On 23 March 2026, Sonova announced that, following a strategic portfolio review, Sonova intends to divest its Consumer Hearing business. As a result, the business is classified as discontinued operations, and the relevant comparative figures for the 2024/25 financial year have been restated accordingly. Figures and growth rates refer to continuing operations and exclude the Consumer Hearing business, unless otherwise stated. In addition, the Hearing Instruments business will be referred to as the Wholesale business, and the Audiological Care business as the Retail business, from this point forward. These terms will be used consistently throughout the report.

Strong market share gains, driven by successful product launches

In the 2025/26 financial year, Sonova Group sales reached CHF 3,605.9 million, up 5.9% in local currencies and down 0.2% when translated into Swiss francs. Momentum remained strong throughout the year. Growth in the Hearing Instruments segment (combined Wholesale and Retail business) accelerated in the second half against a stronger comparison base in the prior-year period, driven by successful product launches and solid execution. The Cochlear Implants business faced continued headwinds, particularly in China, resulting in lower sales for the year. Organic growth for the Group was 5.4%, while acquisitions in the reporting period, along with the full-year effect of previous acquisitions, contributed 0.5% to total sales growth. Exchange rate effects negatively impacted reported sales by CHF 221.0 million, reducing growth in Swiss francs by 6.1 percentage points. On a pro forma basis, including discontinued operations, sales were up 5.5% in local currencies.

Sales by regions

Growth across all regions

Sales in Europe, Middle East, and Africa (EMEA) increased by 4.8% in local currencies. Growth benefited from sustained market share gains driven by Sonovaʼs successful product launches, along with bolt-on acquisitions, mainly in Germany, Italy, and France.

In the United States, sales rose by 9.1% in local currency, driven by market share gains in the Wholesale business across the commercial market and in the U.S. Department of Veterans Affairs (VA), with Sonova expanding its leading position following the successful Virto R Infinio launch. Sales in the Cochlear Implants segment were impacted in the second half-year by a competitorʼs product launch.

Sales in the rest of the Americas (excluding the USA) rose 7.1% in local currencies, led by substantial market share gains in the Wholesale business and the expansion of the Retail business store network in both Canada and Brazil.

Sales in the Asia Pacific (APAC) region rose by 1.4% in local currencies. Both the Wholesale and Retail businesses posted strong growth in Australia and Japan. The Retail business in China delivered double-digit growth. The Cochlear Implants business continued to face headwinds in China following the introduction of volume-based procurement (VBP).

Sonova Group key figures

Significant improvement in profitability

Normalized figures and growth rates in these results exclude items that are not reflective of the Groupʼs underlying operating performance. For more details, please refer to the “Reconciliation of non-GAAP financial measures” table at the end of the Financial Review. These items include:

• M&A related costs: In the 2025/26 financial year, transaction and integration costs related to acquisitions amounted to CHF 0.6 million (2024/25: CHF 7.5 million).
• Legal and legacy items: The Group incurred CHF 28.2 million in legal costs (2024/25: CHF 6.3 million) related to patent-litigation fees and settlement. The reassessment of product liability provisions for a legacy product in the Cochlear Implants segment resulted in costs of CHF 23.6 million.
• Software assets: As part of the strategic review, software assets were reassessed to ensure they align with the companyʼs future direction. Certain software assets were found to be unlikely to deliver the economic benefits originally anticipated. This led to a non-cash impairment charge of CHF 34.7 million.
• Tax impacts: Impacts from tax reforms increased reported income taxes by CHF 3.6 million (2024/25: CHF 49.5 million).

Overall, normalizations in the period primarily reflect non-recurring legal, legacy, and strategic items, with lower acquisition-related costs.

Gross profit amounted to CHF 2,658.3 million, up 5.8% in local currencies but down 1.0% in Swiss francs. Growth was supported by higher volume and positive ASP development in the Wholesale and Retail businesses. While the initial ramp-up and regionalization of Sonovaʼs manufacturing and logistics footprint resulted in elevated costs in the first half-year, they delivered sustainable improvements by year-end. The gross profit margin reached 73.7%, down by 0.1 percentage points in local currencies or 0.6 percentage points in Swiss francs.

