Why Sonova’s strong earnings have not yet changed its U.S. market perception
New York, USA, 23 February 2026 – Sonova recently delivered a surprise that caught investors’ attention. The Swiss hearing-care company reported solid results and shared a confident outlook, yet its stock still trades at a discount compared with many U.S. medical-technology companies. For investors, the big question is simple: why is the market still holding back?
Behind the scenes, Sonova Holding AG has been steadily improving its business. The company, best known for its Phonak hearing devices, is benefiting from long-term trends like aging populations, rising healthcare demand, and premium medical technology. These are exactly the themes that long-term investors usually favor.
A global leader that most investors already own
Sonova does not appear on U.S. financial TV shows every day, but many American investors already have exposure without realizing it. The stock is commonly held in global healthcare ETFs, international equity funds, and diversified retirement portfolios.
Listed in Zurich and quoted over the counter in the U.S., Sonova focuses entirely on hearing care. Its business includes hearing aids, cochlear implants, audiology services, and professional audio solutions. This narrow focus has helped it build deep expertise and strong brand loyalty worldwide.
What the latest results tell us
In its most recent earnings update, Sonova showed steady revenue growth and improving profit margins, even while dealing with currency pressure and slower post-pandemic demand. Management also raised its outlook, signaling confidence in cost controls, product upgrades, and future demand.
Normally, strong earnings and positive guidance lead to higher valuations. But compared with many U.S. med-tech companies, Sonova still trades at more modest multiples. Part of that gap comes from its European base and exposure to foreign exchange swings, which can make some U.S. investors cautious.
Why the long-term story still works
Sonova’s investment case is built on a few easy-to-understand drivers.
First, people are living longer. Age-related hearing loss is becoming more common in both the U.S. and Europe, creating a steady demand that does not depend on the economic cycle.
Second, hearing aids are becoming smarter. New devices connect to smartphones, televisions, and apps, allowing companies to charge higher prices for better features and performance.
Third, Sonova controls more of its value chain than many competitors. By combining device manufacturing with audiology clinics and services, it keeps more profit within the company.
Together, these factors make Sonova look more like a defensive growth stock than a risky cyclical play.
Risks investors should watch
There are still challenges. In the U.S., over-the-counter hearing aids are gaining popularity, with large retailers and electronics brands offering cheaper alternatives. This could pressure prices at the lower end of the market.
Currency movements also matter. Sonova reports in Swiss francs, so returns for U.S. investors can rise or fall depending on how the dollar moves. For those investing through ETFs, this effect is built into fund performance.
How Sonova fits into a U.S. portfolio
From a portfolio perspective, Sonova tends to move less than the broader market. Its historical volatility is lower than that of the S&P 500, which can help balance a U.S.-heavy equity allocation.
For investors focused on dividends and cash flow, Sonova also stands out. The company has steadily returned capital through dividends and buybacks, while still investing in growth.
What analysts are saying
Most professional analysts remain positive. Many rate the stock as buy or outperform, pointing to steady growth, improving margins, and strong free cash flow. While price targets vary, the general view is that Sonova offers reasonable upside with lower risk compared with some high-flying U.S. med-tech names.
The takeaway
Sonova may not be loud, flashy, or frequently discussed, but its business fundamentals are solid. For U.S. investors willing to look beyond domestic stocks, it offers exposure to long-term healthcare growth, global diversification, and a valuation that still looks reasonable.
The recent earnings surprise suggests the story is on track. Whether the stock fully closes the gap with U.S. peers will depend on execution, currency trends, and competition. For patient investors, Sonova remains a quiet contender worth watching.
