Australian Healthcare "Healthcare Daily: News, research & industry feedback" Low

Research evidence excerpt

Australian Healthcare "Healthcare Daily: News, research & industry feedback" Low

Global Research

19 May 2026ab

Australian Healthcare Equities

AustraliaHealthcare Daily: News, research & industry

feedback Healthcare

David Low

Analyst

david.low@ubs.com

Competitor results +61-2-9324 2843

James Meares

COH: Sonova - FY26 result (Company PR, 18 May) Analyst

james.meares@ubs.com

+61-29-324 3575Sonova, a global hearing medtech company and competitor to COH, reported its full

year result. Key points from the result include: Grace Allen

Associate Analyst

Cochlear implant revenues dropped 17% in 2H. Sales in the six months to grace-za.allen@ubs.com

March dropped by 17.1% in local FX and were down 11% for the year. The +61-2-9324 2000

weakness was attributed to challenges in China and the “heightened competitive

pressure” from a competitors recent product launch“ – i.e. Cochlear’s Nexa.

China VBC a key headwind. The impact of Value Based Procurement (VBC) in

China was a key cause of the weakness with sales down ~4% excluding this.

New processor likely to include AI features. Sonova confirmed it will launch a

new processor in its second half of its FY27, subject to regulatory approval.

Management indicated the new processor will leverage Phonak hearing aids to

“elevate hearing performance”. Phonak’s DEEPSONIC chip is a dedicated AI

processor for speech which reportedly delivers better hearing outcomes in noisy

environments.

Weak CI sales expected in September half. Full year sales from the cochlear

division are expected to rise 5-8% with headwinds predicted in the six months to

September before the new processor launch.

UBS View: There was limited new information with read across for Cochlear

considering its recent trading update. Sonova offering no detail on the market weakness