Key Highlights

  • Cochlear shares were at A$141.33, up 7.68% or A$10.08 on 18 August 2026 at 12:48 pm.
  • FY26 sales Revenue increased 2% in constant currency to A$2.3 billion, with second-half growth of 6%.
  • Underlying net profit reached A$322 million, at the upper end of the company's revised guidance.
  • FY27 guidance calls for low single-digit constant-currency revenue growth and underlying net profit of A$330 million to A$350 million.

Cochlear Limited (ASX:COH) shares were trading at A$141.33 on 18 August 2026 at 12:48 pm, representing a gain of 7.68%, or A$10.08, as investors responded to the company's FY26 financial update. Cochlear reported sales revenue of A$2.3 billion for the year ended June 2026, an increase of 2% on a constant-currency basis. Second-half sales revenue growth was higher at 6%. Underlying net profit was A$322 million, placing the result at the upper end of the revised guidance issued in April.

The outcome follows a weaker first half, when sales revenue was A$1.176 billion, down 2% in constant currency, while underlying net profit fell 9% to A$195 million. The full-year result therefore reflects an improvement in the second-half performance, although Cochlear said cochlear implant revenue for FY26 was flat.

Margin Pressure Remains a Feature of FY26

The revenue result was accompanied by several factors that affected profitability. Cochlear reported a lower gross Margin during the year, while transitional costs and foreign-exchange movements also weighed on the result. The company's previous FY25 figures provide a comparison: sales revenue had risen 4% to A$2.356 billion, while underlying net profit increased only 1% to A$391.6 million. Its gross margin declined by one percentage point to 74% in FY25.

The FY26 update also highlights efforts to reduce fixed costs. Cochlear said the move is intended to create greater flexibility for Investment in growth initiatives while improving margins over time. At the same time, the company is increasing Research and Development investment and progressing its product strategy.

Nucleus Nexa System Adds to Product Pipeline

A central development during FY26 was the rollout of the Cochlear Nucleus Nexa System, which incorporates internal memory and upgradeable firmware. Cochlear has described the system as its first smart cochlear implant platform, with launches progressing across international markets during 2026.

The company is also pursuing broader medicalisation of hearing loss, with the objective of increasing consistency in diagnosis, referral and treatment for people with severe to profound hearing loss. Cochlear said these initiatives form part of its longer-term approach to expanding the hearing implant market.

FY27 Guidance Points to Moderate Earnings Growth

For FY27, Cochlear expects sales revenue to increase by a low single-digit percentage in constant currency. Underlying net profit is forecast at A$330 million to A$350 million. The guidance assumes a gradual improvement in cochlear implant performance across developed markets, continued cost discipline and targeted investment in growth initiatives.

The midpoint of the FY27 underlying net profit range remains below FY25's A$391.6 million underlying result, although the company is entering the new financial year after achieving the upper end of its revised FY26 guidance.

Conclusion

Cochlear's latest result marks a stronger second half after the softer first-half performance, with FY26 revenue growth reaching 2% in constant currency and underlying net profit of A$322 million at the top of revised guidance. The share-price gain to A$141.33 reflects the market's response to the result, while the FY27 outlook points to low single-digit revenue growth and underlying net profit of A$330 million to A$350 million. At the same time, flat cochlear implant revenue, lower margins, foreign-exchange effects and transitional costs remain important features of the company's financial performance.