Cochlear reaffirms FY27 guidance at Capital Markets Day
In its 13 November 2026 Capital Markets Day update, Cochlear Limited (ASX: COH) reaffirmed its FY27 guidance of low single-digit constant currency sales revenue growth and underlying net profit of $330-350 million. The assumptions outlined at the FY26 result in August remain unchanged.
Management said trading to the end of October was in line with expectations, with developed market cochlear implant volumes growing mid single-digit. The company hosted the event for analysts and investors at its global headquarters at Macquarie University.
Management outlined an ambition of underlying net profit growth of around 10% per annum. The financial ambitions presented were labelled “ambition, not annual guidance”:
- ~10% underlying net profit growth per annum
- ~70% dividend payout, based on underlying net profit
- ~$200m net cash target
The presentation also set out recent results for context.
The FY26 result also carried a $32 million restructuring charge and a 15% lift in R&D spending, which explain much of the gap between reported profit and the ambition now being set for the years ahead.
| Metric | FY25 | FY26 |
|---|---|---|
| Revenue | $2,356m | $2,343m |
| Underlying net profit | $415m | $322m |
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Why adult cochlear implants are the long-term opportunity
Management described adult cochlear implants in developed markets as the company’s most significant long-term growth opportunity. Fewer than 5% of adults who could benefit from a cochlear implant have one, and referral for an assessment remains the exception rather than the norm.
A cochlear implant is a surgically placed device that delivers sound signals to the hearing nerve. Hearing aids are the usual first step, and most people in the implant indication use them.
The presentation defined “medicalisation of hearing loss” as establishing hearing loss as a clinically consequential health condition, with defined clinical responsibility and evidence-based care pathways.
Developed market adult surgeries grew at a 9% 10-year compound annual growth rate (CAGR) to FY25, then 0% in FY26. Management said FY26 showed that patients with strong medical referrals or support through the direct-to-consumer channel were more likely to proceed to surgery.
The evidence base cited includes:
- Links between hearing loss treatment and cognition
- Links between hearing loss and falls
- The ACHIEVE cognition and falls evidence
On health economics, UK modelling showed return on investment rising from 43% to 53% when falls and cognitive decline are included, equal to £1.53 back per £1 spent.
Three strategies powered by technology and AI
The presentation detailed three strategies, supported by a technology and AI enabler:
- Expand access to treatment
- Shape the hearing implant category
- Transform the care model
Expand access to treatment
US Cochlear-supported channel growth was +10% in FY26. About one-third of US volume is Cochlear-supported and two-thirds is self-navigated.
Early proof points include UK referrals at 2x (FY23-26) and Australian private surgeries up +15% in FY26.
Shape the category
R&D investment was A$323m in FY26, with about 12% of sales revenue reinvested each year and over A$3bn invested since FY00. The portfolio spans the Nexa platform, drug eluting electrodes (DEE) and totally implantable cochlear implants (TICI).
DEE, TICI and future capabilities remain subject to clinical evidence and regulatory approval, and TICI remains investigational. 92 patients have been implanted with the 3rd generation TICI device in two pivotal studies.
Transform the care model
Connected care targets ≤3 appointments after switch-on, versus 10+ in-person appointments in the legacy model. It also targets ≤6 hours of clinical time per recipient, versus 18+ annually.
Technology and AI
The multi-year technology platform investment is substantially complete. Early gains include 30% faster code development, >30% productivity improvement in insurance claims triage and >50% of upgrade order status calls deflected.
Regional progress
Management highlighted progress across the regions:
- APAC: Nexa and Osia launches drove share gains in every launch country. In Korea, over FY22-FY26, Cochlear’s CI CAGR was +11% against market +9%, and Japan focus centres grew +14% versus +2% nationally.
- US: Adults were 79% of surgeries in F2026.
- EMEA: In Germany, direct-to-consumer activity drove 4000+ new leads and 700+ surgeries in the past 12 months.
Cochlear also announced that Lisa Aubert, President, North America, will leave the company later this year after 32 years of service.
Dig Howitt, CEO & President
“Lisa has made an extraordinary contribution to Cochlear and our Mission over more than three decades…”
What happens next for Cochlear
The announcement and presentation point to the following items:
- Cochlear has commenced a search for a successor to Lisa Aubert, and will announce an appointment “in due course.”
- The first Surgical Capacity Workshop in EMEA is planned for January 2027.
- The FY27 ICD-11 work programme targets completed systematic reviews on 6-8 comorbidity associations, with the first review submitted for publication. The route to change spans FY27-FY30.
- Planned AI benefits over the next 12 months are targets and subject to change.
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