Demant Reports 6% Organic Growth in Q1 2026, Driven by Strong Oticon Zeal Launch

Demant—parent company of Oticon, Bernafon, HearingLife, and a leader in hearing-related diagnostic equipment—reported a strong start to 2026, with Group organic growth of 6% in the first quarter, supported by very strong performance in Hearing Aids and the global rollout of Oticon Zeal.

The company said its first-quarter results came in at the high end of expectations, aided by a global hearing aid market that grew about 4%—also at the upper end of Demant’s full-year assumptions. In addition to organic growth, Demant recorded 10% growth from acquisitions, primarily in Hearing Care, while exchange rate effects reduced growth by 5%. Total reported revenue growth was 11%.

Demant’s Hearing Aids business was the standout performer in Q1, with organic revenue growth from external customers of 9%. The company attributed the gain to significant market share growth in value terms, as well as the rollout of Oticon Zeal across all major markets during the quarter. Growth was supported by both unit gains and a higher average selling price (ASP), reflecting positive product and channel mix changes.

In particular, the company highlighted demand for Oticon’s portfolio of power-efficient hearing aids with advanced connectivity and AI-based signal processing.

Demant’s Hearing Care business also continued its positive trend from 2025, posting 4% organic growth in Q1. Growth was broad-based, with solid contributions from the UK and North America. The integration of KIND Group, which Demant closed in Q4 2025, progressed as planned and was the main driver of 23% acquisition-related growth in Hearing Care.

Diagnostics also posted a solid quarter, with 4% organic growth driven by service and consumables activity as well as sales of diagnostic instruments. Demant said it estimates that it gained market share in diagnostic equipment during the period.

Profitability also improved. Demant said gross margin rose compared with Q1 2025, mainly due to higher ASPs in Hearing Aids and positive business mix effects. EBIT before special items improved year over year, despite negative currency effects, supported by Hearing Aids performance and the consolidation of KIND.

The company also continued its restructuring and profitability program announced in February 2026. Several organizational changes were implemented in Q1, though Demant said only limited cost benefits were realized during the quarter. The company says it remains on track to deliver DKK 250 million (≈$39 million) in savings in 2026, with total expected savings of DKK 500 million (≈$78 million), taking full effect in 2028.

Demant maintained its 2026 outlook, calling for organic growth of 3% to 6% and EBIT before special items of DKK 4.1-4.5 billion (≈642-$704 million). However, the company said the strong reception of Oticon Zeal makes results at the lower end of those ranges less likely.

The outlook includes an expected DKK 25 million ($4 million) tariff impact on Diagnostics; a DKK 200 million ($31 million) currency exchange headwind to EBIT before special items; and an expected DKK 300 million ($47 million) EBIT contribution from KIND. Demant also expects DKK 325 million ($51 million) in special-item costs, including transaction and integration costs tied to KIND and one-time expenses related to organizational changes.

Market unit growth increased by 3% in the first quarter, with strong contributions from the U.S. and UK. However, the company believes, due to general macroeconomic uncertainty, the value growth rate in the global hearing aid market will be about 2-4% in 2026—a “conservative assumption temporarily below our medium- to long-term assumption.”

Demant said it does not plan share buybacks in 2026.

SOURCE: Demant