Cochlear
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Cochlear (COH) investor relations material

Cochlear H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary12 Feb, 2026

Executive summary

  • Sales revenue increased 1% to $1,176 million for the half year, but declined 2% in constant currency, with underlying net profit down 9% to $195 million, reflecting delayed contracting and the global launch of the Nexa System.

  • The Nexa System rollout was a key focus, driving future growth and broad adoption in developed markets, but also causing short-term sales delays and market share loss due to competitive discounting.

  • Interim dividend was maintained at $2.15 per share, with a strong balance sheet and net cash of $173 million.

Financial highlights

  • Gross margin declined to 73% (down from 75%), mainly due to product mix shift to lower-margin emerging markets and higher launch costs.

  • Underlying EBIT fell 11% to $254.8 million, with EBIT margin at 22%.

  • Underlying net profit margin was 17%, down from 18% year-over-year.

  • Free cash flow improved to $82.7 million, despite higher working capital from inventory build for new product launches.

  • Net cash decreased by $103 million to $172.7 million, driven by increased working capital, cloud investment, and higher tax payments.

Outlook and guidance

  • Full-year underlying net profit is expected at the lower end of the $435–460 million guidance range, with no catch-up expected in the second half.

  • Stronger second half anticipated, driven by full Nexa availability, growth in Services, and improved Acoustics momentum.

  • FX headwinds could reduce underlying net profit by approximately $30 million if current rates persist, with $3 million impact per US cent and $4 million per Euro cent.

  • Gross margin for FY26 expected to remain around 73%; R&D investment to be about 13% of sales revenue.

Nexa System H2 adoption strategy
Emerging markets gross margin strategy
Rationale for inventory build
Nexa launch: Where was market share lost?
How will cost base adjust for FX to meet 18% NPAT?
Seniors market: Detail medical channel referral plan
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H2 202614 Aug, 2026
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Frequently asked questions

Cochlear Limited is an Australia-based medical device company specializing in implantable hearing solutions. The company designs, manufactures, and distributes cochlear implants, bone conduction systems, and acoustic implants, providing solutions for individuals with moderate to profound hearing loss. Cochlear also offers a range of services and accessories to support patients and healthcare professionals throughout the hearing restoration process.

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