Fund Manager Summary
The fund managers believe that Cochlear Ltd presents a strong investment opportunity due to its position as a global leader in implantable hearing solutions. In their opinion, the company’s reported 15% increase in sales revenue to almost $2.3 billion and an 18% revenue increase in its key implant business reflect robust demand, particularly in developed markets. The 27% growth in underlying net profit to $387 million, alongside a 20% increase in the final dividend, underscores Cochlear's financial health. Despite a recent share price drop following FY25 profit guidance that fell short of expectations, the fund managers emphasize Cochlear's commitment to innovation and long-term growth potential, especially in addressing significant unmet clinical needs. Their strategic focus on emerging markets and continuous R&D investments position the company favorably for future success.
Source: Trading View
Commentary From The Managers
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Pendal Group
27 Oct 2025
$288.60
Summary
- Pendal Group continues to hold an investment in Cochlear Ltd (COH) due to its strong market position.
- Cochlear reiterated guidance at their recent AGM, indicating confidence in their future performance.
- The failure of Moderna's CMV Vaccine in Phase 3 trials reduces potential competition in the market for newborn deafness.
- This development may enhance Cochlear's market prospects and reinforce their investment thesis.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Pendal Group
27 Oct 2025
$288.60
- Pendal Group continues to hold an investment in Cochlear Ltd (COH) due to its strong market position.
- Cochlear reiterated guidance at their recent AGM, indicating confidence in their future performance.
- The failure of Moderna's CMV Vaccine in Phase 3 trials reduces potential competition in the market for newborn deafness.
- This development may enhance Cochlear's market prospects and reinforce their investment thesis.
Summary
Firetrail Investments
31 Aug 2025
$300.65
- Cochlear shares have underperformed due to mid-point FY26 profit guidance falling below market expectations.
- Performance reflects a patchy demand environment.
- Firetrail Investments acknowledges short-term demand pressure.
- Focus is on the medium-term driver of substantial market share uplift expected from the new Nexa implant.
- Nexa is currently being implanted in patients in Germany and Australia.
- Launch of Nexa in the US is scheduled for this month.
Summary
Antares Capital
31 Aug 2025
$300.65
- Antares Capital continues to hold Cochlear (COH) due to its strong fundamentals.
- Healthcare sector underperformed during the reporting season, affecting COH's performance.
- COH delivered results at the bottom end of its guidance.
- The market expressed disappointment over the lack of a positive outlook for demand for new implants and processors.
- Antares Capital remains optimistic about long-term prospects despite short-term challenges.
Summary
Elston Asset Management
29 Aug 2025
$301.55
- Elston Asset Management highlights that Cochlear (ASX: COH) has recently consolidated after exceeding expectations over the past 24 months.
- The launch of the Nucleus Nexa system is expected to significantly enhance the recipient experience.
- This new system addresses a critical issue in the audiologist industry, particularly concerning significant backlogs.
- By improving efficiency in treating recipients, Cochlear is positioned for the next phase of growth.
Summary
Firetrail Investments
31 July 2025
$318.52
- Cochlear is the global leader in cochlear implants for individuals with severe hearing loss.
- Only 4% of people with severe deafness have received a cochlear implant, highlighting a significant growth runway.
- Recent downgrades have impacted the share price, but Cochlear remains an out-of-favour growth story.
- The upcoming implant launch features advanced technology that may enhance market share.
- The market for cochlear implants is largely untapped, presenting further opportunities for growth.
- Firetrail Investments continues to hold because of the long-term potential in Cochlear's growth strategy.
Summary
Selector Funds Management
30 June 2025
$300.42
- Selector Funds Management continues to hold Cochlear (ASX:COH) due to its leadership in implantable hearing solutions.
- Cochlear has revised its FY25 earnings guidance, expecting a low double digits revenue decline instead of a single digit decline.
- Growth in developed markets has been affected by slow market growth and some market share loss.
- Despite challenges, Cochlear anticipates a 10% increase in implant units for the financial year.
- The company projects an underlying net profit of $390m-$400m, a 6% revision from previous guidance.
- Cochlear launched the Nucleus Nexa System, featuring 'smart' capabilities and the ability to update firmware.
- The Nucleus 8 Nexa Sound Processor is noted as the smallest and lightest on the market, with all-day battery life.
- The internal memory of the Nucleus Nexa allows for user convenience by storing unique hearing settings.
- The Nexa implant represents a 20-year R&D investment and aims to capture additional market share.
- Cochlear's current market capitalisation stands at $19b.
Summary
Antares Capital
30 June 2025
$300.42
- Antares Capital notes Cochlear's FY25 earnings update was below previous guidance.
- The 1H result indicated an impending launch of a new COH implant and processing unit.
- The new processing unit was launched simultaneously with the profit update, surprising the market positively.
- Antares Capital has increased their position in Cochlear due to historical strong performance post-launch of new processors.
Summary
Ten Cap
30 Apr 2025
$274.59
- Ten Cap added Cochlear (COH) to the portfolio over the month.
