Cochlear Limited: FY26 Result Preview: GM commentary critical to shape of mid-term earnings profile; Neutral

Research evidence excerpt

Cochlear Limited: FY26 Result Preview: GM commentary critical to shape of mid-term earnings profile; Neutral

Chris Cooper, ACA CFA AC Asia Pacific Equity Research

(61 2) 9003-6221 20 July 2026 J P M O R G A N

chris.cooper@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

Cochlear’s global market leadership in cochlear implants and

bone-anchored hearing devices is due to technically superior

products vs. competitors, with durable underlying demand

supported by aging demographics and a large, but bottleneck-

constrained addressable market, where penetration is still low,

particularly in seniors. The key near-term driver is commercial

execution. After a slow start, the Nexa launch should drive a

period of improved momentum, but macro challenges are

tightening the referral bottlenecks, and the recent history of

YTD 1m 3m 12m underperforming the market’s revenue expectations requires

Abs -54.4% 0.7% -30.3% -61.6% careful monitoring. Structurally, the model relies on sustained

Rel -55.3% 1.2% -28.5% -63.1%

growth in new implant volumes (with processor upgrades a

Company Data smaller, cyclical recurring component), which makes outcomes

Shares O/S (mn) 66 more sensitive to macro conditions, capacity/funding

52-week range (A$) 319.56-88.74 constraints and payer behaviour than at many “chronic disease”

Market cap ($ mn) 5,466.33

Exchange rate 1.43 peers. While valuation has de-rated vs. history, we see the

Free float (%) 99.6% balance of risk skewed by the need for a step-up in volume and

3M ADV (mn) 0.79 an upgrade in performance to meet double-digit growth

3M ADV ($ mn) 58.3

Volatility (90 Day) 96 expectations, particularly given potential competitive responses

Index ASX 200 from peers’ upcoming launches.