SYDNEY, Feb 15, 2026, 18:22 AEDT — Market closed
- Cochlear shares closed down 18.9% on Friday after half-year profit fell and full-year profit was steered to the low end of guidance
- The Nexa implant rollout and contracting timeline is now the key swing factor for the second half
- An interim dividend of A$2.15 a share was kept steady, with the stock set to go ex-dividend on March 19
Cochlear Ltd shares are heading into Monday’s ASX open still under pressure after a sharp selloff on results day. The stock ended Friday at A$199.22, down 18.9%, after hitting an intraday low of A$198.50. (Investing)
That move matters because Cochlear is priced like a growth stock and trades on confidence in its upgrade cycle. After Friday’s slide, the market has less patience for timing slips, even if the long-term story stays intact.
The company pinned full-year underlying net profit to the lower end of its A$435 million to A$460 million guidance range, saying the product registration and contract renewal process for its new Cochlear Nucleus Nexa System took longer than anticipated as it sought price increases. Cochlear also reported sales revenue of A$1.176 billion for the six months and underlying net profit of A$194.8 million, while statutory net profit fell to A$161.5 million; gross margin dipped to 73% from 75%. It flagged A$23.7 million of after-tax cloud computing-related expense and a roughly A$9 million non-cash write-down on its Saluda investment among significant items.
In its presentation, Cochlear said the contracting process is now “largely complete” and pointed to late-half momentum: key markets posted about 10% year-on-year growth in cochlear implant units in November and December, with 80% of units sold in December made up of the Nexa system. It also reported net cash of about A$173 million. (Company Announcements)
On the earnings call, Chief Executive Dig Howitt framed the period bluntly: “this half is really all about Nexa.” Investors will be looking for evidence that “all about Nexa” turns into higher pricing and cleaner growth once the contracting cycle clears. (Seeking Alpha)
Morgans analyst Dr Derek Jellinek said the outcome “reinforces our cautious stance on the near-term earnings inflection from Nexa and the elevated expectations embedded in valuation.” He also flagged that landing at the low end of guidance lifts the pressure on second-half execution. (Sharecafe)
Friday’s drop landed in a broader risk-off session for Australian equities, with healthcare among the weaker pockets of the market. Reuters reported Cochlear was among the biggest drags as the benchmark index fell, while the healthcare sub-index slid to its lowest level since 2019. (Business Recorder)
But the rebound case now has less room for error. If hospital purchasing teams push back on pricing, or if rivals lean harder on discounts, Cochlear’s hoped-for second-half lift could arrive later than the market wants — and the stock has already shown how quickly it reprices when timing shifts.
Investors will watch broker note flow and any follow-on commentary early in the week for whether consensus earnings resets toward the bottom of the range. The next date on the calendar is the interim dividend’s March 19 ex-dividend day, followed by the April 13 payment, but the bigger catalyst is whether the Nexa rollout delivers the stronger second-half that management is banking on.
