Cochlear has told shareholders that stronger times are ahead after the Australian hearing implant maker’s annual net profit fell 62 per cent and its share price more than halved over the past year.
Chief executive Dig Howitt said the company had faced a difficult 2025/26 financial year but remained focused on improving its performance and expanding the market for its products.
“We know financial year 2026 was challenging. We also know what we need to do,” Mr Howitt told Cochlear’s annual general meeting on Monday.
“Our strategy is clear. The opportunity is significant. Our focus is execution: to grow the market, improve performance and deliver stronger long-term value.”
The Sydney-based company, established 45 years ago to commercialise its implant technology, reported net profit of $147.3 million for the year. Sales revenue was flat at $2.3 billion, despite a 5 per cent increase in implant device sales to almost 57,000 units.
Cochlear’s underlying profit fell 22 per cent to $322.4 billion. The company said softer sales, demand linked to the war in the Middle East and higher costs had contributed to the downturn.
Its shares were trading at about $296.50 a year ago, before falling to a three-year low of $199.22 in February after the company missed its first-half earnings guidance. They dropped further in April to $88.74 when Cochlear warned that full-year earnings would fall by more than $100 million.
Cochlear maintained its forecast for a modest rise in underlying net profit to between $330 million and $350 million in 2026/27. Its shares were down 2.6 per cent at $142.90 around noon Australian Eastern Daylight Time on Monday.