Excluding acquisition-related amortization, reported operating expenses were CHF 1,934.1 million (2024/25: CHF 1,916.1 million). Normalized operating expenses before acquisition-related amortization rose by 1.1% in local currencies but declined by 2.9% in Swiss francs to CHF 1,847.1 million (2024/25: CHF 1,902.2 million). Cost-efficiency initiatives in the Retail business undertaken in the 2024/25 financial year contributed to positive operating leverage. The Group continued to invest in innovation, with research and development (R&D) expenses before acquisition-related amortization up by 3.8% in local currencies to CHF 217.7 million.

Normalized sales and marketing costs before acquisition-related amortization increased by 1.5% in local currencies to CHF 1,287.5 million, representing 35.7% of sales (2024/25: 36.9%). This resulted in significant operating leverage, with continued investments in lead generation in the Retail business. Normalized general and administration costs before acquisition-related amortization increased by 0.2% in local currencies, reaching CHF 343.6 million or 9.5% of sales (2024/25: 9.8%). Other income was CHF 1.8 million (2024/25: CHF 0.2 million).

Normalized operating profit before acquisition-related amortization (EBITA) rose by 17.3% in local currencies and 3.7% in Swiss francs, reaching CHF 811.2 million (2024/25: CHF 782.1 million). This included restructuring costs of CHF 16.7 million (2024/25: CHF 43.9 million). The normalized EBITA margin was 22.5%, up 2.3 percentage points in local currencies and 0.8 percentage points in Swiss francs. The strong headwind from exchange rate developments reduced normalized EBITA by CHF 106.5 million and margin by 1.5 percentage points. On a pro forma basis, including discontinued operations, normalized EBITA would have been up 14.5% in local currencies. Reported EBITA increased by 7.7% in local currencies and declined 5.8% in Swiss francs, totaling CHF 724.2 million (2024/25: CHF 768.3 million). Acquisition-related amortization was CHF 48.3 million (2024/25: CHF 48.5 million).

Reported operating profit (EBIT) amounted to CHF 675.8 million (2024/25: CHF 719.8 million), up 7.9% in local currencies and down 6.1% in Swiss francs. Net financial expenses, including associates, were CHF 34.1 million (2024/25: CHF 35.5 million), with non-cash mark-to-market adjustments and realized losses on financial investments offset by a gain on the disposal of an investment in associates. Income taxes amounted to CHF 95.7 million (2024/25: CHF 119.4 million). Basic earnings per share (EPS) from continuing operations reached CHF 9.02, up 13.6% in local currencies and down 3.8% in Swiss francs. Normalized EPS from continuing operations rose 16.0% in local currency terms and remained flat in Swiss francs at CHF 10.42.

Following the decision to divest the Consumer Hearing business, this business is classified as discontinued operations. The loss after tax from discontinued operations amounted to CHF 106.5 million (2024/25: CHF 17.9 million). This is attributable to the operating result of the business as well as non-cash impairments related to the planned divestment of the business. Basic earnings per share (EPS), including discontinued operations, was CHF 7.23.

Hearing Instruments segment – Strong sales growth and acceleration in the second half

Sales in the Hearing Instruments segment totaled CHF 3,353.8 million, reflecting an increase of 7.5% in local currencies and 1.4% in Swiss francs. Organic sales growth was 6.9%, while acquisitions contributed an additional 0.6% equating to CHF 18.7 million.

Sales in the Wholesale business reached CHF 1,861.8 million, up 9.5% in local currencies. Growth was driven by strong market reception of Infinio Ultra, which built on the success of the Infinio and Infinio Sphere™ platforms, and of Virto R Infinio. As a result, the business significantly expanded its market share globally and achieved double-digit growth in the second half-year, on a much higher comparison base from the prior-year period, reflecting the strong momentum.

The Retail business reported sales of CHF 1,491.9 million, representing an increase of 5.1% in local currencies. Organic growth reached 3.8%. Reinvesting a portion of cost savings from measures implemented in the 2024/25 financial year into targeted lead-generation initiatives contributed to above-market growth. Acquisitions lifted sales by 1.3% (including the full-year effect of prior year acquisitions), mainly in Germany, Australia, and Canada.

