Cochlear Limited – 1HFY26 Earnings and Operational Update
Cochlear Limited (ASX: COH) reported sales revenue of AU$1,176.0 million for the half year ended December 2025, reflecting a 1% increase, while underlying net profit declined 9% to AU$194.8 million, with margin easing to 17%. Growth in implant units of 6% was offset by a higher mix of lower-priced emerging market sales, weighing on gross margin, which moderated to 73%. Services revenue recorded modest growth, supported by expansion in developed markets, while Acoustics remained broadly stable amid competitive pressures.
Operating cash flow improved to AU$136.8 million, and free cash flow rose to AU$82.7 million, demonstrating resilient cash generation despite increased cloud-related expenses and inventory build-up. Dividend maintained at AU$2.15 per share (72% payout ratio), reflecting confidence in capital management discipline. Looking ahead, the company expects stronger second-half momentum driven by broader availability of the Nucleus Nexa System and continued investment in research and development.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Cochlear Limited – 1HFY26 Earnings and Operational Update
Cochlear Limited (ASX: COH) reported sales revenue of AU$1,176.0 million for the half year ended December 2025, reflecting a 1% increase, while underlying net profit declined 9% to AU$194.8 million, with margin easing to 17%. Growth in implant units of 6% was offset by a higher mix of lower-priced emerging market sales, weighing on gross margin, which moderated to 73%. Services revenue recorded modest growth, supported by expansion in developed markets, while Acoustics remained broadly stable amid competitive pressures.
Operating cash flow improved to AU$136.8 million, and free cash flow rose to AU$82.7 million, demonstrating resilient cash generation despite increased cloud-related expenses and inventory build-up. Dividend maintained at AU$2.15 per share (72% payout ratio), reflecting confidence in capital management discipline. Looking ahead, the company expects stronger second-half momentum driven by broader availability of the Nucleus Nexa System and continued investment in research and development.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au