States under IEEPA and Section 122 and in China during the six months ended June 30, 2026 amounted to $39 million, which was recognized in Cost of net sales in the Condensed Consolidated Income Statement.

The future effects of the above-referenced tariffs, along with any further changes in trade policies including additional tariffs, are uncertain and could have an adverse effect on our business, financial condition, cash flows and results of operations. Further, adverse economic conditions impacting our customers or uncertainty about global economic conditions could cause purchases of our products to decline, which would adversely affect our net sales and operating results.

Refer to "Item 3. Key Information-3.D. Risk Factors-Changing economic and financial environments in many countries and increasing global political and social instability may adversely impact our business" in the 2025 form 20-F.

On May 5, 2026, the Alcon Board of Directors authorized the repurchase of up to $1.5 billion of the Company's common shares, par value of CHF 0.04 per share, on a second trading line with the SIX Swiss Exchange. The shares to be acquired under this share buyback program will be cancelled as a return of capital to shareholders.

Alcon expects to fund the program through cash generated from operations. The program is subject to customary safe harbor conditions and authorization of the Swiss Takeover Board. The timing and total amount of share repurchases and cancellations will depend upon a variety of factors. The program is expected to be completed over a three-year period, but may be suspended or discontinued at any time. Refer to Note 4 to the Condensed Consolidated Interim Financial Statements for details on share repurchase activity for the six months ended June 30, 2026.

In August 2026, following the review of the latest clinical study data, Alcon made the decision to discontinue the PowerVision programs. Alcon considered the decision to discontinue the PowerVision programs to be an impairment indicator as of June 30, 2026 for the related intangible asset and, as a result of the impairment assessment, recorded a non-cash impairment charge of $505 million, representing the asset's full carrying value, in Research & development in the Condensed Consolidated Income Statement. The discontinuation of the PowerVision programs also resulted in a fair value adjustment of $103 million to contingent consideration liabilities in Provisions & other non-current liabilities and recognized in Research & development in the Condensed Consolidated Income Statement. In addition, there was a $115 million reversal of Deferred tax liabilities and recognized in Taxes in the Condensed Consolidated Income Statement. Refer to Note 5 and 7 to the Condensed Consolidated Interim Financial Statements for details.

We use the US Dollar as our reporting currency and are therefore also exposed to foreign currency exchange movements and costs to enter hedging agreements, primarily in Euros, Japanese Yen, Chinese Renminbi, Canadian Dollars, Singaporean Dollars, Swiss Francs, Russian Rubles and emerging market currencies. The foreign currency exposure on the balance sheet is hedged with limited exception, but the impact of ongoing macroeconomic conditions is currently unknown and could have a material adverse effect on our results of operations, cash flows or financial condition.

Three months ended June 30

Six months ended June 30

1. Earnings per share is calculated on the amount of net income attributable to shareholders of Alcon Inc. The accompanying Notes form an integral part of the Condensed Consolidated Interim Financial Statements.

Three months ended June 30

Six months ended June 30

($ millions) 2026 2025 2026 2025

Net income - 176 189 526

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

Currency translation effects, net of taxes(1) (12) 141 (43) 194

Total of items to eventually recycle (12) 141 (43) 194

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

Actuarial gains/(losses) from defined benefit plans, net of taxes(2) 3 (3) 5 5

Fair value adjustments on equity investments, net of taxes(3) (99) 51 (98) 63

Total of items never to be recycled (96) 48 (93) 68

Total comprehensive (loss)/income (108) 365 53 788

Total comprehensive (loss)/income for the period attributable to:

Shareholders of Alcon Inc. (108) 365 53 788

Non-controlling interests - - - -

1. Amount is net of tax benefit of $0.5 million for the three months ended June 30, 2026. Amount is net of tax expense of $2 million for the three months ended June 30, 2025. Amount is net of tax benefit of $2 million for the six months ended June 30, 2026. Amount is net of tax expense of $3 million for the six months ended June 30, 2025.

2. Amount is net of tax expense of $0.6 million for the three months ended June 30, 2026. Amount is net of tax benefit of $0.6 million for the three months ended June 30, 2025. Amounts are net of tax expense of $2 million and $1 million for the six months ended June 30, 2026 and 2025, respectively.

