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1 Fourth-Quarter and Full-Year 2025 Results February 24, 2026
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2 Forward-looking statements This document contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our 2026 outlook, liquidity, revenue, revenue growth, gross margin, operating margin, core operating margin, core operating margin growth, effective tax rate, foreign currency exchange movements, tariff impact, nonoperating expenses, earnings per share, earnings per share growth, operating cash flow, free cash flow, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our market growth assumptions, our social impact and sustainability plans, targets, goals and expectations, and generally, our expectations concerning our future performance. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict such as: cybersecurity breaches and technology failures that could disrupt operations; our ability to effectively manage the risks associated with transformational information technology changes such as the ethical use of artificial intelligence and disruptive technologies and the migration to cloud-based platforms; compliance with data privacy, identity protection and information security laws, particularly with the increased use of artificial intelligence; the impact of a disruption in our global supply chain, including the effect of tariffs, or important facilities, particularly when we single-source or rely on limited sources of supply; our reliance on outsourcing key business functions; the increasingly challenging economic, political and legal environment in China; global and regional economic, financial, monetary, legal, tax, political and social change; our ability to comply with anti-corruption, anti-bribery, export control, trade sanction, or similar laws; our ability to attract and retain qualified personnel; our ability to manage the risks associated with operating as a third party contract manufacturer; our success in completing strategic acquisitions, including equity investments in early-stage companies, on favorable terms or at all, and in integrating acquired businesses; the success of our research and development efforts, including our ability to innovate to compete effectively; our ability to manage the rapid evolution and adoption of artificial intelligence; terrorism, war and similar events; our ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers; pricing pressure from changes in third party payor coverage and reimbursement methodologies; our ability to comply with all laws to which we may be subject; the ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing; the effect of product recalls or voluntary market withdrawals; our ability to manage social impact and sustainability matters; our ability to properly educate and train healthcare providers on our products; our ability to protect our intellectual property; the accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets, and the adequacy of our financial reporting, accounting practices and internal controls; our ability to service our debt obligations; the need for additional financing through the issuance of debt or equity; the effects of litigation, including product liability lawsuits and governmental investigations; legislative, tax and regulatory reform; the impact of being listed on two stock exchanges; the ability to declare and pay dividends; the different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; the effect of maintaining or losing our foreign private issuer status under US securities laws; and the ability to enforce US judgments against Swiss corporations. Additional factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this press release speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise. We also undertake no obligation to update the 2026 outlook as circumstances evolve. Intellectual property This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a "®" or a "™" are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners. Non-IFRS measures Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures. Safe harbor
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3 3 Agenda Sales Core results 01 03 04 Outlook IFRS results 02 05 Select financial highlights
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4 4Q25 Sales of $2.7B, up 9% y/y on a reported basis; up 7% cc1 4Q25 Operating margin of 11.6%, down 430 basis points (bps) y/y; down 510 bps cc2 4Q25 Core operating margin of 19.0%, down 110 bps y/y; down 160 bps cc 4Q25 Diluted EPS of $0.44 4Q25 Core diluted EPS of $0.78 FY25 Cash from operating activities of $2.3 billion FY25 Free cash flow of $1.7 billion Net sales 1. Constant currency, core operating margin, core diluted EPS and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 2. 4Q25 included $22 million of acquisition and integration related items. 4Q24 included a $57 million net gain related to the divestment of certain product rights in China. Select financial highlights Core operating margin1 Core diluted EPS1 Free cash flow1 $2.7B $2.5B 4Q25 4Q24 19.0% 20.1% 4Q25 4Q24 $0.78 $0.72 4Q25 4Q24 $1,733M $1,604M FY25 FY24
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5 5 Agenda Sales Core results 01 03 04 Outlook IFRS results 02 05 Select financial highlights
