Cochlear (COH) AI Stock Analysis

• Market Cap: $17.45B
• Dividend Yield: 1.64%
• Average Volume (3M): 130.23K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.47
• Revenue Growth: 4.32%
• EPS Growth: 9.24%
• Country: AU
• Employees: 4,996
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.84
• Shares Outstanding: 65,398,460
• 10 Day Avg. Volume: 116,122
• 30 Day Avg. Volume: 130,233
• PEG Ratio: 5.50
• Price to Book (P/B): 10.08
• Price to Sales (P/S): 8.39
• P/FCF Ratio: 145.62
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 8.34
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 32.23
• 1Y Price Target: $297.75
• Price Target Upside: 11.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: AU$312.00 ▲(16.92% Upside)

Cochlear's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and solid profitability metrics. Technical analysis suggests a neutral trend with mild bullish momentum, while the high P/E ratio indicates potential overvaluation. The earnings call highlights both growth opportunities and challenges, contributing to a balanced outlook.

Positive Factors

R&D Investment

Cochlear's commitment to R&D ensures sustained innovation, enhancing its competitive edge and supporting long-term market leadership in hearing solutions.

Nexa System Launch

The Nexa system launch represents a significant technological advancement, potentially driving future revenue growth and strengthening Cochlear's market position.

Cochlear Implant Growth

Strong growth in cochlear implant sales, especially in emerging markets, indicates robust demand and enhances Cochlear's global market presence.

Negative Factors

Services Revenue Decline

Declining services revenue could impact long-term profitability, as it suggests challenges in sustaining customer engagement and recurring revenue streams.

Margin Pressure

Margin pressure from emerging markets and new facility costs may constrain profitability, requiring strategic cost management to maintain financial health.

Challenges in China

Pricing challenges in China could limit revenue growth and profitability, necessitating strategic adjustments to capture market opportunities effectively.

Cochlear Business Overview & Revenue Model

Company Description

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. The company was founded in 1981 and is headquartered in Sydney, Australia.

How the Company Makes Money

Cochlear generates revenue primarily through the sale of its hearing implant devices and accessories. The company has a well-defined revenue model that includes the direct sale of cochlear implants to hospitals and clinics, as well as ongoing revenues from replacement parts and upgrades of sound processors. Key revenue streams include initial device sales, which are often accompanied by surgical and rehabilitation services, as well as recurring revenues from consumables and accessories needed for the devices. Cochlear also benefits from partnerships with healthcare providers and audiology professionals, which enhance its market reach and facilitate the adoption of its products. Furthermore, Cochlear invests in research and development to innovate and expand its product offerings, thereby driving future growth and revenue.

Cochlear Financial Statement Overview

Summary

Cochlear exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and while cash flow performance has room for improvement, the company remains financially stable. Continued focus on cash flow management will be crucial for sustaining growth and operational efficiency.

Income Statement

Cochlear has demonstrated strong revenue growth with a 14.4% increase in the latest year. The company maintains healthy profitability with a gross profit margin of 73.7% and a net profit margin of 16.6%. EBIT and EBITDA margins are also robust at 22.6% and 26.5%, respectively. These metrics indicate efficient operations and strong market positioning in the medical devices industry.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of 0.12, indicating conservative leverage. Return on equity is strong at 19.9%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base. Overall, the company is well-capitalized with manageable debt levels.

Cash Flow

Cochlear's cash flow performance is mixed, with a significant decline in free cash flow growth by 49.5%. However, the operating cash flow to net income ratio is reasonable at 0.39, and the free cash flow to net income ratio is 0.57, indicating decent cash generation relative to earnings. The company needs to improve free cash flow generation to enhance financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.34B	2.24B	1.94B	1.64B	1.49B
Gross Profit	1.74B	1.73B	1.67B	1.47B	1.23B	1.08B
EBITDA	610.20M	619.90M	579.50M	487.10M	475.40M	451.90M
Net Income	388.90M	388.90M	356.80M	300.60M	289.10M	326.50M
Balance Sheet
Total Assets	2.83B	2.83B	2.75B	2.57B	2.47B	2.43B
Cash, Cash Equivalents and Short-Term Investments	275.70M	275.70M	513.60M	555.50M	629.30M	609.60M
Total Debt	235.70M	235.70M	243.70M	201.80M	253.90M	264.30M
Total Liabilities	874.70M	874.70M	904.60M	819.90M	779.40M	736.50M
Stockholders Equity	1.95B	1.95B	1.84B	1.75B	1.69B	1.69B
Cash Flow
Free Cash Flow	175.20M	135.00M	299.00M	266.50M	299.30M	198.70M
Operating Cash Flow	237.60M	237.60M	388.80M	362.40M	376.50M	265.40M
Investing Cash Flow	-115.20M	-115.20M	-105.70M	-125.70M	-138.90M	279.90M
Financing Cash Flow	-366.90M	-366.90M	-323.80M	-310.40M	-220.70M	-495.10M

