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Stock Markets February 12, 2026

Cochlear shares plunge after half-year profit weakness and cautious full-year outlook

Company points to delayed Nexa contracting and higher cloud costs as drivers of softer interim results and muted FY guidance

By Hana Yamamoto
Cochlear shares plunge after half-year profit weakness and cautious full-year outlook

Cochlear Ltd reported a 9% decline in underlying profit for the six months to December 31, citing higher cloud-computing expenditure and slower-than-expected contracting for its Nexa Implant System. The stock plunged as much as 16.3% to A$205.710, a three-year low, and weighed on the ASX 200, which fell about 1.1%. Management now expects underlying profit for the fiscal year to land at the lower end of its A$435-A$460 million guidance range, and flagged roughly A$80 million in cloud-related costs for the year.

Key Points

  • Cochlear reported a 9% decline in underlying profit for the six months to December 31, citing higher cloud-computing spending.
  • Shares fell up to 16.3% to A$205.710, a three-year low, and helped push the ASX 200 down approximately 1.1%.
  • Management now expects underlying profit to be at the lower end of its A$435-A$460 million guidance range, pointing to delayed contracting for the Nexa Implant System and forecasting about A$80 million in cloud-related costs for the year.

Overview

Cochlear Ltd recorded weaker-than-expected interim results and trimmed the tone of its full-year outlook, prompting a sharp sell-off in its shares on Friday. The Australian maker of hearing implants said its underlying profit for the six months to December 31 fell by 9%, pressure the company attributed in part to increased expenditure on cloud computing.

Market reaction

Shares in Cochlear (ASX:COH) slid as much as 16.3% to A$205.710, marking a three-year low. The decline in Cochlear’s stock was a notable contributor to a 1.1% fall in the ASX 200 index on the day.

Drivers of the interim result

The company said its interim profit was affected by higher spending on cloud technology. In addition, Cochlear pointed to a longer-than-expected contracting process for its Nexa Implant System following the product launch in mid-2025. Delays in product registration and contract renewals related to Nexa were reflected in the half-year results.

Guidance and outlook

Cochlear now expects its underlying profit for the full fiscal year to be at the lower end of the previously stated A$435-A$460 million range. Management indicated that constrained availability and the protracted contracting process for Nexa were factors behind that guidance. The company said it expects Nexa availability to support a stronger performance in the second half, alongside improved returns from its acoustics unit.

At the same time, Cochlear forecast higher cloud-related costs for the fiscal year, estimating those expenses at about A$80 million.

Additional note on investor tools

For investors evaluating Cochlear, product research tools referenced by the company note that an AI-driven selection process reviews COH alongside thousands of other companies across more than 100 financial metrics to assess fundamentals, momentum, and valuation. That service highlights how Cochlear is assessed relative to peers, including whether it appears in specific model strategies.

This article summarizes Cochlear’s interim financial update, its guidance for the year, and the market response. Where details were limited in the announcement, the reporting reflects only the information provided by the company.

Risks

  • Extended delays in contracting, product registration, or renewals for Nexa could continue to suppress near-term revenue and profit - impacts weigh on the medical devices and healthcare equipment sectors.
  • Higher-than-expected cloud-computing expenses may further compress margins if they persist or rise beyond the A$80 million estimate - affects technology spending and operating-cost profiles across device manufacturers.
  • Share-price volatility following the earnings and guidance update can increase market and investor risk for portfolios with exposure to Cochlear and related healthcare stocks - has broader implications for ASX 200 performance.

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