Cogstate Ltd has reported a remarkable 105% surge in clinical trial sales contracts for the first half of 2026, surpassing revenue guidance and signalling a more diversified and resilient business model.
- Clinical trial sales contracts jump 105% to $41.7 million
- Total revenue rises 12% to $26.9 million, exceeding guidance
- Earnings expected at top end of forecast margins
- Diversification with 45% of sales from mood, sleep, and neurological conditions
- Future contracted revenue grows to $104.9 million, supporting earnings visibility
Strong Sales Growth Drives Momentum
Cogstate Ltd (ASX – CGS) has delivered a robust business update for the first half of fiscal 2026, revealing a striking 105% increase in clinical trial sales contracts to $41.7 million. This performance not only exceeds the company’s own guidance range of $37 to $40 million but also marks Cogstate’s second-best half-year result ever.
The surge in sales contracts is underpinned by a broader and more diversified customer base, with a significant shift away from a historical reliance on Alzheimer’s disease trials. Sales into mood, sleep, and other neurological conditions now represent 45% of total contracts, a near sixfold increase compared to the prior corresponding period. This diversification enhances the resilience and repeatability of Cogstate’s revenue streams.
Revenue and Earnings Outlook Strengthened
Total revenue for the half is expected to reach $26.9 million, a 12% increase on the previous corresponding period and above the company’s forecast of $25 to $26 million. While Cogstate’s earnings guidance remains unchanged, the higher-than-expected revenue suggests earnings will likely settle towards the top end of the previously provided margin ranges – gross margin between 50% and 52%, EBITDA margin of 20% to 23%, and EBIT margin of 14% to 17.5%.
The company’s CEO, Brad O’Connor, emphasised the strategic investments in sales channels and product offerings that have broadened Cogstate’s reach. “We have invested in our sales process via new channel partners which is providing us access to an expanded customer base,” he said. “This has translated into $41.7 million of Clinical Trials sales contracts executed, our second-best result ever.”
Future Revenue Visibility and Market Positioning
Cogstate’s contracted future revenue has increased to $104.9 million, up from $99.1 million a year earlier. Of this, $21.7 million is expected to be recognised in the second half of 2026, compared to $17.5 million in the prior corresponding period, while $27.0 million is forecast for fiscal 2027, up from $23.8 million previously. This backlog provides strong earnings visibility and supports ongoing investment in the company’s growth initiatives.
The company’s evolution from a business heavily weighted towards Alzheimer’s disease trials to one with a more balanced portfolio across multiple neurological indications is a key development. This shift not only reduces risk but also positions Cogstate to capture growth in expanding markets for cognitive assessment technologies.
Looking Ahead
Cogstate plans to release its audited first half results on 19 February 2026, accompanied by a webcast featuring senior management. Investors will be keen to see how the unaudited figures hold up and to gain further clarity on the company’s strategic direction and market opportunities.
Bottom Line?
Cogstate’s strong contract growth and diversified portfolio set the stage for sustained momentum, but execution in coming quarters will be key.
Questions in the middle?
- Will Cogstate sustain its rapid growth in non-Alzheimer’s neurological indications?
- How will the shift in contract mix impact long-term revenue durability and margins?
- What new market opportunities or partnerships might Cogstate pursue next?