Sonova’s core operating profit beats expectations by 10% in first half
Key Facts
Sonova said core operating profit reached 384 million Swiss francs in the six months ended September 30, 2026, beating the Vara Research consensus of 348.3 million francs, dated November 3, by about 10%. The company said profit rose from 316.4 million francs in the same period a year earlier. It grew 22.9% in local currencies, compared with expected growth of 11.8% for the first half of fiscal 2026/27. The results put the operating surprise at the forefront of the report, with core profit exceeding analyst consensus. Investing.com reported that the company raised its annual profitability outlook for fiscal 2026/27 following the results.
Core operating profit margin improved to 20.9% from 18.4% a year earlier, beating the consensus estimate of 19.2%. The wider margin means profit grew faster than revenue, alongside higher sales, improved average selling prices and cost discipline, the factors Sonova cited for the increase in profit. The company said the impact of these drivers was partly offset by weaker results in its cochlear implant business. Group sales rose 7.5% in local currencies and 6.7% in Swiss francs to 1.83 billion francs. Sales came in slightly above the average estimate of 1.82 billion francs.
Core gross profit rose 11% in local currencies to 1.37 billion Swiss francs, compared with expectations of 1.32 billion francs. The report attributed the growth in this figure to higher volumes and prices, as well as the absence of temporary manufacturing and logistics costs that affected the year-earlier period. This supports the picture of operating performance benefiting from revenue growth and an improved price-cost mix, while weakness in cochlear implants remained a headwind. In that business, sales fell 10.2% in local currencies to 117.4 million francs in the first half. The report cited lower system sales in China and the United States as the reason for the decline.
On its outlook, Investing.com reported that Sonova raised its profitability forecast for fiscal 2026/27, and the company linked the improvement in operating profit to higher sales and average selling prices and cost discipline. The report background points to market-share gains and the launch of the Phonak EON platform among the factors associated with the raised outlook, while the available information did not include a specific figure for the new full-year growth range. The announced update therefore focuses on an improved profitability outlook, alongside the first-half beat of analyst expectations. The revision comes despite weak cochlear implant sales, which were affected by lower system sales in two key markets. The company’s roadshow to present its first-half fiscal 2026/27 results is scheduled to begin on November 16, 2026, with stops in Zurich, Toronto, New York, London and Frankfurt.