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Cochlear Limited (ASX:COH)

ALERT: Price-sensitive ASX Announcement for COH
Current share price for COH : $130.340 -0.91 (-0.69%)+
Announcement
Release
18 Aug 2026 7:30AM
Price at Release
$131.250
Full Release
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Summary
Cochlear Limited's FY26 results showed an underlying net profit of $322 million, with challenges in achieving a higher net profit margin due to flat cochlear implant revenue and transitional costs. Sales revenue increased by 2% in constant currency to $2.3 billion, while gross margins decreased. The launch of the Nucleus Nexa System saw strong adoption, with Cochlear implant units increasing by 5%. Investments in R&D and strategic initiatives continued, despite impacts from cloud computing expenses and write-downs in innovation fund investments. The company remains committed to efforts in medicalizing hearing loss and enhancing referral pathways.
Key Points
  • Cochlear Limited reported an underlying net profit of $322 million in FY26, with a net profit margin of 14%, below the medium-term target of 18%.
  • Sales revenue increased by 2% in constant currency to $2.3 billion, while the gross margin declined from 74% to 71%.
  • Cochlear implant units grew by 5% to 56,692, with revenue flat in constant currency at $1.4 billion.
  • Free cash flow increased by $141 million to $264 million, supported by improved working capital.
  • The Nucleus Nexa System, a smart cochlear implant, was launched and achieved more than 95% of implant sales across developed markets.
  • Cloud computing investments and non-cash write-downs in innovation fund investments impacted significant items after tax.
  • R&D investment increased by 15% to support major product pipeline projects including a drug-eluting electrode and totally implantable cochlear implant.
  • Operating expenses declined by 1% due to disciplined management and actions to improve cost flexibility.
  • Cochlear remains focused on medicalizing hearing loss and strengthening adult referral pathways.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.