July VA Data: Demant Extends Share Gains; Sonova Rebounds from June

Overview

The report tracks U.S. Department of Veterans Affairs (VA) hearing-aid procurement and monthly market-share data for July 2026. VA channel unit sales rose 6% year over year, extending June's growth trend; the channel provides high-frequency, granular share data and is viewed as a leading indicator of new-product acceptance in the broader hearing-aid market.

Core views

Demant has continued to gain share following the May launch of Oticon Zeal, rising 30 basis points month over month in July. Sonova gained 45 basis points month over month, recapturing its June overall share loss, although its share in the key ITE category declined slightly. GN's share continued to weaken, indicating that its recovery in the VA channel still faces challenges.

Analysis framework

The analysis compares VA monthly procurement volumes, manufacturer and product-category shares, historical trends, and new-product launch timing, and assesses investment implications in conjunction with each company's VA revenue exposure and valuation framework.

Methodology notes

• Channel Data AnalysisVA Monthly Share Tracking

  Assessing competitive changes through monthly procurement volumes and manufacturer shares

  VA is one of the few channels with available monthly granular hearing-aid market-share data, enabling observation of share changes following new-product introductions.

• Valuation methodsP/E and DCF Weighted Valuation

  Combination of relative valuation and cash-flow valuation

  Demant's and Sonova's target prices respectively use a weighted approach of 70% P/E and 30% DCF; the DCF assumes an 8% WACC and a 3% terminal growth rate.

• Valuation methodsSum-of-the-Parts Valuation

  GN is valued by business segment

  GN is valued based on the cash and share consideration from the sale price, plus its continuing operations valued at 10x 2026 adjusted EBIT EV/adjusted EBIT.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Sonova Holding AG

  VA channel leader and primary beneficiary

  Strengths

  Overall share gained 45 basis points month over month in July; it remains the leader in the combined ITE category with 44% share; VA exposure accounts for approximately 13% of hearing-aid wholesale revenue.

  Weaknesses

  Combined ITE-category share fell 1 percentage point from June; Sphere's share of rechargeable RIC declined from approximately 54% to approximately 52%.

  Comparison

  Leads Starkey's 26% and Demant's 24% in the combined ITE category, but Demant's share growth is faster.

  Risks

  Competitive new-product pressure, slowing hearing-aid market growth due to macroeconomic weakness, and strengthening of the Swiss franc against the euro or U.S. dollar.

• Demant A/S

  Share gainer driven by the new Zeal product

  Strengths

  Gained share for two consecutive months following the Zeal launch; overall VA share rose to 23.1% in July, while combined ITE-category share rose to 24%.

  Weaknesses

  VA channel revenue exposure is approximately 5%, making its direct financial sensitivity to the channel lower than Sonova's.

  Comparison

  Ranks behind Sonova in the combined ITE category, but its share rose from 22% in June to 24%, leading in the magnitude of increase.

  Risks

  Macroeconomic uncertainty, changes in government reimbursement policy, competitors' new products, expansion of the U.S. OTC market, and currency fluctuations.

• GN Store Nord A/S

  VA channel share loser

  Strengths

  ReSound product iterations had previously driven improvements in the rechargeable BTE category and overall share.

  Weaknesses

  Overall share declined 30 basis points month over month in July; historically, VA share has fallen from 21% in 2017 to approximately 10% in 2025.

  Comparison

  Contrasts with the July share gains of Sonova and Demant.

  Risks

  New-product performance below expectations and weakening consumer conditions could further pressure business performance.

Key data

• July VA hearing-aid unit sales year-over-year growth+6%The same as the June year-over-year growth rate, unadjusted for differences in trading days.
• Demant July month-over-month share change+30 basis pointsContinued to rise after gaining 50 basis points in June, with overall VA share reaching 23.1%.
• Sonova July month-over-month share change+45 basis pointsRecaptured its June overall share loss.
• Sonova share in the combined ITE category44%Down from 45% in June; Demant rose from 22% to 24%.
• Sphere share of Sonova rechargeable RIC unit salesapproximately 52%Down from approximately 54% in June; Sphere is priced approximately 10% above standard Infinio in the VA channel.
• VA share of U.S. hearing-aid unit sales15%2025 data; veterans account for approximately 6% of the U.S. adult population.
• VA revenue exposureSonova approximately 13%, Demant approximately 5%, GN approximately 4%Estimated proportion of each company's hearing-aid wholesale sales.
• VA average selling priceapproximately $480Below the approximately $600–1,100 private wholesale market range.

Impact & implications

Demant's consecutive share gains provide positive validation of acceptance of the new Zeal product and may also foreshadow improved competitiveness in other markets. Sonova retains VA channel leadership and achieved an overall share rebound; a higher Sphere product-mix contribution could support average selling prices, although the decline in ITE-category share and lower Sphere penetration warrant monitoring. GN's continued VA channel share losses reinforce the view that it remains relatively under pressure.

Risks

• VA monthly data exhibit normal volatility, and one-month share changes may not represent a sustained trend.
• Shares during the early stages of new-product introductions typically partially normalize in subsequent months.
• VA channel growth has slowed to an approximately 3% CAGR over the past five years, affected by a slower post-pandemic reopening and a shortage of audiologists.
• VA procurement prices are below those in the private market; the translation of channel growth into revenue and profit depends on pricing, product mix, and costs.
• Government reimbursement policies, the macroeconomic environment, currency movements, and competitive new products may all alter target prices and investment views.

What to watch

• Whether Demant Zeal can maintain or expand VA share in the coming months.
• Whether Sonova's share in the ITE category can stabilize and rebound, and whether Sphere penetration in rechargeable RIC increases.
• Whether GN's new products can reverse its declining VA share trend.
• Whether VA monthly unit sales can sustain year-over-year growth, and whether audiologist supply and channel operations improve.
• New-product launches by each manufacturer and their VA-channel pricing, durability, and fitting feedback.