Cochlear Limited's full-year sales revenue rose 2% in constant currency to AUD 2.3 billion in FY 2026, with underlying net profit reaching AUD 322 million. The Australian hearing implant maker's stock rose 7.19% to $140.69 from $131.25 after the update.
The company delivered a mixed but generally resilient FY 2026 performance, with revenue growth modest and gross margin declining to 71% from a higher level a year earlier. However, the second half was stronger than the first, with management highlighting progress in cash generation, cost control, and product adoption.
Financial Outlook
For FY 2027, Cochlear expects constant-currency revenue growth to remain in the low single digits, with underlying net profit forecast at AUD 330 million to AUD 350 million. Gross margin is expected at 70% to 71%, with operating expenses declining slightly.
Chief Executive Dig Howitt said the company's mission remains central to its work, enabling over 55,000 people to hear for the first time or regain their hearing in FY 2026. He also pointed to the long-term growth opportunity in adult hearing loss, with the clinical need significant and adult penetration remaining low.
Product Pipeline
Howitt said Nexa is the base for future growth, with two important implant developments driving growth: drug-eluting electrodes and the totally implantable cochlear implant. Chief Financial Officer Sarah noted that cost control and cloud investments are creating lasting savings, with free cash flow improving sharply in FY 2026.