Cochlear (ASX: COH) – 2026 AGM Chair and CEO Addresses

Cochlear Limited reported FY26 results that fell short of management expectations, with sales revenue rising 2% in constant currency to AUD 2.3 billion and underlying net profit of AUD 322 million. The company attributed the shortfall to external headwinds including healthcare capacity constraints, industrial action in Europe, insurance delays in the US, and reimbursement changes in China. Despite these challenges, the launch and adoption of the Nucleus Nexa System, the company’s flagship smart cochlear implant, provides a foundation for near-term growth and validates the technology strategy.

Cochlear’s addressable market centers on severe to profound hearing loss, affecting millions of adults in developed markets where penetration among eligible adults remains below 5%. The Nexa System’s strength is significant in this context. By June 2026, Nexa represented more than 95% of implant sales in developed markets and achieved an average 3% price increase, signaling both market acceptance and pricing power. Usage data shows patients spending more hours daily with Nexa compared to prior products, supporting the value proposition.

The company’s long-term strategy centers on medicalizing the adult hearing loss treatment pathway. Management identified that referral and growth remained stronger in channels with direct company involvement in patient pathways, while independent patient navigation produced weaker results. In response, clinical practice guidelines are now implemented across 25 countries, and the company is expanding direct-to-professional referral capability in the US, Germany, the UK, and Australia. This approach mirrors the successful trajectory in pediatric implants, where most eligible children in developed markets now receive implants before age 12.

The Nexa platform is the foundation for two significant pipeline opportunities. The company completed key studies for a drug-eluting electrode designed to reduce inflammation after implant surgery. More significantly, Cochlear completed recruitment for key studies of its totally implantable cochlear implant (TICI), which eliminates the external sound processor. TICI recruitment proceeded faster than previous implant trials, suggesting market appetite for a less visible option. Recipients have accumulated over 1 million cumulative hours of TICI experience across three generations of the technology.

Board changes reflect execution focus. Professor Ian Meredith, former Chief Medical Officer of Boston Scientific, joins the board December 1. Management expects FY27 underlying net profit of AUD 330 million to AUD 350 million, a modest recovery from FY26 assuming successful execution against the revised strategy of lower fixed costs and sharpened investment priorities.

Investors should monitor Nexa adoption in emerging markets, regulatory progress on the drug-eluting electrode and TICI, and whether referral pathway initiatives deliver measurable improvements in case volumes. This announcement has been designated as price sensitive and flagged as material by ASX.

View the full ASX announcement (PDF)

About Cochlear Limited (ASX: COH)

Cochlear Limited is the world’s leading manufacturer of cochlear implant devices and other implantable hearing solutions for individuals with severe to profound hearing loss. The company develops and manufactures cochlear implant systems, bone conduction devices, sound processors, and related accessories for children and adults worldwide. Headquartered in Sydney, Australia, Cochlear operates across developed markets in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region.

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