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Stock Crash: Cochlear Implant systems developer stock tanks 40% on profit guidance cutThe sharp in earnings projections for the new year has resulted in the stock taking a 40% plunge on Wednesday, marking the biggest single day fall since its IPO back in 1995.By CNBC-TV18 April 22, 2026, 7:56:33 AM IST (Published)2 Min ReadShares of Cochlear Ltd., listed on the Australian stock exchanges, fell as much as 40% on Wednesday, April 22, in response to the company cutting its profit guidance for the full fiscal year.

This is the biggest drop for the stock since its Initial Public Offering (IPO) back in 1995.

The company, based out of Australia and known for implantable hearing devices, now expects its full year profit to range between A$290 million to A$330 million. This is a sharp cut from the earlier projection of A$435 million to A$460 million. The company had said that the earlier projection will be at the lower end of the range.

"Consumer sentiment has declined in key markets, reaching historic lows in the US," according to a statement by Cochlear. "The decline appears to be affecting discretionary healthcare decisions in the adults and seniors segment, adding to demand uncertainty in the near term."

Cochlear also said that trading conditions for implants in developed markets have been softer-than-expected, while the fourth quarter sales also faced issues due to the Iran war. Cochlear added that it may also need to consider provisioning for some receivables due to the war, with a net profit impact of up to A$10 million.

Surgical volumes have also been contained in Western Europe, resulting in growing waiting lists for surgeries in countries including the UK and Germany.

Despite headwinds in key markets, the company said it remains confident in its growth strategy and will accelerate plans to reshape the cost base to provide increased capacity to invest in growth.

(With Inputs From Agencies)Continue Reading