Demant Reports Strong Q2 Hearing Aid Growth, Raises 2026 Outlook

Demant reported stronger growth in the second quarter (Q2) of 2026, led by continued momentum in its Hearing Aids business and particularly strong performance in North America. The Danish hearing healthcare group—parent company of Oticon, Bernafon, Audica, HearingLife, and some of the hearing industry’s largest special equipment manufacturers—also raised its full-year financial outlook following the stronger-than-expected first half.

In the first half of 2026, Group revenue reached DKK 12.91 billion (≈US$2.0 billion), representing reported growth of 15% and organic growth of 7%. Growth accelerated in the second quarter, when revenue increased 18% as reported and 9% organically to DKK 6.67 billion ($1.0 billion).

Hearing aid growth reaches 10% in Q2

Demant’s Hearing Aids business generated external revenue of DKK 5.15 billion ($795 million) during the first half, representing organic growth of 9%. In the second quarter, external hearing aid revenue reached DKK 2.62 billion ($404 million), with organic growth accelerating to 10% from 9% in Q1.

The company estimated that the global hearing aid market grew approximately 4% in value during the first half, indicating that Demant continued to gain ground relative to overall market growth.

Hearing aid performance reflected a combination of higher unit sales and increased average selling prices. Demant attributed the ASP improvement primarily to a favorable mix of products, sales channels, and geographic markets.

North America was specifically cited as one of the strongest-performing regions for the Hearing Aids business, although Demant did not provide a separate U.S. or North American growth figure.

The company also pointed to the continued success of Oticon Zeal, its rechargeable in-the-ear hearing aid launched earlier this year, as an important contributor to growth.

Reveal expected to support second-half growth

Demant is now entering another major product cycle with the rollout of its newest hearing aid platform, including Oticon Reveal.

The Reveal launch comes as competition in the premium hearing aid market is expected to intensify, with Demant noting that several manufacturers are introducing new products during the second half of 2026, including the recent launch of GN’s ReSound Sensia.

For hearing care professionals, the combination of Zeal and Reveal gives Oticon products in two notably different form factors: Zeal as a discreet rechargeable in-the-ear (ITE) device and Reveal as the company’s new flagship AI-based platform.

Higher ASPs help improve margins

Demant’s gross margin increased 1.1 percentage points from the prior year to 77.1%. The company attributed much of the improvement to higher average selling prices in Hearing Aids, driven by product, channel, and geographic mix.

Operating profit before special items reached DKK 2.13 billion ($329 million) in the first half, up 19% in local currencies, with an operating margin of 16.5%. Adjusted earnings per share increased 20% to DKK 6.40 (≈$1.00).

Demant also said cost-reduction initiatives launched earlier this year are progressing ahead of schedule, generating approximately DKK 100 million ($15 million) in savings during the first half.

The company’s Hearing Care business, which includes its retail hearing care operations, posted organic growth of 6% during H1 and 8% in Q2. Acquisitions added substantially (10% in H1) to reported growth, primarily reflecting Demant’s acquisition of German hearing care retailer KIND.

Diagnostics recorded organic growth of 6% for the first half and 9% in Q2.

Demant raises full-year guidance

Following the strong first-half performance, Demant increased its expected organic growth for 2026 to 6-7%, up from its previous guidance of 3-6%.

The company also raised its forecast for operating profit before special items to DKK 4.4-4.8 billion ($679.3-741.1 million), compared with its previous range of DKK 4.1-4.5 billion ($633.0-694.8 million).

Demant now expects the global hearing aid market to grow approximately 3-4% in value during 2026.

The company also revised its outlook for U.S. tariffs, saying it no longer expects tariffs to create an incremental financial headwind in 2026 compared with 2025. Demant expects to receive a refund in the second half for tariffs previously paid in the United States.

SOURCE: Demant