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.
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. Company Announcements
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. Seeking Alpha
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. Sharecafe
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.
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.
