Alcon Shares Plunge 3.33% on Two-Day Slide as Earnings Miss and STAAR Acquisition Dispute Weigh

Alcon (ALC) shares fell 0.27% on Tuesday, marking the second consecutive day of declines, with the stock now down 3.33% over the past two days. The price dipped to its lowest level since February 2024, with an intraday drop of 0.59%, reflecting growing investor concerns over recent corporate developments and market conditions.

The proposed $1.5 billion acquisition of STAAR Surgical has become a contentious issue, with Broadwood Partners, a major STAAR shareholder, publicly opposing the deal. Broadwood argues the offer undervalues STAAR and raises doubts about Alcon’s integration strategy. While STAAR’s board supports the merger, the lack of competing bids has created uncertainty, prompting investors to price in potential delays or legal challenges. This strategic ambiguity has weighed heavily on market sentiment.

Alcon’s Q2 2025 earnings results further fueled the sell-off, as the company reported revenue below both guidance and analyst expectations. Weak demand in the Vision Care and Surgical segments, compounded by U.S. trade tariffs, pressured margins and forced a downward revision of full-year sales and EPS forecasts. Analysts from J.P. Morgan and UBS downgraded price targets, citing integration risks and macroeconomic headwinds. The company’s revised guidance to $10.3–10.4 billion in annual revenue underscored near-term challenges in maintaining growth momentum.

Strategic initiatives, such as the formation of OpZira Inc. through the acquisition of LumiThera, aim to expand Alcon’s biotech capabilities, but their impact on near-term profitability remains limited. While product launches like Tryptyr and the UNITY VCS system highlight innovation, investors remain skeptical about their ability to offset current pressures. The STAAR acquisition, if completed, could bolster Alcon’s premium intraocular lens market position, yet ongoing shareholder disputes cast doubt on its execution timeline.

Broader macroeconomic factors, including rising interest rates and healthcare sector volatility, have compounded Alcon’s struggles. U.S. trade policies and inflationary pressures have dampened consumer spending, particularly in discretionary segments like contact lenses and surgical procedures. Analysts note that Alcon’s exposure to these trends will require disciplined cost management and operational efficiency to navigate the challenging environment.