Cochlear Ltd. reported improved cash flow and raised its fiscal 2026 outlook on Tuesday, sending its shares higher in early trading.
The Australian hearing implant manufacturer said operating cash flow increased 12% year-over-year to A$345 million for the six months ended December 31, 2025, driven by higher sales and cost efficiencies. Revenue rose 8% to A$1.2 billion, with growth supported by strong demand in Europe and Asia-Pacific.
Cochlear upgraded its fiscal 2026 revenue guidance to A$2.6 billion–A$2.7 billion, up from a prior range of A$2.4 billion–A$2.6 billion, citing robust order books and pricing power. The company also narrowed its earnings before interest and tax (EBIT) margin forecast to 24%–25%, from 23%–25% previously.
Shares in Cochlear gained 3.5% to A$245.50 in Sydney trading, outperforming the broader S&P/ASX 200 index. Analysts at Macquarie maintained a neutral rating but raised their price target to A$260 from A$240, citing the improved outlook.
Cochlear’s hearing solutions, including cochlear implants and bone conduction devices, remain in high demand amid an aging global population and rising awareness of hearing loss. The company’s focus on emerging markets, particularly China and India, has further bolstered its long-term growth prospects.
The company will release its full-year results for fiscal 2025 on August 14, 2025.
