Cochlear Limited Read-across from Sonova FY26 result: Unanimous agreement on improvements in Hearing Aid markets; not yet driving Cochlear Implants; reiterate Neutral

研报英文原文证据摘录

Cochlear Limited Read-across from Sonova FY26 result: Unanimous agreement on improvements in Hearing Aid markets; not yet driving Cochlear Implants; reiterate Neutral

Chris Cooper, ACA CFA AC Asia Pacific Equity Research

(61 2) 9003-6221 18 May 2026 J P M O R G A N

chris.cooper@jpmorgan.com

An improvement in hearing loss markets should be a small

positive for Cochlear Implants

Although Cochlear Implants (CIs) are a different product to Hearing Aids (HAs), they are

both solutions to hearing loss, and each at the more discretionary end of the healthcare

demand spectrum, and hence correlated. If there is indeed a sustained improvement in HA

market conditions ahead this could matter for Cochlear:

• One of the core drivers of the recent COH downgrade was a slower/lower conversion rate

of patients through the funnel (including the HA channel, through which a meaningful

proportion of viable CI candidates are captured/intercepted). See our discussion here.

• The optimistic interpretation (for COH) of an improvement in the HA market could be

that more patients are entering the funnel and/or a greater number are working their way

through the HA channel to become CI candidates.

• A pessimistic interpretation could be that part of the improvement is being driven by

greater technological and commercial execution in capturing the more severe end of the

hearing spectrum (which is indeed a core part of their strategy).

Figure 2: Global Hearing Loss market - by segment Figure 3: HA adoption - by geography and severity

It is conceivable that improvements in technological and HA manufacturers generate the highest ASP (and margin) in

commercial execution for HAs targeted for severe loss are the severe segment

complicating the referral pathway for CIs

Source: J.P.