Company Reports

Sonova is a Swiss-based global leader in hearing care, focused on hearing aids and cochlear implants.

Sonova is a Swiss-based global leader in hearing care, focused on hearing aids and cochlear implants.

Sonova reported 5.9% constant-currency sales growth in fiscal year 2025/26, with Swiss franc depreciation of 0.2% due to currency headwinds. Normalized EBITA increased 17%, driven by operating leverage. Results were in line with our and company-compiled consensus.

Sonova presented its renewed strategy, aimed at outperforming the hearing-aid market, alongside updated midterm guidance. It targets CHF 6 billion in sales by 2030 (from CHF 3.9 billion in 2025) and indicated full-year 2026 growth will be at the lower end of guidance.

We are transferring coverage of Sonova to a new analyst. Sonova is a Swiss-based global leader in hearing care, focused on hearing aids and cochlear implants.

Sonova is a Swiss-based global leader in hearing care, focused on hearing aids and cochlear implants.

Sonova reported 4.9% organic sales growth during the first half of the 2025-26 fiscal year and increased adjusted EBITA by 16% in constant currencies. Management reaffirmed its full-year outlook, expecting 5%-9% sales growth and 14%-18% adjusted EBITA growth in constant currencies.

The annual European Hearing Instrument Conference will take place next week in Germany, where all major industry participants will attend and hold investor events. We plan to participate in this event.

Sonova benefits from favorable trends, including an aging population, increasing noise pollution, fairly low penetration rates for hearing aids in the developed world, and virtually untapped patient populations in emerging markets. Its broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains.

Sonova reported full-year 2025 results ahead of company-compiled consensus, with revenue up 7.6% and adjusted EBITA up 7.4% in constant currency. Shares are trading 5% higher intraday.

Sonova's first-half results were weaker than expected. Profitability was down on higher lead-generation costs.

Sonova benefits from favorable trends, including an aging population, increasing noise pollution, fairly low penetration rates for hearing aids in the developed world, and virtually untapped patient populations in emerging markets. Its broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains.

Narrow-moat Sonova reported 7% sales growth for second-half fiscal-year 2023-24 compared with the prior half despite a currency depreciation headwind during the year. The growth rebound aligns with our expectations as the industry gains momentum. We believe that momentum can persist for the coming year but not at the level of Sonova’s overly optimistic outlook, in our view, of 6%-9% sales growth and 7%-11% adjusted EBITA growth in local currencies, or LC. Our fair value estimate of CHF 268 per share is unchanged.

We are maintaining our fair value estimate of CHF 268 for narrow-moat Sonova following the publication of first-half results. We currently view shares as modestly undervalued.

Sonova benefits from favorable trends, including an aging population, increasing noise pollution, fairly low penetration rates for hearing aids in the developed world, and virtually untapped patient populations in emerging markets. Its broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains.

We are maintaining our fair value estimate of CHF 268 for narrow-moat Sonova following the publication of 2022-23 fiscal year earnings. Reported EBIT came in under consensus expectations, CHF 746.7 million versus CHF 781 million, as market growth remained slow, with continuing economic uncertainty delaying hearing aid replacement cycles. We currently view shares as fairly valued.

Sonova benefits from favorable trends, including an aging population, increasing noise pollution, fairly low penetration rates for hearing aids in the developed world, and virtually untapped patient populations in emerging markets. Its broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains.

We anticipate a modest decrease to our CHF 290 fair value estimate for narrow-moat Sonova as we incorporate persisting supply chain challenges and soft growth in key markets, including the United States. While management hasn’t revised guidance, it has indicated that it believes Sonova to be toward the lower end of the previously stated 15%-19% sales growth for fiscal 2022-23. We currently view shares to be undervalued.

We are anticipating a moderate decrease in our fair value estimate of CHF 290 per share for narrow-moat Sonova following management’s guidance downgrade after the first quarter of fiscal-year 2022-23. This comes due to weaker-than-expected revenue and increased expenses driven by transportation and component costs and inflation. We aren’t making any changes to our moat rating.

Sonova benefits from favorable trends, including an aging population, increasing noise pollution, fairly low penetration rates for hearing aids in the developed world, and virtually untapped patient populations in emerging markets. Its broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains.