Cochlear Limited (ASX: COH) has reported a 5 percent increase in revenue to $1,170 million for the first half of the 2025 financial year, supported by strong growth in cochlear implant and acoustics revenue, despite a decline in services revenue.
Underlying net profit increased 7 percent to $206 million, reflecting continued demand for cochlear implants and strong cash flow generation. Statutory net profit also increased 7 percent to $205 million.
Segment performance was mixed:
- Cochlear implant revenue rose 13 percent in constant currency to $724.5 million, driven by solid unit growth in developed markets and private pay demand in emerging markets.
- Acoustics revenue increased 22 percent in constant currency to $140.4 million, benefiting from strong uptake of the Osia implant system.
- Services revenue declined 12 percent in constant currency to $305 million, following an earlier surge in sound processor upgrades in 2024. Lower upgrade rates, influenced by economic pressures in the US and customer satisfaction with previous-generation devices, contributed to the decline.
Cochlear declared an 8 percent increase in its interim dividend to $2.15 per share, representing a 68 percent payout of underlying net profit.
The company reaffirmed its full-year guidance, expecting underlying net profit to be at the lower end of the $410–430 million range. This outlook reflects a weaker contribution from services revenue and increased investment in cloud-related infrastructure.
Cochlear continues to invest in research and development, with new products, including its next-generation cochlear implant and off-the-ear sound processor, expected to launch in mid-2025, subject to regulatory approvals.
