Key Highlights

• FY26 sales Revenue reached A$2.34 billion, up 2% in constant currency, with underlying net profit of A$322 million

• The Nucleus Nexa System, the world's first smart cochlear implant with upgradeable firmware, achieved over 95% of developed market implant sales

• FY27 guidance targets underlying net profit of A$330-350 million with low single-digit constant currency revenue growth

Cochlear(ASX:COH) closed at A$154.44 on 05 November 2026, advancing 8.65% during the session. The broader S&P/ASX 200 (XJO) gained 2.61%, adding 230.60 points to 9,065.10, while the S&P/ASX 200 Health Care index (XHJ) climbed 3.64%, or 1,240.30 points, to 35,329.10. Overnight Wall Street gains following Democrats' decisive U.S. midterm election victory provided a tailwind for global markets. Cochlear is a global leader in implantable hearing solutions, developing and Manufacturing cochlear implants, bone conduction implants, and acoustic implants across more than 180 countries.

FY26 Financial Results

On 18 August 2026, Cochlear reported its financial results for the year ended June 2026. Sales revenue was A$2,343.4 million, declining 1% on a reported basis but rising 2% in constant currency terms. Underlying net profit reached A$322.4 million, down 22% from A$414.5 million in FY25, achieving the upper end of revised guidance provided in April. Net profit Margin was 14%, below the medium-term 18% target.

Gross margin declined from 74% to 71%, affected by sales mix shifts including lower-than-expected developed market revenue and increased lower-tier sales in China, as well as manufacturing variances and foreign exchange headwinds. Foreign exchange movements reduced underlying net profit by 8%, or approximately A$24 million. Operating expenses on a comparable basis declined 1%, reflecting disciplined management of discretionary spending, while R&D Investment increased 15%.

Cochlear Implant Segment and the Nexa System Launch

Cochlear implant units grew 5% to 56,692, though segment revenue was flat in constant currency at A$1.4 billion due to a higher mix of lower-priced emerging market units. The company reached a milestone with the launch of the Nucleus Nexa System, which achieved more than 95% of implant sales across developed markets by June. An average 3% price increase was achieved with the new system.

In regional terms, US revenue increased 4%, with direct-to-consumer surgeries growing 10%. Western Europe revenue declined 8% due to elective surgery backlogs in the UK and industrial action in Spain. Asia Pacific revenue rose 7%. Emerging market revenue declined 2% in constant currency, with the Middle East affected by regional conflict and China impacted by volume-based procurement pricing.

Services revenue grew 6% in constant currency to A$635 million, while Acoustics revenue increased 1% to A$273 million, supported by expansion of the Osia System into newer markets.

About Cochlear

Cochlear is headquartered in Sydney, Australia, and is the global leader in implantable hearing solutions. The company designs, manufactures, and supplies cochlear implant systems, bone conduction implants, and acoustic implant systems. Its products are used in more than 180 countries, and the company invests significantly in R&D to advance hearing science. Major pipeline programs include a drug-eluting electrode and a totally implantable cochlear implant.

Sector Context

The ASX healthcare sector posted broad gains on 05 November 2026, with the Health Care sub-index outperforming the benchmark. Medical device companies globally continue to navigate post-pandemic normalisation in elective procedures, while hearing implant Demand benefits from long-term demographic trends and increasing awareness of hearing loss treatment Options among adults.

Risks

Currency exposure remains a meaningful risk, with FY26 results impacted by adverse foreign exchange movements. Cochlear faces competitive pressures in key markets, particularly Germany where Market Share declined. Regulatory and pricing pressures in China and emerging markets through volume-based procurement programs pose ongoing risks. The inconsistency of adult referral pathways in developed markets presents a challenge to achieving more predictable growth.

Catalysts on Watch

The FY27 outlook for underlying net profit of A$330-350 million will be closely watched. Investors may also monitor the progress of cost flexibility initiatives, the rollout of software updates for the Nexa System platform, and the development of the drug-eluting electrode and totally implantable cochlear implant programs. The completion of the cloud modernisation program in FY27 and any recovery in Western European procedure volumes are additional factors to monitor.

The Bottom Line

Cochlear's FY26 result reflected a year of transition, with margin compression from currency headwinds and sales mix shifts offset by the milestone Nexa System launch and continued investment in the Long-term Growth opportunity. The company enters FY27 with a focus on cost discipline, product innovation, and expanding the referral pathways that management believes will underpin more systematic growth in adult cochlear implantation.