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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.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.
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