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Sonova Holding AG
(OTC:SONVY)
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Rating:74Outperform
Price Target:
$53.00
▲(0.17% Upside)
Action:Upgraded
Date:05/22/26
The score is driven primarily by solid financial quality (strong margins, returns, and cash generation) and a constructive outlook from management guidance. This is partially offset by recent top-line and free-cash-flow softness, Cochlear Implants pressure and one-offs/FX headwinds, and technically stretched indicators that raise near-term pullback risk.
Positive Factors
High profitability and margins
Sonova’s consistently very high gross and EBITDA margins reflect durable pricing power, favorable product mix, and scale in hearing instruments. High margins support reinvestment into R&D, marketing and service networks, and provide resilience through cycles and pricing pressures.
Negative Factors
Cochlear Implants weakness and China disruption
Advanced Bionics faces structural headwinds: pricing/procurement changes in China and new competitor products have materially reduced volumes and margins. Recovery depends on a planned processor launch and regulatory timing, introducing execution and market-access risk to medium‑term earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sonova’s consistently very high gross and EBITDA margins reflect durable pricing power, favorable product mix, and scale in hearing instruments. High margins support reinvestment into R&D, marketing and service networks, and provide resilience through cycles and pricing pressures.
Read all positive factors
Sonova Holding AG (SONVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.59B
Dividend Yield2.08%
Average Volume (3M)3.58K
Price to Earnings (P/E)27.9
Beta (1Y)0.82
Revenue Growth3.09%
EPS Growth-11.75%
CountryUS
Employees18,335
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.81
Shares Outstanding298,134,030
10 Day Avg. Volume2,397
30 Day Avg. Volume3,581
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)4.16
Price to Sales (P/S)3.01
P/FCF Ratio17.20
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit4.92
Enterprise Value/Ebitda13.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.68
Revenue Forecast (FY)$4.82B
Sonova Holding AG Business Overview & Revenue Model
Company Description
Sonova Holding AG is a prominent developer, manufacturer, and global distributor of hearing health solutions for all age groups. The company's operations are divided into two core areas: Hearing Instruments and Cochlear Implants. Its product range...
How the Company Makes Money
Sonova makes money primarily by selling hearing devices and related solutions, complemented by revenue from audiological care services delivered through retail networks. A major revenue stream comes from hearing aids (hearing instruments) sold via...
Sonova Holding AG Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call highlights strong product-led sales momentum (notably in wholesale and select APAC markets), meaningful operating leverage, high cash conversion and disciplined capital allocation. Key short-term challenges are concentrated in the Cochlear Implants business (notably China) and several non‑core one-off charges plus FX headwinds. Management provided a confident but execution‑sensitive midterm roadmap (innovation, multi-channel expansion, operational savings) and reiterated growth and margin guidance for FY26/27.Positive Updates
Strong Hearing Instruments Growth and Margin Expansion
Hearing Instruments segment sales rose 7.5% to CHF 3.4bn with growth accelerating to 7.9% in H2. Normalized EBITDA for the segment increased 17.3% to CHF 794m, delivering a 23.7% margin (up ~280 basis points in local currencies).
Negative Updates
Cochlear Implants Sales and Profit Pressure
Cochlear Implants sales declined 11% to CHF 252m (or -3.8% excluding China). System sales fell ~10% and upgrade sales declined 13%. Normalized EBITDA for CI was CHF 17.2m (margin ~6.8%), materially impacted by lower volumes and competitive pressure.
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Q4-2026 Updates
Positive
Negative
Strong Hearing Instruments Growth and Margin Expansion
Hearing Instruments segment sales rose 7.5% to CHF 3.4bn with growth accelerating to 7.9% in H2. Normalized EBITDA for the segment increased 17.3% to CHF 794m, delivering a 23.7% margin (up ~280 basis points in local currencies).
Read all positive updates
Company Guidance
Sonova guided FY 2026/27 to consolidated sales growth of 5–8% and core EBIT growth of 7–10% at constant exchange rates, assuming market growth of about 2–4% this year (trending toward a mid‑term 3–5% range); they expect wholesale to outpace the market, retail to deliver robust organic growth plus ~1–2% contribution from M&A and accelerated store openings, and Cochlear Implants to face H1 headwinds with a meaningful H2 pickup after a planned new processor launch. Management flagged modelling items: non‑core items of CHF 35–40m, M&A contribution to group sales ~1–2%, and FX as of early May 2026 that would reduce reported Swiss‑franc sales growth by ~1–2 percentage points and core EBIT growth in CHF by ~2–3 percentage points; H1 is expected to lie within the 7–10% core EBIT growth range.Sonova Holding AG Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.61B | 3.87B | 3.63B | 3.74B | 3.36B |
| Gross Profit | 2.66B | 2.78B | 2.62B | 2.59B | 2.42B |
| EBITDA | 930.70M | 927.00M | 921.70M | 978.70M | 960.90M |
| Net Income | 430.60M | 540.50M | 601.00M | 647.50M | 649.00M |
Balance Sheet | |||||
| Total Assets | 5.63B | 5.92B | 5.79B | 5.55B | 5.59B |
| Cash, Cash Equivalents and Short-Term Investments | 722.10M | 687.10M | 513.80M | 414.80M | 612.00M |
| Total Debt | 1.71B | 1.76B | 1.79B | 1.81B | 1.48B |
| Total Liabilities | 2.99B | 3.24B | 3.30B | 3.32B | 3.16B |
| Stockholders Equity | 2.61B | 2.66B | 2.47B | 2.21B | 2.41B |
Cash Flow | |||||
| Free Cash Flow | 631.80M | 656.10M | 624.70M | 609.10M | 815.90M |
| Operating Cash Flow | 734.50M | 793.70M | 753.30M | 763.40M | 922.50M |
| Investing Cash Flow | -196.03M | -212.70M | -234.00M | -429.50M | -707.00M |
| Financing Cash Flow | -424.51M | -401.80M | -415.30M | -523.50M | -1.37B |
Sonova Holding AG Technical Analysis
Positive
52.91
Price Trends
47.89
Positive
47.72
Positive
50.33
Positive
Market Momentum
-0.13
Positive
57.94
Neutral
62.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONVY, the sentiment is Positive. The current price of 52.91 is above the 20-day moving average (MA) of 49.13, above the 50-day MA of 47.89, and above the 200-day MA of 50.33, indicating a bullish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONVY.
Sonova Holding AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $21.27B | 27.45 | 11.05% | 0.94% | 8.73% | 26.55% | |
74 Outperform | $14.59B | 27.94 | 21.52% | 2.08% | 3.09% | -11.75% | |
73 Outperform | $16.92B | 22.60 | 6.01% | 1.05% | 9.23% | -14.66% | |
72 Outperform | $11.39B | 38.16 | 21.38% | ― | 31.93% | -24.86% | |
72 Outperform | $12.71B | 20.30 | 11.79% | 2.28% | 6.30% | 52.96% | |
62 Neutral | $26.94B | 23.75 | 8.96% | 3.30% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SONVY
Sonova Holding AG
50.35
-7.02
-12.23%
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STE
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ZBH
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87.47
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.