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Cochlear (COH) AI Stock Analysis
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Cochlear
(ASX:COH)
The score is driven primarily by solid underlying financial resilience (strong balance sheet and positive/free cash flow recovery) but is capped by the recent profitability step-down and ongoing margin pressures highlighted in guidance. Technicals are supportive in the near term but show signs of being stretched, and valuation looks relatively full despite a supportive ~3% dividend yield.
Cochlear (COH) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 6.55B
- Dividend Yield
- 2.40%
- Average Volume (3M)
- 596.24K
- Price to Earnings (P/E)
- 63.8
- Beta (1Y)
- 1.03
- Revenue Growth
- -0.90%
- EPS Growth
- -62.14%
- Country
- Australia
- Employees
- 5,400
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Devices
Cochlear Business Overview & Revenue Model
Company Description
Globally, Cochlear Limited specializes in the development and provision of implantable auditory solutions for both children and adults. The company's diverse offerings include advanced cochlear implant systems, upgrades for sound processors, bone con...
How the Company Makes Money
Cochlear primarily makes money by selling hearing implant systems and supporting products and services over the life of a patient’s device. A major revenue stream is the sale of cochlear implant systems, which typically includes the internal implant...
Cochlear Earnings Call Summary
The call outlined clear strategic progress: a highly successful Nexa product launch, meaningful unit growth, strong services expansion in developed markets, disciplined cash and cost management, and continued heavy R&D investment into attractive pipeline programs (TICI, drug-eluting electrodes). However, material near-term challenges remain — a 3ppt gross margin decline to 71%, an underlying net profit margin below target (14% vs 18% medium-term goal), Western Europe weakness, China pricing headwinds, non-cash write-downs and FY'27 FX headwinds. Management has responded with cost optimization, targeted growth re-investment (DTC and professional referral pilots) and a conservative FY'27 outlook (low single-digit revenue growth; underlying NP $330m–$350m). Overall the call balanced tangible product and pipeline upside with notable geopolitical, reimbursement and margin pressures.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance highlights: FY26 sales were $2.3bn (up 2% constant currency) with underlying net profit $322m (14% margin); Cochlear enabled >55,000 people to hear and >50,000 of its >800,000 recipients received a new speech processor. For FY27 management expects low single‑digit constant‑currency revenue growth and underlying net profit of $330–350m, with gross margin guided flat at 70–71% (assumes USD $0.70 / EUR $0.61; net‑profit sensitivity ~2% per $0.01 FX and FX net impact on FY27 profit ~‑10% after hedges; current hedging could deliver ~$25–30m). Key financial items: R&D rose 15% to $323m (14% of sales) and will be maintained at ≥12% of revenue; comparable OpEx down 1% (reported OpEx +5% including $32m restructuring and $37m STI provisioning); CapEx around $100m (FY26 ~$91m); cloud program ~$60m after tax in FY27 (total program just over $200m post‑tax); fixed costs cut by 2ppt of revenue (≈$40m run‑rate), $25m reallocated to growth, inventory reduced $75m (13% H2), working capital $789m and operating cash flow +$130m with free cash flow more than doubled. Operational guidance/assumptions include CI systems volumes +5% in FY26 (CI revenue flat; developed‑market CI revenue +1%), Nexa accounting for >95% of developed‑market implants by June with ~3% average price uplift, services +6% (developed +13%) and acoustics +1%, with services expected slightly lower in FY27 and Osia‑3 driving future acoustics growth; medium‑term target remains an 18% net‑profit margin.
Cochlear Financial Statement Overview
Summary
Strong balance sheet (low leverage with ~0.12 debt-to-equity) and consistently positive free cash flow with a sharp FY26 rebound support financial strength. Offsetting this, FY26 showed margin and net income compression (net margin down to ~6.3% vs ~16.6% in FY25) alongside a slight revenue decline, which pressured ROE (~8.5%).
Income Statement
62PositiveBalance Sheet
82Very PositiveCash Flow
74Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.33B | 2.33B | 2.34B | 2.24B | 1.94B | 1.64B |
| Gross Profit | 1.65B | 1.65B | 1.73B | 1.67B | 1.47B | 1.23B |
| EBITDA | 407.00M | 407.00M | 619.90M | 579.50M | 487.10M | 475.40M |
| Net Income | 147.30M | 147.30M | 388.90M | 356.80M | 300.60M | 289.10M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.60B | 2.83B | 2.75B | 2.57B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 187.70M | 187.70M | 275.70M | 513.60M | 555.50M | 629.30M |
| Total Debt | 212.70M | 212.70M | 235.70M | 243.70M | 201.80M | 253.90M |
| Total Liabilities | 862.40M | 862.40M | 874.70M | 904.60M | 819.90M | 779.40M |
| Stockholders Equity | 1.74B | 1.74B | 1.95B | 1.84B | 1.75B | 1.69B |
Cash Flow | ||||||
| Free Cash Flow | 306.90M | 306.90M | 175.20M | 326.40M | 266.50M | 299.30M |
| Operating Cash Flow | 368.00M | 368.00M | 237.60M | 388.80M | 362.40M | 376.50M |
| Investing Cash Flow | -104.50M | -104.50M | -115.20M | -105.70M | -125.70M | -138.90M |
| Financing Cash Flow | -344.10M | -344.10M | -366.90M | -323.80M | -310.40M | -220.70M |
Cochlear Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COH, the sentiment is Positive. The current price of 143.64 is above the 20-day moving average (MA) of 135.21, above the 50-day MA of 136.23, and below the 200-day MA of 144.77, indicating a neutral trend. The MACD of 2.32 indicates Negative momentum. The RSI at 60.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:COH.