3. Amount is net of tax benefit of $10 million for the three months ended June 30, 2026. Amount is net of tax expense of $8 million for the three months ended June 30, 2025. Amount is net of tax benefit of $10 million for the six months ended June 30, 2026. Amount is net of tax expense of $10 million for the six months ended June 30, 2025.

The accompanying Notes form an integral part of the Condensed Consolidated Interim Financial Statements.

The accompanying Notes form an integral part of the Condensed Consolidated Interim Financial Statements.

Attributable to shareholders of Alcon Inc.

($ millions)

Share capital

Other reserves

Fair value adjustments on

equity investments

Actuarial gains from defined benefit plans

Cumulative currency translation

effects

Total value adjustments(1) Total

Non-controlling interests

Total equity

Attributable to shareholders of Alcon Inc.

($ millions)

Share capital

Other reserves

Fair value adjustments on

equity investments

Actuarial gains from defined benefit plans

Cumulative currency translation

effects

Total value adjustments(1) Total

Non-controlling interests

Total equity

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

2. Activity includes hyperinflationary accounting. For the six months ended June 30, 2025, Other reserves also includes the reversal of previously-recognized deferred tax and a reclassification related to the settlement of an equity investment.

The accompanying Notes form an integral part of the Condensed Consolidated Interim Financial Statements.

The accompanying Notes form an integral part of the Condensed Consolidated Interim Financial Statements.

1. Selected accounting policies Basis of preparation

   These Condensed Consolidated Interim Financial Statements for Alcon Inc. ("the Company") and the subsidiaries it controls (collectively, "Alcon") have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB") and with the accounting policies as described in Note 2 to the December 31, 2025 Consolidated Financial Statements in the Company's 2025 Form 20-F ("Form 20-F").

   These Condensed Consolidated Interim Financial Statements do not include all of the information required for a complete set of International Financial Reporting Standards ("IFRS") financial statements. The financial information consolidates the Company and the subsidiaries it controls, and includes selected notes to explain events and transactions that are significant to an understanding of the changes in Alcon's financial position and performance since the prior annual Consolidated Financial Statements. For non-wholly owned subsidiaries, non-controlling interests are recognized to reflect the portion of equity that is not attributable, directly or indirectly, to shareholders of the Company. The Condensed Consolidated Interim Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2025, which have been prepared in accordance with IFRS as issued by the IASB ("IFRS Accounting Standards") and can be found in the Form 20-F.

   The accompanying Condensed Consolidated Interim Financial Statements present our historical financial position, results of operations, comprehensive (loss)/income and cash flows in accordance with IFRS Accounting Standards. Alcon's principal accounting policies are set out in Note 2 to the Consolidated Financial Statements in the Form 20-F.

   Use of estimates and assumptions

   The preparation of Condensed Consolidated Interim 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.

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

   As discussed in Note 2 to the Consolidated Financial Statements in the Form 20-F, Goodwill, the Alcon brand name and acquired in-process research & development ("IPR&D") projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever events or changes in circumstance indicate that the asset's balance sheet or reportable segment carrying amount may not be recoverable. Goodwill and other intangible assets represent a significant amount of total assets on the Consolidated Balance Sheet. Impairment testing may lead to potentially significant impairment charges in the future, which could have a materially adverse impact on Alcon's results of operations and financial condition.

   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 five categories (operating, investing, financing, income taxes and discontinued operations) and defined subtotals and totals ("operating profit or loss", "profit or loss before financing and income taxes" and "profit or loss") in the Consolidated Income Statement, requiring disclosures in the notes to the financial statements about management-defined performance measures and adding new principles for aggregation and disaggregation of information in the primary financial statements and notes. 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 five categories of 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 June 30, 2026 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.

2. Significant transactions

Significant transactions in 2026

There were no significant transactions during the first half of 2026.

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.

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. Additionally, during 2025, Alcon acquired certain non-controlling interests in Aurion. When combined with Alcon's existing 40.3% investment in Aurion, the transaction resulted in 99% ownership of Aurion on an outstanding and fully diluted basis. 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. 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 12 for additional information and final PPA.