• Transition to new Nucleus Nexa System with a focus on product registration and contract renewals
• Sales revenue up 1% (down 2% in constant currency) to $1,176m
• Underlying net profit down 9% to $195m
• Expect a strong H2 driven by Nexa System availability, Services growth, and improved Acoustics

Cochlear Ltd reported its HY26 results, with a focus on the rollout of the Cochlear Nucleus Nexa System, the world's first and only smart cochlear implant system with upgradeable firmware. The transition to the new system since June 2025 has involved a focus on achieving product registration and contract renewals across the developed markets, though the contracting process took longer than anticipated. Sales revenue was up 1% (down 2% in constant currency) to $1,176m, while underlying net profit was down 9% to $195m. The company has a strong balance sheet with net cash of $173m and maintained its interim dividend at $2.15 per share. For FY26, Cochlear expects a strong second half driven by the broad availability of the Nexa System, strong growth in Services, and improved momentum for Acoustics. Underlying net profit is expected to be at the lower end of the $435-460m guidance range provided in August 2025, reflecting the longer than anticipated contracting process for the Nexa Implant System in the first half. The company continues to invest in key R&D projects and the development of its product and services pipeline, with around 12% of sales revenue spent on R&D each year.

For FY26, Cochlear expects underlying net profit to be at the lower end of the $435-460m guidance range provided in August 2025, reflecting the longer than anticipated contracting process for the Nexa Implant System in the first half. The guidance is based on FX rates provided in August 2025 of 66c AUD/USD and 56c AUD/EUR, and if the AUD remains at its current levels for the balance of FY26, underlying net profit would be expected to reduce by ~$30m.

Cochlear expects a strong second half driven by the broad availability of the Nucleus Nexa System, strong growth in Services, and improved momentum for Acoustics. The company is focused on creating long-term sustainable growth by strengthening the adult and senior referral pathway, communicating the clinical evidence linking hearing treatment to cognitive health, and creating clinical capacity through its Connected Care ecosystem.