Cochlear Ltd (ASX:COH) $104.50

The Big Picture — Cochlear Sell-Off Highlights Consumer Sensitivity

Cochlear (ASX: COH) has suffered its largest share price fall since listing, dropping as much as ~40% in early trade following a sharp downgrade to earnings guidance.

The company now expects FY profit of $290–330m, well below prior guidance of $435–460m — a downgrade of more than 30% at the midpoint.

The key driver is weakening consumer sentiment, particularly in the US, where confidence has fallen to historic lows. Cochlear flagged this is directly impacting discretionary healthcare decisions, especially among adults and seniors — its core customer base.

The sell-off — with shares down ~$60 on the day to ~$105 — highlights a broader theme: even high-quality medical device companies are not immune to cyclical pressures.

Elective healthcare spend, particularly higher-cost procedures, is proving more sensitive to consumer confidence than previously assumed.

• We see no reason to catch this falling knife until further notice.