Sonova's Strategic Pivot: Exiting Consumer Audio to Fortify Core Medical Business

Sonova classifies consumer audio as discontinued, refocusing on hearing aids & implants. Targets 6B CHF revenue by 2031 amid near-term moderated forecasts.

In a decisive strategic shift, Sonova Holding AG is preparing to divest its consumer audio division. The Swiss hearing solutions group has formally classified this segment as a "discontinued operation," signaling CEO Eric Bernard's commitment to refocusing the company entirely on its medical technology roots. This move comes as the company's share price has faced recent pressure, with management betting that a sharper focus on its core hearing systems and implants will stabilize margins and restore investor confidence.

Long-Term Ambition Meets Short-Term Caution

Sonova's leadership has laid out an ambitious growth roadmap targeting 2031. The company aims to achieve group revenue of 6 billion Swiss francs, driven by annual sales growth of 5% to 10%. Furthermore, it is targeting an increase in adjusted EBIT of up to 12% per annum. However, for the immediate turnaround period, expectations are being moderated. For the upcoming fiscal 2025/26 results, scheduled for release on May 26, 2026, the company anticipates figures at the lower end of its forecast ranges. This full-year report will provide critical data on the progress of this strategic realignment.

Analyst Outlook Remains Constructive

Despite near-term operational challenges, the broader investment community maintains a fundamentally positive stance on Sonova's equity. After the stock touched a low around 163 CHF in March 2026, the average analyst price target sits notably higher at 232.28 CHF. Some individual estimates even extend as high as 310 CHF. For the 2026 fiscal year, earnings per share are projected to reach 9.46 CHF, while the dividend is expected to remain robust at a planned 4.25 CHF.

Resource Reallocation to Core Growth Engines

The decision to exit the consumer audio business is driven by its diminishing contribution, which recently accounted for just 6% of total revenue and saw an 8% decline in sales since 2023. By shedding this unit, Sonova intends to free up resources to accelerate growth in its primary areas: hearing aids and cochlear implants. The company is pinning its near-term product hopes on new platforms like Infinio and Sphere, which are viewed as central catalysts for performance in the coming quarters. This consolidation underscores a clear strategic priority to deepen its expertise and market position in medical-grade hearing solutions.