Cochlear guides 11–17% underlying profit growth next year after modest FY25 result
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The news: Hearing device maker Cochlear reported a 1% rise in full-year underlying net profit to $391.6 million as implant revenue saw a double-digit percentage jump year on year.
The numbers: This marked an improvement from $386.6 million last year and came at the lower end of its annual guidance of $390 million to $400 million, which was downgraded in June. The result was behind consensus estimates of $399.2 million, according to Visible Alpha data.
Statutory net profit was up 9% year on year to $388.9 million, as revenue from the company's cochlear implants rose 11% to $1.47 billion. This was driven by a 12% increase in implant units to 53,968.
The board declared a final dividend of $2.15 per share, up 2% from last year's payout of $2.10 per share. Analysts had expected a final dividend of $2.09 per share.
Cochlear has guided underlying net profit of between $435 million and $460 million for FY26, an 11-17% increase on FY25.
The context: Cochlear said a key highlight during the year was the launch of its Nucleus Nexa System in Europe and Asia Pacific in June, with FDA approval achieved in the US last month.
The company says its new product is the world's first and only smart cochlear implant system with upgradeable firmware. It noted that early-access markets, including Germany and Australia, have seen strong initial demand for the product, with broader availability expected to expand through the first half of FY26.
Cochlear expects strong revenue growth in developed markets from the launch of the new Nucleus Nexa implant, moderated by lower growth in emerging markets revenue.
The source: ASX