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6 FY 2025 Product mix1 Surgical $5.8B (56%) $10.3 billion Alcon FY25 sales Vision Care $4.6B (44%) 1. Numbers may be rounded for presentation purposes. Totals may not sum due to rounding. Ocular health (39%) Dry eye products Allergy eye drops Steroid eye drops Glaucoma eye drops Contact lens care Contact lenses (61%) Daily lenses Reusable lenses Cosmetic lenses Implantables (31%) Monofocal IOLs Advanced technology IOLs Glaucoma implants Consumables (53%) Dedicated consumables Custom surgical packs Procedural products Equipment/other (16%) Cataract equipment Retinal equipment Refractive equipment Glaucoma equipment Diagnostics & visualization Equipment service Procedural eye drops
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7 Q4 2025 Surgical • Continued competitive pressure in implantables, particularly in international markets • Implantables reflects strong performance by PanOptix Pro in the US • Consumables growth reflects cataract and vitreoretinal procedural growth, as well as price increases • Equipment growth reflects recent equipment launches, including the Unity platform Implantables 5% (CC)1 2% 6% 8% (USD) 4% 1. Constant currency growth is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 18% Net Sales (USD $M) $229 $277 $738 $794 $456 $474 4Q24 4Q25 21% 9%$1,423 $1,545 Consumables Equipment/other + -
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8 Q4 2025 Vision Care $416 $474 $638 $683 4Q24 4Q25 Net Sales (USD $M) 4% (CC)1 12% 7% (USD) 14% 7%10%$1,054 $1,157 Contact lenses 1. Constant currency growth is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. Ocular health • Declines in legacy contact lens products • Price increases and product innovation in contact lenses • Ocular health growth led by our portfolio of dry eye products, including Tryptyr and Systane + -
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9 9 Agenda Sales Core results 01 03 04 Outlook IFRS results 02 05 Select financial highlights
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10 Operating margin 15.9% 11.6% 4Q24 4Q25 Diluted EPS $0.57 $0.44 4Q24 4Q25 Worldwide net sales $2.5B $2.7B 4Q24 4Q25 Q4 2025 IFRS results +9% -430 bpsY/Y change (USD): -23% 1. 4Q25 included $22 million of acquisition and integration related items. 4Q24 included a $57 million net gain related to the divestment of certain product rights in China. 11
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11 Operating margin 14.4% 13.2% FY24 FY25 Diluted EPS $2.05 $1.98 FY24 FY25 Worldwide net sales $9.8B $10.3B FY24 FY25 FY 2025 IFRS results +5% -120 bps -3%1Y/Y change (USD): 1. FY25 included $58 million of acquisition and integration related items, $44 million of product discontinuation charges and higher non-operating income & expense, partially offset by $142 million on fair value remeasurements of investments in associated companies and lower tax expense. FY24 included a $57 million net gain related to the divestment of certain product rights in China.
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12 Q4 2025 IFRS operating margin bridge 4Q25 vs. 4Q24, % of net sales 15.9 (0.2) (1.1) (0.8) (3.0) 0.8 4Q24 Gross Margin SG&A R&D Other income/ expense Foreign Exchange 4Q25 10.8 11.6 1 1. 4Q25 included $22 million of acquisition and integration related items. 4Q24 included a $57 million net gain related to the divestment of certain product rights in China.
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13 FY 2025 IFRS operating margin bridge FY25 vs. FY24, % of net sales 14.4 (0.5) (0.4) (0.7) 0.3 0.1 FY24 Gross Margin SG&A R&D Other income/ expense Foreign Exchange FY25 13.1 13.2 1. FY25 included charges of $44 million related to the discontinued commercialization of a Vision Care product. 2. FY25 benefited from gains of $142 million on fair value remeasurements of investments in associated companies, partially offset by $58 million of acquisition and integration related items. FY24 included a $57 million net gain related to the divestment of certain product rights in China. 21
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14 14 Agenda Sales Core results 01 03 04 Outlook IFRS results 02 05 Select financial highlights
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15 Core operating margin 20.1% 19.0% 4Q24 4Q25 Core diluted EPS $0.72 $0.78 4Q24 4Q25 Worldwide net sales $2.5B $2.7B 4Q24 4Q25 Q4 2025 Core results1 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. +7% -160 bps +2%Y/Y change (cc):
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16 Core operating margin 20.6% 19.8% FY24 FY25 Core diluted EPS $3.05 $3.07 FY24 FY25 Worldwide net sales $9.8B $10.3B FY24 FY25 FY 2025 Core results1 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. +4% -90 bps 0%Y/Y change (cc):
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17 20.1 (0.5) (1.1) (0.4) 0.4 0.5 4Q24 Gross Margin SG&A R&D Other income/ expense Foreign Exchange 4Q25 1. Core operating margin is a non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 18.5 Q4 2025 Core operating margin1 bridge 4Q25 vs. 4Q24, % of net sales 19.0 Key drivers • Core operating margin decrease as 4Q25 included sales and marketing investments behind new product launches, increased investment in R&D, including from recent acquisitions and incremental tariffs, partially offset by favorability from annual incentive compensation and price increases • Positive 50 bps impact from currency
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18 20.6 (0.2) (0.4) (0.5) 0.2 0.1 FY24 Gross Margin SG&A R&D Other income/ expense Foreign Exchange FY25 1. Core operating margin is a non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. FY 2025 Core operating margin1 bridge FY25 vs. FY24, % of net sales 19.7 19.8 Key drivers • Core operating margin decrease as FY25 included sales and marketing investments behind new product launches, increased investment in R&D, including from recent acquisitions and incremental tariffs, partially offset by price increases and favorability from annual incentive compensation. • Positive 10 bps impact from currency