- Confidence gained that COH would be exempt from tariffs, leading to a belief that the share price reaction was overdone.
- Optimism regarding COH's ability to drive new sales from a forthcoming product release.
Summary
Selector Funds Management
31 Mar 2025
$262.30
- Cochlear is the global leader in implantable hearing solutions, assisting over 700,000 people in 180+ countries.
- Founded in 1981, the company has more than 5,000 employees across 50 countries.
- Cochlear provides lifelong hearing outcomes through implant systems and sound processor upgrades, which account for 30% of sales revenue.
- In February, Cochlear reported mixed results for half year 2025, with revenue increases in Implants and Acoustics but a decline in Services.
- The company observed 10% unit growth in Cochlear Implants among adults and seniors, supported by strong referral rates.
- In Acoustics, the Osia implant gained market share, with U.S. unit sales growing over 50% and expansion into new countries.
- In Services, uptake of the Nucleus 8 sound processor slowed due to high satisfaction with the predecessor and economic pressures.
- Cochlear is seeing positive trends in adult referral rates in developed markets, with initiatives to enhance awareness and access.
- The company is investing in clinical studies to connect hearing loss with cognitive decline and broaden global reach.
- Despite commanding over 60% market share in cochlear implants, the company has only a 4% share in the severe hearing loss segment.
- Cochlear invested $144m in R&D during the half, supporting a strong product pipeline for future growth.
- The company plans to launch two new products in mid-2025, including a next-generation implant and a new off-the-ear processor.
- Management has successfully transitioned its customer relationship and HR systems to the cloud, marking a significant operational milestone.
- So far, Cochlear has invested $130m in upgrading its systems, with total costs now projected at $250m.
- For FY25, Cochlear expects underlying net profit at the lower end of the $410m-$430m guidance range due to lower Services revenue and increased investments.
- The company has a market capitalisation of $17.5b.
Summary
ELM Responsible Investments
31 Mar 2025
$262.30
- Cochlear is a global leader in implantable hearing solutions, including cochlear implants and bone conduction systems.
- Over 700,000 people worldwide have regained their ability to hear through Cochlear's products.
- In February 2025, Cochlear reported a 6% increase in sales revenue for the first half of FY25, reaching AUD 1.17 billion.
- This growth was driven by strong performances in cochlear implant revenue (+13%) and acoustics (+22%).
- However, there was a 12% decline in services revenue due to moderating upgrade rates.
- Cochlear delivered a 7% increase in underlying net profit, supported by a strong gross margin of 75% and strong cash flow generation.
- The long-term outlook for Cochlear remains compelling, as hearing impairment affects over 1.5 billion people globally.
- With low penetration of cochlear implants, there is significant opportunity for growth.
- Cochlear holds an estimated 60% global market share and has over 40 years of experience.
- R&D spending has risen to 12% of sales revenue in FY25, totaling AUD 144.4 million, a 13% increase year-on-year.
- Cochlear has deepened its strategic partnership with GN Group through the Smart Hearing Alliance, enhancing sound clarity and user experience.
- In addition to its core implant business, Cochlear benefits from high-margin accessory sales, providing recurring revenue.
- Overall, Cochlear’s market leadership, commitment to innovation, and exposure to a growing global need are key reasons why ELM Responsible Investments continues to hold Cochlear as a core position in the portfolio.
Summary
Selector Funds Management
20 Feb 2025
$271.92
- Selector Funds Management continues to hold Cochlear Ltd due to its strong performance in the first half of FY25, reporting revenue of $1.2 billion, a 5% increase.
- Underlying net profit rose 7% to $205 million, indicating solid financial health.
- Cochlear maintains its status as the global leader in cochlear implants with over 60% market share.
- Investment in R&D reached $144 million (+14%), representing 12% of revenue, supporting ongoing innovation.
- Mixed results were reported with revenue increases in implants and acoustics of 13% and 22% respectively, totaling $724 million and $140 million.
- Services revenue declined 12% to $305 million, impacting overall performance.
- Unit growth of 10% in adults and seniors for cochlear implants was supported by strong referral rates.
- In Acoustics, the Osia device saw over 50% growth in U.S. unit sales, with expansion into new markets like France and Italy.
- The uptake of the Nucleus 8 sound processor slowed due to high satisfaction with the predecessor and cost of living pressures.
- For FY25, Cochlear expects underlying net profit to be at the lower end of the $410 million-$430 million guidance range.
- The company aims to help 50,000 people hear and plans to launch a next-generation implant and the new Nucleus Kanso 3 processor.
- Cochlear's current market capitalisation stands at $17 billion.
Summary
ELM Responsible Investments
31 Dec 2024
$289.88
- Cochlear is a global leader in implantable hearing solutions.
- Reported strong FY 2024 financial results, showcasing sustained growth and innovation.
- Sales revenue increased by 15% to almost $2.3 billion, driven by growth across all business units.
- Cochlear implant business revenue rose by 18% to over $1.3 billion, supported by a 9% increase in implant units.
- Strong demand observed in developed markets, especially among adults and seniors.
