Hearing implant pioneer Cochlear’s profit slump better than feared, at top end of ‘brutal’ guidance downgrade
The hearing implant pioneer has relieved investors with a full-year earnings result at the upper end of its revised guidance, saying adoption of its new high-tech product has been strong.
Hearing implant pioneer Cochlear has relieved investors with a full-year result at the upper end of its revised guidance, saying adoption of its new high-tech product has been strong.
The company’s shares were smashed to a decade-low in April when it dropped its full-year earnings guidance for the second time in just over two months.
It was a downgrade IG markets analyst Tony Sycamore described as “brutal”, slashed from $435-460 million to $290-330m after second half sales in developed markets were softer than expected.
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This financial year, Cochlear expects low single-digit revenue growth on a constant currency basis and underlying net profit of $330-350m.
Revenue inched 1 per cent higher in developed markets in 2025-26, with the company saying growth among adult patients was hamstrung by “inconsistent referral pathways” despite well-established private health insurance reimbursement.
Asia Pacific was the best performer, with strong growth among patients in Australia with private cover who were supported to navigate the healthcare system.
Elective surgery backlogs in the UK and industrial action in Spain were among the problems that made Western Europe the worst performer.
In emerging markets, revenue slipped 2 per cent, with strong growth in Latin America and Eastern Europe offset by declines in China and the war-torn Middle East.
Generally, the adult patient segment was “still too dependent on non-medical referral channels and patient self-navigation”, the company said.
Cochlear said feedback had been positive for its Nucleus Nexa System, the world’s first and only smart cochlear implant system with upgradeable firmware, which accounted for more than 95 per cent of implant sales across developed markets by June.
The company said it remained confident in the long-term outlook for its products, given there was significant unmet and addressable clinical need, and growing awareness of the link between hearing loss and cognitive decline.
