GKOS Stock Surges 67% Year to Date: What's Driving the Rally?

The company is increasingly transitioning from a glaucoma-focused business into a broader ophthalmology platform spanning glaucoma, corneal disease, retinal disorders and other chronic eye conditions.

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Factors Benefiting GKOS

iDose TR Is Transforming Glaukos’ Glaucoma Franchise: The principal growth engine is iDose TR. U.S. glaucoma revenues increased 64% in the second quarter to $118.5 million, while iDose TR sales reached approximately $74 million, up 37% sequentially. Its growing clinical evidence base, surgeon adoption and push toward earlier interventional treatment are expanding the addressable market. 24 peer-reviewed publications and ongoing Phase IV studies further support adoption.

Epioxa Opens a New Corneal Growth Market: Epioxa is emerging as a second transformational growth driver. Glaukos’ Corneal Health franchise grew 48% to $30.4 million in the second quarter, including roughly $11 million from Epioxa. Epioxa is supported by access pathways covering more than 125 million commercial lives. Its site-of-care network already reaches about 85% of the U.S. population. Epioxa, approved in October 2025, is also the first FDA-approved epithelium-on corneal cross-linking therapy for keratoconus, positioning it for a competitive advantage in the targeted market.

International Glaucoma Expansion Provides Additional Runway: Strong demand for Glaukos’ glaucoma franchise in the international markets continues to support double-digit growth. The second-quarter revenues increased 17% reportedly and 16% at constant currency to $36.6 million. This was preceded by a robust growth of 23% in the first quarter. The company is expanding MIGS adoption across major markets, while iStent infinite’s European launch provides an additional product catalyst. This international infrastructure should help diversify growth as U.S. iDose penetration matures.

Broad Pipeline Could Extend Growth Beyond Current Products: Glaukos is building a diversified pipeline across five novel therapeutic platforms and 13 publicly disclosed programs. GKOS is evaluating iDose TREX in a Phase IIb/III trial, while iDose TRIO targets FDA approval by late 2027. The company is also advancing a keratoconus screening device, customized iLink therapy, iStent infinite, PRESERFLO MicroShunt, Demodex therapy and GLK-401 for wet AMD. Successful development and commercialization of these products should reduce reliance on one product cycle going forward.

Competition

Glaukos is competing across several distinct ophthalmology markets, with Alcon ALC and Sight Sciences SGHT representing directly comparable competitive exposures. Alcon’s second-quarter results showed 7% overall growth, while its cataract and implantable portfolio continued advancing through PanOptix Pro. ALC’s contact lens and ocular-health franchises also provide scale and diversification. Sight Sciences meanwhile delivered 20% revenue growth in the second quarter and is building its own interventional glaucoma and dry-eye platform. SGHT’s OMNI revenues rose 8% and TearCare revenues nearly doubled sequentially, while Aetna added about 25 million covered lives for OMNI and SION.

Although AbbVie’s ABBV retinal portfolio is not a significant portion of its business, the company has a presence in Glaukos’ targeted markets — sustained-release implants, MIGS and wet AMD. AbbVie commercializes Durysta as a biodegradable sustained-release implant for open-angle glaucoma or ocular hypertension. ABBV markets the XEN Gel Stent as a MIGS device to lower intraocular pressure. The company is also developing a pipeline candidate for treating wet AMD.

Against Alcon, ABBV and Sight Sciences, GKOS stands out for its concentrated exposure to underpenetrated interventional eye-care markets and exceptionally rapid revenue growth. However, Alcon offers greater scale, while Sight Sciences is intensifying competition in MIGS.

Risks and Challenges

The most significant near-term risk for Glaukos is reimbursement execution. Five of seven Medicare Administrative Contractors issued proposed local coverage determinations for iDose TR during the second quarter, making the final coverage environment important for procedure adoption and utilization. Epioxa also remains an early-stage commercial launch, with additional payer coverage, provider familiarity with its new J-code and broader patient diagnosis will determine how quickly the market develops. International glaucoma faces trialing of competing products in several major markets, while currency tailwinds are expected to fade. Finally, the company’s ambitious clinical pipeline carries regulatory, clinical and commercialization risk. Any developmental or regulatory delay can affect iDose TREX, TRIO, iLink or retinal programs, which could push out future growth expectations.

Conclusion

GKOS’s rally is underpinned by accelerating iDose TR adoption, Epioxa’s launch and expanding international and pipeline opportunities. The company has materially raised 2026 revenue guidance, reinforcing the growth prospect. Nevertheless, reimbursement decisions, competitive trials and execution across multiple launches remain key variables. With GKOS carrying a Zacks Rank #3 (Hold), investors should weigh exceptional growth against these execution risks. Currently, the average price target for GKOS reflects a 5.6% upside potential, compared to the closing price as of Aug. 19, 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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