- Underlying net profit grew by 27% to $387 million, with an expanded net profit margin of 18%.
- The board increased the final dividend by 20% to $2.10 per share, totaling $4.10 for the year, a 24% increase year-on-year.
- Commitment to innovation remains strong, with ongoing investment in R&D and market growth.
- Success of new products like the Cochlear Nucleus 8 Sound Processor and the 3 Tesla MRI compatible Cochlear Osia Implant.
- For FY 2025, Cochlear aims to help over 50,000 people with cochlear or acoustic implants.
- Management expresses confidence in long-term growth potential, citing significant unmet clinical needs.
- Despite positive results, shares dropped following the earnings announcement due to FY25 profit guidance falling short of market expectations.
- This reaction is contextualized by Cochlear's strong market position and consistent long-term performance.
- Strategic focus on expanding global footprint, particularly in emerging markets, and continued investment in product innovation.
Summary
Selector Funds Management
31 Aug 2024
$301.10
- Selector Funds Management highlights Cochlear as a global leader in implantable hearing solutions.
- In FY24, Cochlear reported a 15% increase in revenue to $2.3b.
- Underlying net profit grew by 27% to $387m.
- Strong results were seen in Cochlear Implants and Services, with revenue increases of 18% to $1.3b and 15% to $672m, respectively.
- Cochlear Implant performance was driven by market share gains and improved referral pathways in developed regions.
- Over 47,000 patients benefited, providing an estimated net societal benefit exceeding $8b.
- The company invests $277m in R&D, representing 12% of revenue.
- Efforts are focused on raising awareness, expanding product indications, and strengthening referral pathways.
- In FY24, direct-to-consumer initiatives accounted for over 30% of Cochlear Implant volumes in the U.S.
- For FY25, Cochlear anticipates 10% revenue and implant growth, with underlying net profit expected to rise 6%-11% to $410-$430m.
- Cochlear has a market capitalisation of $19.4b and net cash of $514m.
Summary
Selector Funds Management
31 Mar 2024
$336.12
- Cochlear is the global leader in implantable hearing solutions, with over 750,000 devices sold across 180+ countries.
- Founded in 1981, Cochlear employs more than 4,800 staff across 50 countries.
- Delivers lifelong hearing outcomes through implant systems and sound processor upgrades, which contribute 31% of sales revenue.
- Strong half-year 2024 results reported, with double-digit revenue growth: Cochlear Implant (+22%) and Services (+29%).
- Performance driven by market share gains from the launch of the Nucleus 8 Sound Processor and increased demand for upgrades.
- Positive trends in adult referral rates across key developed markets, indicating successful long-term initiatives.
- Investment in clinical studies to raise awareness of hearing loss and cognitive decline, expanding global reach with new product indications.
- Recent FDA changes allow for lower minimum recipient age for cochlear implantation and expand indications for Nucleus implants.
- Focus on direct-to-consumer (DTC) efforts to build referrals from hearing aid channels, enhancing growth in the cochlear implant industry.
- Cochlear commands over 60% of the market share but only holds a 4% share of the hearing devices market for severe or higher hearing loss.
- Management announced plans to upgrade software and technology, reaching a milestone with CRM and ERP systems transitioning to the cloud.
- Investment of $80m with a total expected cost of $100m-$150m for business upgrades.
- New manufacturing plant in China operational, with expectations to sell locally-made implants by December.
- For financial year 2024, management upgraded net profit guidance to $385m-$400m, reflecting improved cochlear implant sales growth.
- Cochlear's market capitalisation stands at $21.5b.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While Cochlear's recent results reveal robust growth and innovation, the market's reaction highlights a cautious sentiment. The potential remains strong, yet it seems investors are weighing future guidance against a backdrop of impressive past performance. Growth may be tempered, but the long-term vision appears promising."
Last Updated: 27 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Cochlear Ltd (ASX:COH)?
Fund managers including ELM Responsible Investments, Ten Cap, Antares Capital, Selector Funds Management, Firetrail Investments , Elston Asset Management and Pendal Group have invested in Cochlear Ltd (ASX:COH).
Why do fund managers invest in Cochlear Ltd?
Fund managers invest in Cochlear Ltd due to its position as a global leader in implantable hearing solutions, demonstrated by strong FY 2024 financial results, including a 15% rise in sales revenue and a 27% increase in net profit. The company's commitment to innovation, with significant R&D investment and successful new products, supports its growth strategy. Despite short-term share price fluctuations following earnings announcements, Cochlear's long-term potential remains robust, driven by a significant unmet demand for cochlear implants and a strategic focus on expanding into emerging markets.
What happened to Cochlear Ltd (ASX:COH)?
Fund managers are investing in Cochlear Ltd due to its potential for significant growth in the cochlear implant market, which remains largely untapped, with only 4% of those with severe hearing loss having received implants. The recent launch of the advanced Nucleus Nexa system is expected to enhance recipient experiences and improve treatment efficiency, addressing industry backlogs. Despite short-term demand pressures and recent share price fluctuations, the medium-term outlook remains positive, driven by anticipated market share gains from the new implant.