Cochlear’s first-half net profit has fallen to $195 million, a 9 per cent decrease and 4 per cent below consensus expectations, according to Morgans analyst Dr Derek Jellinek. The company, which specialises in implantable hearing solutions, saw its profit impacted by delays in Nucleus Nexa product registration and contract renewals, pushing revenue recognition later than anticipated. Cochlear is a global medical device company that designs, manufactures, and supplies implantable hearing solutions. These solutions include cochlear implants and acoustic implants.
The profit miss was further affected by softer cochlear implant sales, an unfavourable emerging market mix, and a 2 percentage point drop in gross margin. While FY26 guidance of $435 to $460 million was maintained, Dr Jellinek noted that performance is now expected to be at the lower end of the range. This places increased importance on the company’s performance in the second half of the year.
Nexa momentum showed improvement late in the first half, with November to December unit sales up approximately 10 per cent. Nexa products accounted for 80 per cent of unit sales in December. Despite maintaining FY26 guidance, Dr Jellinek said management expects to deliver at the lower end of the range, increasing the burden on second-half execution.
Dr Jellinek added, “The result reinforces our cautious stance on the near-term earnings inflection from Nexa and the elevated expectations embedded in valuation.” Following the announcement, Cochlear shares experienced a significant drop, last trading down by 16.9 per cent in morning trade.