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19 Cash and cash equivalents $1.5 billion FY25 cash flows from operations $2.3 billion FY25 free cash flow1 $1.7 billion Debt $4.7 billion No financial covenants FY 2025 Cash flow and balance sheet highlights Capex $543 million 1. Free cash flow is a non-IFRS measure. An explanation of non-IFRS measures can be found in the Appendix. 19 Returns to shareholders $848 million Includes repurchase of ~8.4 million shares for $682 million & dividend payments of $166 million
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20 20 Agenda Sales Core results 01 03 04 Outlook IFRS results 02 05 Select financial highlights
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21 1. Constant currency growth, core operating margin and core diluted EPS are non-IFRS measures. An explanation of non-IFRS measures can be found in the Appendix. 2. Non-operating income & expense includes interest expense, other financial income & expense and share of loss from associated companies. 3. Core effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. FY 2026 Outlook 2026 outlook as of February Net sales growth vs. prior year (cc)1 (non-IFRS measure) +5% to +7% Core operating margin1 change vs. prior year (cc)1 (non-IFRS measure) +70 to +170 bps Core diluted EPS1 growth vs. prior year (cc)1 (non-IFRS measure) +9% to +12% Assumptions: • Aggregated markets grow approximately 3% to 4%. • The Company expects a full-year tariff impact, net of mitigating actions, of approximately $125 to $175 million, which is expected to pressure cost of net sales. • Exchange rates as of the end of January 2026 prevail through year-end. As of the end of January, the expected currency impact to: ◦ Net sales growth is +120 basis points, ◦ Core operating margin growth is +15 basis points, and ◦ Core diluted EPS growth is +230 basis points. • Non-operating expense2 for FY 2026 is expected to be between $200 and $220 million. • The core effective tax rate3 for FY 2026 is expected to be approximately 20%. • Capital expenditures are expected to be mid-single digits as a percentage of sales. • Approximately 498 million weighted-averaged diluted shares.
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22 22 Appendix
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23 Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures. Core results Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, product discontinuation charges , net gains and losses on fund investments and equity securities valued at fair value through profit and loss ("FVPL"), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, fair value remeasurements of investments in associated companies and certain acquisition related items. The following items that exceed a threshold of $10 million, are not operating expenses necessary to the operation of the business and have costs that will vary over periods are also excluded from core results: integration and divestment related income and expenses, divestment gains and losses, restructuring charges/releases and related items, legal related items, gains/losses on early extinguishment of debt or debt modifications, past service costs for post-employment benefit plans, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a $10 million threshold. Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for certain items such as legal settlements in certain jurisdictions. Alcon believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since they exclude items that can vary significantly from period to period, the core measures enable a helpful comparison of business performance across periods. For this same reason, Alcon uses these core measures in addition to IFRS and other measures as important factors in assessing its performance. A limitation of the core measures is that they provide a view of Alcon operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of purchased intangible assets and restructurings. Constant currency Changes in the relative values of non-US currencies to the US dollar can affect Alcon's financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, we present information about changes in our net sales and various values relating to operating and net income that are adjusted for such foreign currency effects. Constant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the Consolidated Income Statement excluding (i) the impact of translating the income statements of consolidated entities from their non-US dollar functional currencies to the US dollar and (ii) the impact of exchange rate movements on the major transactions of consolidated entities performed in currencies other than their functional currency. Alcon calculates constant currency measures by translating the current year's foreign currency values for sales and other income statement items into US dollars, using the average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars. Free cash flow Alcon defines free cash flow as net cash flows from operating activities less cash flow associated with the purchase or sale of property, plant and equipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator of Alcon's ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS. Reconciliation of guidance for forward-looking non-IFRS measures The forward-looking guidance included in this presentation cannot be reconciled to the comparable IFRS measures without unreasonable efforts, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. These items are uncertain, depend on many factors and could have a material impact on our IFRS results for the guidance period.