Sales by business – Hearing Instruments segment

Normalized EBITA rose by 20.6% in local currencies to CHF 793.7 million (2024/25: CHF 747.5 million), corresponding to a margin of 23.7% (2024/25: 22.6%). Reported EBITA for the Hearing Instruments segment was CHF 758.4 million, up 17.1% in local currencies.

Cochlear Implants segment – Continued headwinds

Sales in the Cochlear Implants segment totaled CHF 252.1 million, a decline of 11.1% in local currencies and 17.1% in Swiss francs. System sales were down 10.3% in local currencies. The business in China was substantially hampered by challenges following the introduction of volume-based procurement (VBP). Developed markets saw increased competitive pressure following a product launch by the largest competitor in the second half-year. Excluding China, system sales were up 0.7% in local currencies. Sales of upgrades and accessories were down by 13.1% in local currencies, as many recipients have already adopted the Marvel sound processor technology introduced in 2021.

Sales by product groups – Cochlear Implants segment

Normalized EBITA reached CHF 17.2 million (2024/25: CHF 34.6 million), representing a margin of 6.8% (2024/25: 11.4%). Strict cost control and the weaker US dollar only partly offset negative operating leverage associated with lower sales. Reported EBITA loss for the Cochlear Implants segment amounted to CHF 34.6 million and includes legal costs and the increase in a legacy product liability provision mentioned above.

Cash flow

Cash flow from operating activities totaled CHF 734.5 million (2024/25: CHF 790.3 million). The development was driven by adverse currency impacts and the phasing of tax payments, while changes in working capital were stable versus the prior year. Operating free cash flow reached CHF 519.1 million (2024/25: CHF 581.7 million). This reflects lower cash outflows related to net purchases of tangible and intangible assets of CHF 102.0 million (2024/25: CHF 130.1 million) and higher net investments in financial assets.

Cash consideration for acquisitions amounted to CHF 45.5 million (2024/25: CHF 71.9 million), reflecting the continued expansion of the retail network through bolt-on acquisitions. In summary, this resulted in a free cash flow of CHF 473.7 million (2024/25: CHF 509.8 million). The cash outflow from financing activities was CHF 451.3 million, which includes the dividend payment of CHF 262.3 million, repayments of lease liabilities of CHF 72.0 million, and a net outflow from borrowings of CHF 26.7 million.

Balance sheet

Cash and cash equivalents stood at CHF 721.9 million compared to CHF 686.9 million at the end of the 2024/25 financial year. Capital employed reached CHF 3,519.4 million compared to CHF 3,578.7 million at the end of the 2024/25 financial year.

The Groupʼs equity of CHF 2,635.8 million represents an equity ratio of 46.8% compared to 45.0% at the end of the 2024/25 financial year. The net debt position decreased to CHF 994.3 million compared to CHF 1,102.4 million at the end of the 2024/25 financial year. The net debt/EBITDA ratio reached 1.1x compared to 1.2x at the end of the 2024/25 financial year. The return on capital employed (ROCE) reached 19.0% compared to 19.9% in the prior year.

Outlook 2026/27

Sonova is entering the 2026/27 financial year from a position of strength, executing its renewed strategy presented in March 2026 and building on strong momentum in sales and earnings. The Group expects a gradual market recovery through the year, with overall market growth of 2% – 4% for the financial year, improving toward the mid-term assumption of 3% – 5%.

In Wholesale, Sonova expects to continue to outperform the market, supported by upcoming product launches including a new platform, and by the Groupʼs leadership in AI-enabled hearing performance. In Retail, the Group anticipates robust organic growth, further supported by value-accretive M&A contributions and an accelerated pace of new store openings. The Cochlear Implants business is expected to face headwinds in the first half, with an anticipated pick-up in the second half following the planned launch of a new sound processor, subject to regulatory approvals.

Continued growth and disciplined cost management will help fund investments in strategic initiatives across operations, R&D, IT systems, and the development of Asia-focused solutions, while continuing to deliver operating leverage. The outlook is based on current market sentiment and growth trends in the hearing care market and assumes no material disruptions beyond those known at publication.

For the 2026/27 financial year, Sonova expects consolidated sales to rise by 5% – 8% and core EBIT to grow by 7% – 10% at constant exchange rates.

Reconciliation of non-GAAP financial measures

Share price performance history¹⁾