SYDNEY, Feb 15, 2026, 18:22 AEDT — Market closed
- Cochlear dropped 18.9% on Friday, closing sharply lower after reporting a half-year profit decline and signaling full-year profit would likely land at the bottom end of its guidance range.
- The timing of the Nexa implant rollout and contract signings has become the main variable for the second half.
- The interim dividend holds at A$2.15 per share, with the stock scheduled to go ex-dividend on March 19
Cochlear Ltd is set for another tough open on the ASX Monday, with shares reeling after Friday’s heavy selloff. The stock closed at A$199.22, marking a drop of 18.9%. Earlier in the session, it touched a low of A$198.50. 1
The point here: Cochlear carries a growth stock price tag, riding on expectations for its upgrade cycle. Following Friday’s drop, investor tolerance for delays is wearing thin, even if the long-term narrative isn’t going anywhere.
Cochlear now expects full-year underlying net profit to land at the lower end of its A$435 million to A$460 million range, citing delays tied to registration and contracts for its new Cochlear Nucleus Nexa System, as the company pushed for higher prices. For the half, sales revenue reached A$1.176 billion, with underlying net profit at A$194.8 million. Statutory net profit, however, slipped to A$161.5 million, and gross margin came in at 73%, down from 75%. Notably, significant items included an after-tax cloud computing hit of A$23.7 million and a non-cash write-down of about A$9 million on its Saluda investment.
Cochlear told investors the contracting process is now “largely complete,” highlighting a pick-up in the second half. In November and December, core markets saw cochlear implant unit growth of around 10% year-on-year. December’s sales were dominated by the Nexa system, which accounted for 80% of units sold that month. Net cash landed at about A$173 million. 2
Chief Executive Dig Howitt cut straight to the point on the earnings call: “this half is really all about Nexa.” The next thing on investors’ minds—proof that this “all about Nexa” focus delivers better pricing and steadier growth after the contracting cycle finishes. 3
Morgans’ Dr Derek Jellinek said the result “reinforces our cautious stance on the near-term earnings inflection from Nexa and the elevated expectations embedded in valuation.” He added that coming in at the lower end of guidance eases some of the second-half execution pressure. 4
Australian shares took a hit Friday, with the risk-off mood pulling healthcare stocks sharply lower. Cochlear, according to Reuters, stood out among the main laggards as the benchmark index dropped. The healthcare sub-index touched lows last seen in 2019. 5
The rebound story looks tighter now. Any pricing resistance from hospital buyers, or sharper discounting from competitors, could push Cochlear’s anticipated second-half boost further out — not what investors are hoping to see. The share price has already demonstrated just how fast it can reset when expectations move.
Broker notes and early-week commentary could give investors a read on whether consensus earnings start shifting toward the lower end of forecasts. March 19 marks the ex-dividend date for the interim payout, with April 13 set for the actual dividend. But, really, it’s the Nexa rollout—management’s bet on a stronger second half—that stands out as the key event to watch.
