By Stuart Condie

SYDNEY--Cochlear expects an annual profit at the lower end of its guidance range after negotiations over pricing slowed the rollout of its latest hearing system, contributing to a 21% drop in first-half profit.

The Australian hearing-tech developer on Friday reported a net profit for the six months through December of 161.5 million Australian dollars, equivalent to US$115.2 million. That compared with A$205.1 million a year earlier.

Sales revenue rose by 1% to A$1.18 billion, but fell by 2% once currency moves were stripped out. The company held its dividend at A$2.15.

The average analyst forecast had been for a net profit of A$178.1 million from sales revenue of A$1.22 billion, according to data compiled by Visible Alpha.

"The first half result reflects the product registration and contract renewal process for the new system, which took longer than anticipated where we sought price increases," said Cochlear, adding the process was largely complete.

Underlying net profit for the December half fell 10% in constant currency terms to A$194.8 million. Cochlear said it expects full-year underlying net profit at the lower end of its previously issued A$435 million-A$460 million guidance range.

Cochlear, which developed the world's first hearing implant in the 1970s after its founder experimented with a blade of grass inside a shell found on an Australian beach, also called out the revenue impact from the sale of cheaper products in emerging markets.

Total implant volumes grew 6% on year to 27,016, but implant sales revenue was flat at A$724.0 million, or 2% lower once currency moves were stripped out. Emerging-market volumes rose 15% on a year earlier.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

February 12, 2026 17:01 ET (22:01 GMT)

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