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Highlights:

  • FY25 sales revenue rose 4% to AUD 2,356 million, with cochlear implant revenue up 9% in constant currency.

  • Statutory net profit increased 9% to AUD 389 million, and full-year dividends rose 5% to AUD 4.30 per share.

  • FY26 guidance projects underlying net profit of AUD 435–460 million, supported by the global rollout of the Nucleus Nexa System.

Cochlear Limited (ASX:COH) has released its financial results for the year ended 30 June 2025, marking a year of growth in implant sales and the launch of a major new product. In FY25, over 53,000 people received one or two of the company’s cochlear or acoustic implants, generating an estimated lifetime net social benefit exceeding AUD 9 billion through improved health outcomes, educational savings, and productivity gains.

A key milestone during the year was the June launch of the Cochlear™ Nucleus® Nexa™ System, the world’s first and only smart cochlear implant with upgradeable firmware. This technology is the outcome of two decades of research and development and is in the process of being rolled out globally.

For FY25, sales revenue increased 4% (3% in constant currency) to AUD 2,356 million. Cochlear implant revenue rose 9% in constant currency, acoustic implant revenue grew 6%, while services revenue declined 10%. Statutory net profit rose 9% to AUD 389 million, and underlying net profit increased 1% to AUD 392 million. The underlying net profit margin stood at 17% (18% before cloud investment). Full-year dividends increased by 5% to AUD 4.30 per share, representing a payout ratio of 72% of underlying net profit.

For FY26, Cochlear has provided an underlying net profit guidance range of AUD 435–460 million, an increase of 11–17% on FY25, or 5–11% on a comparative (cloud-adjusted) basis. Growth is expected to be driven by developed markets, supported by the Nucleus Nexa launch, while emerging market revenue growth will be moderated by a higher proportion of lower-tier volume. Overall revenue and earnings growth are expected to be weighted to the second half of the year.

The Nucleus Nexa launch in Europe and Asia Pacific in June 2025 has received significant response from professionals in early-access markets, including Germany and Australia. A US launch is scheduled for the end of the first quarter of FY26, with global availability expanding through the first half. Cochlear implant unit growth in developed markets is expected to exceed 10%, while emerging markets are projected to achieve unit growth with modest revenue expansion.

Services revenue is forecast to grow, aided by a larger eligible base and the rollout of the Kanso 3 Sound Processor. Acoustic implant revenue is expected to achieve double-digit growth, supported by the geographic expansion of the Osia System and the launch of the Baha 7 Sound Processor. The gross margin is projected to be around 74%.

Cochlear plans to invest about 13% of sales revenue in R&D in FY26 and undertake capital expenditure of AUD 100–120 million for capacity expansion in Australia and Malaysia. Cloud-related investment after tax is expected to be around AUD 80 million in FY26, with the remainder to follow in FY27. The Board has also approved a share buyback of up to AUD 75 million over the next year and will maintain a dividend payout target of 70% of underlying net profit.