The Cochlear Ltd (ASX: COH) share price is down 14% after reporting its FY26 first-half result with major profit growth.
Cochlear is a hearing device business globally which provides both implants and services.
Cochlear FY26 first half result
Here are some of the highlights of the result for the six months to 31 December 2025:
- Sales revenue grew 1% to $1.18 billion
- Underlying net profit fell 9% to $194.8 million
- Statutory net profit fell 21% to $161.5 million
- Interim dividend per share was flat at $2.15
What happened during this period?
The business reported that the number of Cochlear implant units increased by 6% to 27,016.
Within the total sales revenue growth of 1%, cochlear implants revenue decreased slightly to $724 million, services (sound processor upgrades and other) sales revenue grew 2% to $311.6 million and acoustics revenue was flat at $140.4 million.
Across developed markets, the focus has been on transitioning customers to the new Nucleus Nexa System after regulatory approval in Europe, Asia Pacific and the US. It has received a positive reception from professionals and recipients, leading to gains in the market share.
Cochlear said that the adults and seniors segment continues to represent the largest opportunities for achieving sustainable growth over the long-term. It’s restructuring its essential components of its organisation to strengthen its operational effectiveness.
A central element of the strategy is the development of a “robust referral pathway for adults and seniors”. By establishing a clear and efficient channels for referrals, it aims to facilitate “increased access to hearing solutions for this demographic”.
Emerging market units grew by 15%, with a decline in revenue because of a high mix of lower-tier volume, particularly in China.
Outlook for the Cochlear share price
The company still believes that there remains a “significant, unmet and addressable clinical need” for implants and this is expected to drive long-term growth of the business.
In FY26, the company is aiming to help more than 60,000 people to hear with an impact. It’s expecting strong second half growth, with broad availability of the Nexa System, strong growth in services and improved momentum for acoustics.
Underlying net profit is expected to be at the lower end of the guidance of between $435 million to $460 million, reflecting “longer than anticipated contracting process for the Next Implant System” in the first half.
For cochlear implants, it’s expecting to deliver strong revenue growth in the developed markets in the second half. Services revenue is expected to grow strongly in the second half. Acoustics revenue is expected to improve in the second half.
Hitting the lower end of guidance is disappointing for investors and its underlying performance is not impressing. It’s not one of the ASX growth shares I’d buy right now. I think there are other opportunities out there.