Cochlear Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 266.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COH, the sentiment is Neutral. The current price of 266.86 is above the 20-day moving average (MA) of 261.89, below the 50-day MA of 270.52, and below the 200-day MA of 281.81, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 56.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:COH.

Cochlear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COH	69 Neutral	$17.45B	44.90	20.11%	1.64%	4.32%	9.24%
PNV	54 Neutral	AU$842.83M	63.87	16.49%	―	23.31%	151.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CYC	50 Neutral	AU$108.36M	-8.07	-31.98%	―	34.20%	-23.90%
ARX	49 Neutral	AU$260.50M	-157.29	-2.01%	―	16.93%	76.47%
4DX	47 Neutral	AU$2.30B	-60.51	-44.49%	―	55.91%	22.60%
EMV	44 Neutral	AU$167.29M	-15.69	-70.55%	―	―	-257.32%

Cochlear Corporate Events

Cochlear Announces Lapse of 362 Conditional Service Rights

Cochlear Limited has notified the market of the cessation of 362 service rights (COHAB) after the conditional rights to securities lapsed because their vesting conditions were not met or became incapable of being satisfied as of 19 December 2025. The move represents a routine adjustment to the company’s issued capital structure under its employee or service-related equity arrangements, with limited direct impact on operations but reflecting ongoing governance and compliance around performance-based or conditional securities.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$300.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Issues New Shares Following Exercise of Unquoted Options

Cochlear Limited has notified the market of the issue of 617 ordinary fully paid shares following the exercise or conversion of previously unquoted options or convertible securities. The new shares, issued on 19 December 2025, represent a minor increase in the company’s equity base and reflect the ongoing utilisation of its long-term incentive or employee equity plans, with negligible immediate impact on capital structure but signalling continued alignment of management and employee interests with shareholder value.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$300.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Director’s Interest Update: New Acquisitions in Incentive Options

Cochlear Limited announced a change in the director’s interest, specifically for Director Diggory William Howitt, who has acquired additional long-term incentive options and performance rights. This change reflects the company’s ongoing commitment to aligning executive interests with long-term performance goals, potentially impacting stakeholder confidence and market perception positively.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$312.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Issues Unquoted Equity Securities

Cochlear Limited announced the issuance of unquoted equity securities under its employee incentive scheme, which includes options and performance rights. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and market positioning.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$312.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Change in Substantial Holding for Cochlear Ltd

Cochlear Ltd has announced that Hyperion Asset Management Limited has ceased to be a substantial holder in the company as of November 10, 2025. This change in substantial holding may impact the company’s shareholder structure and could potentially influence its market positioning and investor relations.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$312.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Announces New Securities Quotation on ASX

Cochlear Limited has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). The announcement involves the issuance of 77 ordinary fully paid securities under an employee incentive scheme, which are set to be quoted on October 29, 2025. This move is part of Cochlear’s ongoing efforts to incentivize its workforce and align employee interests with company performance, potentially strengthening its market position and stakeholder relations.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$320.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Reports Strong Shareholder Support at 2025 AGM

Cochlear Limited announced the results of its 2025 Annual General Meeting, where all resolutions were carried, indicating strong shareholder support. The meeting results reflect Cochlear’s stable governance and strategic direction, potentially reinforcing its position in the medical device industry and assuring stakeholders of its continued commitment to innovation and growth.

The most recent analyst rating on (AU:COH) stock is a Sell with a A$280.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Reports Strong Progress and Societal Impact at 2025 AGM

Cochlear Limited’s 2025 Annual General Meeting highlighted its continued leadership in the implantable hearing solutions industry, emphasizing its commitment to innovation and long-term growth. The company reported significant achievements, including helping over 53,000 individuals with cochlear or acoustic implants, which have been estimated to provide a net societal benefit of over $9 billion. Additionally, a recent study from South Korea underscored the cognitive benefits of cochlear implants over hearing aids, showing a reduced risk of dementia for users with severe to profound hearing loss.

The most recent analyst rating on (AU:COH) stock is a Sell with a A$280.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.