Sonova Holding AG

Swiss hearing care company and global market leader in hearing aids and cochlear implants, operating through brands including Phonak, Unitron, AudioNova, and Advanced Bionics.

Sonova was founded in 1947 in Staefa, a small town on the shore of Lake Zurich in Switzerland. The company was originally established as AG für Elektroakustik by Bruno Bolliger and Ernst Rihs, two engineers who saw an opportunity to develop hearing aid technology in post-war Switzerland. The company's early products were analog hearing aids, which were large by modern standards but represented the state of the art at the time.

The company grew steadily through the 1950s and 1960s, developing smaller and more powerful hearing aids as transistor and integrated circuit technology advanced. In 1965, the company introduced its first behind-the-ear (BTE) hearing aid, a form factor that became the industry standard. The company was renamed Phonak in 1977, adopting the brand name that would become its most recognized consumer-facing product brand.

Phonak went public on the Swiss Exchange in 1994. The IPO provided capital for expansion and acquisitions. The company changed its corporate name from Phonak Group to Sonova Holding AG in 2007 to distinguish the parent company from the Phonak product brand and to reflect its growing portfolio of brands.

The acquisition of Advanced Bionics in 2009 was a significant strategic move. Advanced Bionics, a US-based company, developed cochlear implant systems for individuals with severe to profound hearing loss who could not benefit from conventional hearing aids. This acquisition gave Sonova entry into the cochlear implant market, which was previously dominated by Cochlear Limited (an Australian company) and MED-EL (an Austrian company). The Advanced Bionics acquisition diversified Sonova's product portfolio and expanded its addressable market.

Sonova expanded its retail presence through multiple acquisitions. The company acquired AudioNova (formerly known as Geers Audition) in 2016, adding a network of audiological care clinics across Europe. This acquisition transformed Sonova from a primarily wholesale hearing aid manufacturer into a vertically integrated company with both wholesale and retail operations. The retail network provides Sonova with direct access to consumers and a captive channel for its hearing aid products.

In 2022, Sonova acquired the consumer audio division of Sennheiser electronic GmbH. The acquisition gave Sonova the rights to use the Sennheiser brand for consumer audio products, including headphones, earbuds, and soundbars. The deal was intended to diversify Sonova's business beyond hearing health and into the broader consumer audio market. Sonova paid approximately CHF 250 million for the Sennheiser consumer audio business.

The Sennheiser consumer audio acquisition proved to be a strategic misstep. The consumer audio market is highly competitive, with established players including Apple (AirPods), Sony, Bose, and Samsung. Sonova's Consumer Hearing business, operating under the Sennheiser brand, generated sales of CHF 233.2 million in FY 2025/26, down 1.2 percent in local currencies. The business recorded a loss after tax of CHF 106.5 million in FY 2025/26, compared to a loss of CHF 17.9 million in the prior year. The loss included impairment and restructuring charges related to the planned divestment.

In March 2026, Sonova announced its intention to divest the Consumer Hearing business. The company stated that it will seek the best owner for the business, which competes in premium consumer audio under the Sennheiser brand and has distinct channels, consumer dynamics, and R&D cycles compared to Sonova's core hearing care business. The business was reclassified as discontinued operations for accounting purposes as of the FY 2025/26 results. Sonova also reorganized its reporting, renaming the Hearing Instruments business as the Wholesale business and the Audiological Care business as the Retail business.

Despite the Consumer Hearing setback, Sonova's core hearing care business performed strongly in FY 2025/26. The Wholesale business reported sales of CHF 1,861.8 million, up 9.5 percent in local currencies, with the second half accelerating to 10.9 percent growth. This was driven by the successful launch of Infinio Ultra and strong market reception of Virto R. Sonova achieved its highest year-over-year market share gain in six years in the Wholesale business. The Retail business also reported robust growth, fueled by consistent execution and growth initiatives. The Cochlear Implants business faced headwinds, particularly in China, resulting in lower sales for the year.

Sonova was ranked number 12 among the most innovative companies in Europe in 2025 by Fortune magazine, selected from 300 companies across 21 countries and 16 industries. The company's innovation pipeline includes AI-enabled hearing performance, with the Infinio platform representing a significant advancement in hearing aid technology.

Sonova publishes sustainability information through its annual report and dedicated sustainability communications. The company has committed to environmental, social, and governance (ESG) principles and has begun developing a strategic sustainability plan to embed ESG across its business.

Sonova's core business has an inherent social impact: improving the lives of people with hearing loss. The company's products enable communication, social participation, and quality of life for millions of people with hearing impairment. Sonova's ambition includes improving the lives of 30 million people as part of its strategic goals.

The company is not a Certified B Corporation. Its sustainability reporting is primarily self-reported through corporate communications and annual reports. Sonova has invested in research and development to create products that are more efficient, durable, and environmentally responsible.

As a healthcare company, Sonova is subject to medical device regulations in the markets where it operates, including FDA regulation in the United States, CE marking requirements in Europe, and equivalent regulations in other markets. These regulations govern product safety, efficacy, and quality.

The Sennheiser consumer audio acquisition and subsequent divestment is the most significant strategic controversy in Sonova's recent history. The company acquired the Sennheiser consumer audio business in 2022 with the intention of diversifying into premium consumer audio. The business generated losses and underperformed expectations, leading to the decision to divest in March 2026. The Consumer Hearing business recorded a loss after tax of CHF 106.5 million in FY 2025/26, including impairment and restructuring charges. The acquisition and divestment raise questions about Sonova's strategic judgment in entering the consumer electronics market.

As a medical device company, Sonova faces regulatory scrutiny regarding product safety, efficacy, and quality. Hearing aids and cochlear implants are regulated medical devices that require regulatory approval before marketing. Product recalls, safety issues, or regulatory non-compliance could have significant consequences for the company.

The cochlear implant market has been subject to product liability litigation. Cochlear implants are surgical devices that carry inherent risks, and manufacturers including Advanced Bionics, Cochlear Limited, and MED-EL have faced product liability claims related to device failures and complications. Sonova's Advanced Bionics business has been involved in such litigation.

Sonova's retail acquisition strategy has drawn some scrutiny regarding market concentration. The company's acquisition of AudioNova and other retail chains has made it the largest hearing care retailer in several European markets. Competition authorities have reviewed some of these acquisitions, though none have been blocked.