Sonova Shares Slip as Hearing Aid Giant Lowers Growth Outlook and Plans Sennheiser Exit

Shares in Swiss hearing aid manufacturer Sonova Holding AG (SIX: SOON) dropped more than 2% on Monday after the company signaled that its full-year revenue and profit growth would land at the lower end of its previously stated guidance ranges. Despite the cautious near-term tone, Sonova simultaneously unveiled an ambitious long-term target of CHF 6 billion in annual revenue by fiscal 2030-31 and confirmed plans to sell off its Sennheiser consumer audio division.

The Zurich-based company told investors to expect fiscal 2025-26 sales growth and normalised EBITA growth to settle at the bottom of guided ranges of 5–9% and 14–18%, respectively, both measured at constant exchange rates. This follows a fiscal 2024-25 performance that saw Sonova post CHF 3.9 billion in sales and CHF 547 million in net profit.

CEO Eric Bernard struck an optimistic long-term tone, pointing to lifestyle-aligned product development, a stronger retail network, disciplined country-level execution, and improved customer service as the pillars driving above-market profitable growth going forward.

Analysts at RBC Capital Markets, who maintain an "outperform" rating with a CHF 250 price target, noted that the CHF 6 billion revenue ambition implies roughly 15% upside to current consensus and a compound annual growth rate of approximately 8.8% from 2025, well above the market consensus of 5.3%. However, RBC expressed skepticism that Sonova could hit its target without major acquisitions, citing sluggish market growth that has fallen below the historical 4–6% range with no clear rebound in sight.

On the divestiture front, Sonova confirmed it would exit its Consumer Hearing business, which operates under the Sennheiser brand license and contributes around 6% of group revenue. The unit, acquired for CHF 200 million in 2022, has seen revenues contract roughly 8% since 2023, leading RBC to anticipate a sale price below the original purchase cost. The business will be classified as discontinued operations starting from fiscal 2025-26 results ahead of a formal buyer announcement.