Medical device giant Cochlear (ASX:COH) released its financial results for the half-year ended December 2025, revealing a period of strategic transition marked by both technological milestones and fiscal tightening.
While the company celebrated the historic launch of the Nucleus Nexa System—the world’s first smart cochlear implant with upgradeable firmware—the bottom line reflected the growing pains of introducing such a sophisticated 20-year R&D project to the global market.
Financial performance remained subdued as the company navigated a "longer than anticipated" product registration and contract renewal process.
Sales revenue saw a modest 1% increase to $1.18 billion, though this figure dipped 2% when measured in constant currency.
Underlying net profit fell 9% to $194.8 million, pressured by higher cloud expenses and fair value losses on investments. Statutory net profit felt a sharper sting, tumbling 21% to $161.5 million.
Cochlear maintained its interim dividend at $2.15 per share, representing a high 72% payout ratio.
Looking ahead, management expects a stronger second half fueled by the broad availability of the Nexa System and growth in its Acoustics segment.
However, caution remains the watchword; the company has steered its full-year underlying profit guidance toward the lower end of the $435–460 million range.
Furthermore, if the Australian dollar maintains its current strength, the firm warns of a potential $30 million foreign exchange hit to its final FY26 results.