There has been nowhere to hide in ASX healthcare in 2026.
CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and ResMed Inc (ASX: RMD) have all tumbled to multi-year lows this year as a toxic combination of earnings downgrades, sector rotation, and macro headwinds drove investors toward energy and resources stocks.
But dramatic selloffs in high-quality businesses have a habit of creating opportunities for investors who can think past the next quarter.
Here is where each stock stands today.
Image source: Getty Images
CSL
The fall at CSL has been extraordinary by any measure.
CSL shares are down approximately 43% in 2026 and more than 60% over the past twelve months, hitting a 10-year low in recent weeks.
The most recent catalyst was another guidance downgrade.
Interim CEO Gordon Naylor lowered FY2026 revenue expectations to approximately US$15.2 billion on a constant currency basis following a 90-day strategic review.
The market's patience has run out.
Management has cited weakness in China albumin pricing, inventory normalisation in the US immunoglobulin market, and operational challenges as the primary drivers.
The bull case rests on CSL's plasma-derived therapies business, which operates behind barriers to entry that no competitor has been able to meaningfully breach in decades.
Plasma collection volumes have recovered from post-COVID lows.
What's more, the Vifor integration is progressing.
And insiders are now buying shares on market for the first time in years, a signal that those closest to the business believe the selloff has gone too far.
The market wants proof of such a sustained recovery, and that means a sustained recovery in sentiment may still take several quarters to materialise.
But at current prices, CSL trades on a valuation it has not seen since before the pandemic.
Cochlear
Cochlear's 2026 has been even more brutal than CSL's.
The shares are down 62% year to date, touching an eleven-year low in recent weeks.
The April guidance downgrade, which cut FY2026 underlying net profit from $435 to $460 million down to $290 to $330 million, was one of the worst earnings cuts in the company's listed history.
The causes were a mix of the temporary and the concerning.
Hospital capacity constraints, reduced referral activity, and Middle East disruptions pushed patients to delay surgery.
Cost of living pressures in the US appear to be causing some patients to treat cochlear implants as discretionary rather than essential, at least in the short term.
However, the long-term demand picture has not changed.
Cochlear holds approximately 50% global market share in cochlear implants, with just 3% penetration of an addressable market exceeding six million people in developed markets alone.
Brokers including Jarden and Wilsons Advisory still see significant upside from current levels, with some flagging upside of more than 100% over twelve months.
CEO Dig Howitt said:
The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment… cochlear implants are also associated with a lower incidence of dementia.
Investors should note that surgeries are being delayed, not cancelled.
ResMed
ResMed's 2026 selloff is being driven by fears about GLP-1 obesity drugs threatening demand for CPAP devices.
Those fears have proven to be significantly overstated.
The company's own data from 1.7 million patients shows that patients on both GLP-1 therapy and CPAP therapy actually show higher adherence rates than those on CPAP alone.
In Q3 FY2026, ResMed delivered revenue of US$1.29 billion, up 11% year-on-year, with operating income rising 22% and gross margins improving to 58.9%.
CEO Mick Farrell said at the earnings call:
We believe GLP-1s are truly a megatrend, and a once-in-a-generation demand-gen opportunity for ResMed Inc.
Yet the shares remain down approximately 22% in 2026 as sentiment lags the fundamental reality.
At current prices, ResMed trades materially below fair value according to analysts who have updated their models following the Q3 result.
Foolish takeaway
CSL, Cochlear, and ResMed are three of the highest-quality healthcare businesses ever listed on the ASX.
All three are dealing with headwinds that are temporary, cyclical, or based on fears that have not materialised.
That does not mean the bottom is in, and near-term volatility will likely continue.
But for investors with multi-year time horizons, the entry points available in each of these ASX healthcare stocks today look considerably more attractive than anything on offer in the past five years.
