Cochlear Limited (ASX: COH), a global leader in implantable hearing solutions, today announced its financial results for the half-year ended 31 December 2025. Cochlear provides a range of hearing solutions, including cochlear implants and acoustic implants. The company’s sales revenue saw a modest increase of 1% to $1,176.0 million, up from $1,169.9 million in the prior corresponding period. However, the statutory net profit for the period attributable to members decreased by 21% to $161.5 million, compared to $205.1 million in the same period last year. Underlying net profit for the period was $194.8 million, a 5% decrease from $205.5 million in the prior period.
Basic earnings per share decreased by 21% to 246.9 cents, while underlying basic earnings per share decreased by 5% to 297.8 cents. The company’s net tangible assets per share increased by 2% to 2,178.0 cents. The results reflect growing investment in R&D and activities to support long-term sustainable growth, while managing the phasing of other operating expenses to the second half. The company delivered sales revenue of $1,176 million, an increase of 1% (down 2% in constant currency).
Cochlear implant units increased by 6% to 27,016, although cochlear implant revenue remained in line with the prior year at $724.0 million. Services revenue increased by 2% to $311.6 million, while acoustics revenue remained flat at $140.4 million. The gross margin declined two percentage points to 73%, driven by the higher mix of lower-margin business in the emerging markets. Operating expenses increased 1% (down 2% in constant currency).
The board has declared an interim dividend of $2.15 per share, consistent with the previous corresponding period. The dividend is 85% franked and will be paid on 13 April 2026, with a record date of 20 March 2026. Cochlear expects a strong second half, driven by the 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 $435-460 million guidance range provided in August 2025.