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24 ($ millions except earnings per share) IFRS results Amortization of certain intangible assets(1) Acquisition and integration related items(5) Legal items(6) Core results (non-IFRS measure) Gross profit 1,516 171 1 — 1,688 Operating income 313 175 22 4 514 Income before taxes 264 175 22 4 465 Taxes(9) (47) (31) (4) (1) (83) Net income 217 144 18 3 382 Net income attributable to: Shareholders of Alcon Inc. 217 144 18 3 382 Non-controlling interests — — — — — Basic earnings per share ($)(10) 0.44 0.78 Diluted earnings per share ($)(10) 0.44 0.78 Basic - weighted average shares outstanding (millions)(10) 489.3 489.3 Diluted - weighted average shares outstanding (millions)(10) 492.3 492.3 Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. Three months ended December 31, 2025 Reconciliation of IFRS results to core results (non-IFRS measure)
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25 ($ millions except earnings per share) IFRS results Amortization of certain intangible assets(1) Divestment of product rights(3) Other items(8) Core results (non-IFRS measure) Gross profit 1,385 167 — — 1,552 Operating income 395 169 (57) (9) 498 Income before taxes 349 169 (57) (9) 452 Taxes(9) (65) (30) 2 — (93) Net income 284 139 (55) (9) 359 Net income attributable to: Shareholders of Alcon Inc. 284 139 (55) (9) 359 Non-controlling interests — — — — — Basic earnings per share ($)(10) 0.57 0.73 Diluted earnings per share ($)(10) 0.57 0.72 Basic - weighted average shares outstanding (millions)(10) 494.7 494.7 Diluted - weighted average shares outstanding (millions)(10) 498.1 498.1 Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. Three months ended December 31, 2024 Reconciliation of IFRS results to core results (non-IFRS measure)
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26 Twelve months ended December 31, 2025 ($ millions except earnings per share) IFRS results Amortization of certain intangible assets(1) Impairments(2) Gains on investments in associated companies(4) Acquisition and integration related items(5) Legal items(6) Product discontinuation(7) Other items(8) Core results (non-IFRS measure) Gross profit 5,745 681 — — 1 — 44 — 6,471 Operating income 1,360 696 2 (142) 58 21 44 — 2,039 Income before taxes 1,160 696 2 (142) 58 21 44 5 1,844 Taxes(9) (180) (124) — — (12) (5) (10) 8 (323) Net income 980 572 2 (142) 46 16 34 13 1,521 Net income attributable to: Shareholders of Alcon Inc. 980 572 2 (142) 46 16 34 13 1,521 Non-controlling interests — — — — — — — — — Basic earnings per share ($)(10) 1.99 3.08 Diluted earnings per share ($)(10) 1.98 3.07 Basic - weighted average shares outstanding (millions)(10) 493.2 493.2 Diluted - weighted average shares outstanding (millions)(10) 496.2 496.2 Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. Reconciliation of IFRS results to core results (non-IFRS measure)
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27 Twelve months ended December 31, 2024 ($ millions except earnings per share) IFRS results Amortization of certain intangible assets(1) Impairments(2) Divestment of product rights(3) Acquisition and integration related items(5) Other items(8) Core results (non-IFRS measure) Gross profit 5,512 662 — — 3 — 6,177 Operating income 1,413 667 9 (57) 3 (8) 2,027 Income before taxes 1,256 667 9 (57) 3 (8) 1,870 Taxes(9) (238) (119) — 2 (1) 1 (355) Net income 1,018 548 9 (55) 2 (7) 1,515 Net income attributable to: Shareholders of Alcon Inc. 1,018 548 9 (55) 2 (7) 1,515 Non-controlling interests — — — — — — — Basic earnings per share ($)(10) 2.06 3.06 Diluted earnings per share ($)(10) 2.05 3.05 Basic - weighted average shares outstanding (millions)(10) 494.4 494.4 Diluted - weighted average shares outstanding (millions)(10) 497.5 497.5 Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. Reconciliation of IFRS results to core results (non-IFRS measure)