Cochlear Peers Comparison
Overall Rating
- AU:COH69Neutral
AU:CMP57.9Neutral
AU:EYE57Neutral
AU:SOM50Neutral
AU:CBL42Neutral
AU:EBR38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:COH | 69Neutral | AUD 9.39B | 63.84 | 8.01% | 2.40% | -0.90% | -62.14% |
| AU:CMP | 58Neutral | AUD 47.94M | 218.18 | 0.93% | ― | 18.54% | ― |
| AU:EYE | 57Neutral | AUD 42.74M | -9.87 | -28.79% | ― | 19.13% | 58.47% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| AU:SOM | 50Neutral | AUD 63.73M | -23.97 | -5.44% | ― | 2.73% | 25.00% |
| AU:CBL | 42Neutral | AUD 28.29M | -2.63 | -103.48% | ― | -22.43% | 15.02% |
| AU:EBR | 38Underperform | AUD 97.93M | -0.94 | -169.40% | ― | 3420.67% | 27.04% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:COH | Cochlear Limited | 143.64 | -133.99 | -48.26% | |
| AU:EYE | Nova Eye Medical Ltd | 0.15 | 0.01 | 9.49% | |
| AU:CMP | Compumedics Limited | 0.24 | -0.10 | -28.36% | |
| AU:SOM | Somnomed Limited | 0.29 | -0.57 | -66.28% | |
| AU:CBL | Control Bionics Ltd. | 0.05 | 0.02 | 44.44% | |
| AU:EBR | EBR Systems, Inc. Shs Chess Depository Interests Repr 1 Sh | 0.13 | -0.98 | -88.28% |
Cochlear Corporate Events
Cochlear Files 2026 Corporate Governance Statement With ASX
Cochlear Limited has lodged its annual corporate governance statement for the year ended 30 June 2026, confirming compliance with ASX Listing Rules and Corporate Governance Council recommendations. The statement, approved by the board on 18 August 20...
Cochlear Details Global Tax Strategy in 2026 Contribution Report
Cochlear has released its Tax Contribution Report 2026, outlining its tax strategy, governance framework and approach to engagement with global revenue authorities. The report details how the company manages tax risk, its stance on tax planning and i...
Cochlear Highlights Mission and Innovation Focus in FY26 Presentation
Cochlear reiterated its mission to transform how hearing loss is understood and treated by delivering a range of implantable hearing solutions that provide lifetime hearing outcomes. The FY26 analyst and media presentation, led by CEO and President D...
Cochlear FY26 Profit Falls as Mix and Margin Pressure Offset Implant Volume Growth
Cochlear reported FY26 sales revenue of $2.3 billion, up 2% in constant currency, with underlying net profit falling 21% to $322 million as gross margins declined and transitional costs weighed on earnings. Cochlear implant unit volumes rose 5%, but...
Cochlear Declares A$1.30 Interim Dividend for Half-Year to June 2026
Cochlear Limited has declared an interim dividend of A$1.30 per ordinary fully paid share for the six-month period ended 30 June 2026. The dividend will trade ex-dividend on 21 September 2026, with a record date of 22 September and payment scheduled...
Cochlear outlines FY26 performance and sustainability strategy in 2026 Annual Report
Cochlear Limited has released its 2026 Annual Report, outlining its strategy to create long-term value for stakeholders and summarising financial and operational performance for the year ended 30 June 2026. The report also details the company’s...
Cochlear Profit Slumps and Dividend Cut Despite Steady Revenue
Cochlear Limited reported largely flat revenue for the year to 30 June 2026, with sales revenue dipping slightly to $2,343.4 million from $2,355.8 million and total revenue edging up to $2,347.6 million. The group’s focus remains on its core im...
Cochlear Sets Key Dates for 2026 Hybrid AGM and Director Nominations
Cochlear Limited has scheduled its 2026 annual general meeting for 10:00am AEDT on Monday, 26 October 2026, to be held as a hybrid gathering that allows both in‑person and online participation. The company has set 5:00pm AEST on Monday, 24 Augu...
JPMorgan exits substantial holder position in Cochlear
JPMorgan Chase & Co has notified Cochlear that it has ceased to be a substantial holder in the company as of 4 August 2026, following a series of changes in relevant interests across multiple affiliated entities. The move reflects adjustments in...
Cochlear sets FY26 results release and analyst briefing for 18 August
Cochlear Limited has scheduled the announcement of its FY26 financial results for 18 August 2026, accompanied by a management presentation accessible to analysts and media via a Teams Live webcast and conference call. The briefing will include a Q&am...
Cochlear Keeps U.S. Duty‑Free Access for Hearing Implants After Tariff Review
Cochlear has confirmed that its hearing implant systems will continue to enter the U.S. market duty‑free following the U.S. Government’s Section 301 investigations into goods produced with forced labor. The final determination preserves t...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 19, 2026