Sydney, Feb 16, 2026, 17:45 AEDT — Market closed
- Cochlear clawed back 0.6% on Monday, recovering a sliver of ground after sinking 18.9% on Friday.
- Morgans dropped its target to A$214.93 and moved to Hold, citing delays in Nexa contracting.
- Attention shifts to the second half, with investors watching if profit guidance and rollout momentum hold up.
After tumbling 18.9% on Friday, Cochlear Limited bounced back a bit Monday, finishing 0.6% stronger at A$200.50. Shares moved within a range of A$197.76 to A$205.73 during the session. (Investing)
Last week’s losses remain mostly intact, though this shift could shape sentiment heading into Tuesday. Investors are left questioning the pace at which the hearing-implant maker will get hospitals and clinics on board with its new Nucleus Nexa system—a drawn-out contracting process already took a toll on first-half results.
The S&P/ASX 200 managed a 19.5-point lift to finish at 8,937.10, with healthcare showing particular resilience. Cochlear advanced 0.6%, CSL added 1.4%—both names recouping some of their recent earnings-related declines. (The Economic Times)
“Short covering and bargain hunting after the recent slump were really the main forces behind today’s broader move up,” said Craig Sidney, senior investment adviser at Shaw and Partners. (The Economic Times)
Broker calls refused to let up, despite the stock’s rebound. Morgans bumped its rating to Hold from Trim, but the firm chopped its price target down to A$214.93 from A$299.54, citing a weaker-than-forecast first-half, with Nexa contracting dragging on past expectations. (Morgans)
The company cautioned that aiming for profits at the low end of its guidance makes a solid second-half bounce-back even more critical. Management also pointed to currency pressures and stiffer rivalry in the acoustics division. (Morgans)
Cochlear reported a slim 1% lift in half-year sales revenue to A$1.176 billion. Stripping out one-offs, underlying net profit dropped 9% to A$195 million. The interim dividend stays put at A$2.15 per share. For the full year, underlying profit is now seen coming in at the low end of guidance—A$435 million to A$460 million—as the Nexa contracting cycle drags on longer than management expected. (ASX Announcements)
Gross margin eased to 73%, the company said, as profit after product costs took a hit. Management also warned that, should the Australian dollar remain where it’s been, underlying profit for FY26 could drop by approximately A$30 million. (ASX Announcements)
During the earnings call, CEO Dig Howitt stuck to the company’s long-term growth targets, even with the immediate reset in play. “We continue to aim to get a sort of 10% revenue growth, year on year,” he told analysts. (Investing)
The near-term focus: will the stock’s modest rebound hold up, or fizzle, as brokers adjust their numbers and traders look for firmer signals on contract timing and second-half output? According to the company, the rest of the account renewals are expected to wrap up in the third quarter—a tight window, not much margin for delays.
The road’s bumpy. Should Nexa adoption or new deals slow down again, or if currency swings continue to bite into margins, shares could be staring at those lows all over. Competition in acoustics isn’t letting up either—lose ground there, and the bear case only gets stronger.
Traders are watching for more broker updates, but the calendar matters, too. Cochlear’s shares go ex-dividend March 19, with the payout scheduled for April 13. (Intelligentinvestor)