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28 Reconciliation of IFRS results to core results (non-IFRS measure) Explanatory footnotes to IFRS to core reconciliation tables (1) Includes amortization for all intangible assets other than software. (2) Includes impairment charges related to intangible assets. (3) For the three and twelve months ended December 31, 2024, includes a net gain related to the divestment of certain product rights in China. (4) For the twelve months ended December 31, 2025, includes gains on fair value remeasurements of investments in associated companies. (5) For the three months ended December 31, 2025, Gross profit includes the amortization of inventory fair value adjustments related to an acquisition. Operating income also includes $18 million of direct acquisition costs and $3 million of integration related costs related to acquisitions. Acquisition costs primarily include third party professional services for legal fees. Integration related costs include third party professional services of $2 million and accelerated equity-based compensation expense of $1 million. For the twelve months ended December 31, 2025, Gross profit includes the amortization of inventory fair value adjustments related to an acquisition. Operating income also includes $46 million of direct acquisition costs and $11 million of integration related costs related to acquisitions. Acquisition costs primarily include third party professional services for legal, banker, due diligence and accounting fees. Integration related costs include accelerated equity-based compensation expense of $4 million, third party professional services of $4 million and severance of $3 million. For the twelve months ended December 31, 2024, Gross profit includes the amortization of inventory fair value adjustments related to an acquisition. (6) For the three and twelve months ended December 31, 2025, includes provisions for legal matters. (7) For the twelve months ended December 31, 2025, includes charges related to the discontinued commercialization of a product in the Vision Care reportable segment, including $43 million for the full impairment of the intangible asset and $1 million in related costs, primarily related to inventory provisions. (8) For the three months ended December 31, 2024, Operating income primarily includes fair value adjustments to contingent consideration liabilities, partially offset by the amortization of option rights. For the twelve months ended December 31, 2025, Income before taxes includes core adjustments recognized for Aurion in Share of (loss) from associated companies. The expenses were incurred upon change in control from Alcon's acquisition of a majority interest in Aurion and include accelerated equity-based compensation expense of $2 million, third party professional services of $2 million for legal and accounting fees and third party bank fees of $1 million. For the twelve months ended December 31, 2024 , Operating income includes fair value adjustments to contingent consideration liabilities and fair value adjustments of financial assets, partially offset by the amortization of option rights. (9) For the three months ended December 31, 2025, tax associated with operating income core adjustments of $201 million totaled $36 million with an average tax rate of 17.9%. For the three months ended December 31, 2024, tax associated with operating income core adjustments of $103 million totaled $28 million with an average tax rate of 27.2%. For the twelve months ended December 31, 2025, total tax adjustments of $143 million include tax associated with operating income core adjustments, partially offset by discrete tax items. Operating income core adjustments totaled $679 million. Excluding the non-taxable gain of $136 million on fair value remeasurement of Alcon's investment in Aurion, core adjustments to operating income totaled $815 million. The associated tax effect amounted to $151 million with an average tax rate of 18.5%. Core tax adjustments for discrete tax items totaled $8 million. For the twelve months ended December 31, 2024, tax associated with operating income core adjustments of $614 million totaled $117 million with an average tax rate of 19.1%. (10) Core basic earnings per share is calculated using core net income attributable to shareholders of Alcon Inc. and the weighted-average shares of common stock outstanding during the period. Core diluted earnings per share also contemplate dilutive shares associated with unvested equity-based awards as described in Note 5 to the Condensed Consolidated Interim Financial Statements.
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29 Reconciliation of free cash flow (non-IFRS measure) ($ millions) 2025 2024 Net cash flows from operating activities 2,271 2,077 Purchase of property, plant & equipment (543) (473) Proceeds from sale of property, plant & equipment 5 — Free cash flow 1,733 1,604 The following is a summary of free cash flow for the twelve months ended December 31, 2025 and 2024, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: