Cochlear shares are slipping again. Is the comeback already over?

Cochlear Ltd (ASX: COH) shares looked to be finding their feet last week. Not anymore.

The hearing implant leader slipped 2.3% to $124.49 during Wednesday morning trade, putting the brakes on what had been an impressive recovery.

The stock had rallied around 10% last week and is still up 28% over the past month. That’s no small feat after suffering one of the biggest share price collapses on the ASX this year.

But before investors start celebrating, it’s worth remembering the bigger picture. Cochlear shares remain down 52% in 2026 and have lost almost 60% over the past 12 months.

So, is today’s weakness simply a pause after a strong rebound, or are investors being reminded why the shares fell so hard in the first place?

A reality check

It’s easy to forget just how brutal April was. On 22 April, Cochlear dropped a trading update that landed like a lead balloon.

Demand for hearing implants across developed markets came in below expectations. Then, to make matters worse, conflict in the Middle East disrupted shipments and triggered order cancellations.

Management didn’t just trim guidance; it took a chainsaw to it. The company cut its FY26 underlying net profit forecast from $435 million to $460 million down to just $290 million to $330 million.

The market’s response was swift and ruthless. Cochlear shares plunged more than 40% in a single trading session as investors suddenly questioned whether one of the ASX’s highest-quality healthcare companies had lost its mojo.

Since then, the debate has been simple: was this a nasty bump in the road or the start of a much tougher journey?

The bull case hasn’t disappeared

Here’s the thing. Cochlear’s long-term competitive position hasn’t suddenly vanished.

The company still controls around half of the global cochlear implant market, making it the clear industry leader. That leadership has been built over decades through research, innovation, and close partnerships with surgeons and hospitals around the world.

Those advantages are incredibly difficult for rivals to replicate.

The growth runway for Cochlear shares also remains enormous. More than six million people across developed markets are estimated to be eligible for cochlear implants, yet only around 3% have received one.

That leaves plenty of room for future growth as awareness increases, diagnosis rates improve, and hearing technology continues to evolve.

What do the experts think?

Brokers aren’t exactly pounding the table, but neither are they rushing for the exits.

According to TradingView data, most analysts currently rate Cochlear shares as a hold. The average 12-month price target is $127.33, only about 3% above the current share price. In other words, the market thinks the easy money from the recent rebound may already have been made.

That said, there are still plenty of optimists. Six of the 18 analysts covering Cochlear rate the healthcare stock as either a buy or strong buy. The most bullish forecast sees the stock climbing another 38% over the next year.

On the flip side, two brokers recommend selling, with the lowest target price sitting at $95, implying a downside of roughly 23%.

The post Cochlear shares are slipping again. Is the comeback already over? appeared first on The Motley Fool Australia.

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• Healthcare shares lead the ASX 200 again as sector rotation gathers pace

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.