Medical device company Cochlear has projected that full-year profits will be at the low end of its guidance range due to delays transitioning customers to its Nucleus Nexa hearing implant system, with shares falling by 16%.
Cochlear’s revenue for the last half rose 1% year-over-year to A$1.18 billion. Underlying net profit fell 9% to $194.8 million, and statutory net profit dropped 21% to $161.5 million.
“Cochlear reached a major milestone in June 2025, launching the Cochlear Nucleus Nexa System, the world’s first and only smart cochlear implant system with upgradeable firmware,” the company wrote.
“We expect the business to deliver 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, reflecting the longer than anticipated contracting process for the Nexa Implant System in the first half.”
The company’s underlying net profit margin decreased from 18% to 17% last half. Operating expenses rose 1% to $602.2 million, driven by a 9% increase in research and development costs.
Sales of its cochlear implants increased 6% to 27,016 units. Revenue from these implants was roughly flat at 724.0 million, with the company crediting this to a higher mix of low-priced units in emerging markets.
According to Cochlear, the Nucleus Nexa System represented 80% of units sold in December.
Across fiscal 2026, it aims to sell at least 60,000 cochlear or acoustic implants, and has forecast “strong revenue growth” in developed markets. Its interim dividend is unchanged at $2.15 per share.
Cochlear (ASX: COH) shares had plummeted 16% to $206.46 by 12:15 pm AEDT (1:15 am GMT). Its market capitalisation is $13.38 billion.
