• Strong growth in cochlear and acoustic implants moderated by a decline in Services revenue
• Invested $292m in R&D, 12% of sales revenue, with good progress made across key projects
• Reached 99% renewable energy at manufacturing facilities, using 100% renewable energy in 5 of 6 facilities

Cochlear Ltd reported a 4% increase in sales revenue to $2,356m and a 1% rise in underlying net profit to $392m for FY25. The company saw strong growth in cochlear and acoustic implants, up 9% and 6% respectively in constant currency, while Services revenue declined 10% in constant currency. Gross margin was 74%, one percentage point below the long-term target. The company invested $292m in R&D, 12% of sales revenue, with good progress made across key projects including the launch of the Cochlear Nucleus Nexa Implant, Nucleus Kanso 3 Nexa and Kanso 3 Sound Processors, and Baha 7 Sound Processor and Baha SoundBand. Cochlear also commenced two pivotal studies for its drug-eluting electrodes. The company maintained its market leadership position, with over 60% global market share. On the environmental front, Cochlear reached 99% renewable energy at its manufacturing facilities, using 100% renewable energy in 5 of its 6 facilities, and reduced the number of flights taken per full-time employee by 40% from the FY19 baseline. The company's strategic priorities focus on growing the hearing implant market, retaining market leadership, building a stronger organisation, and minimising environmental impact.

FY26 underlying net profit guidance range is $435-460 million, an 11-17% increase on FY25, up 5-11% on a comparative (cloud adjusted) basis. Strong revenue growth in developed markets from the launch of the new Nucleus Nexa implant is expected, moderated by lower growth in emerging markets revenue, with overall revenue and earnings growth weighted to the second half.