Although the S&P/ASX 200 Index (ASX: XJO) edged higher in FY 2026, it was a bruising year for a number of former market favourites.
For example, three ASX shares that fell 50% or more during the last financial year are named below. Here's why they were sold off:
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Cochlear Ltd (ASX: COH)
Cochlear shares were hammered in FY 2026, falling around 60% over the 12 months.
The biggest blow arguably came in April, when the hearing implant leader cut its earnings guidance.
Cochlear said trading conditions for cochlear implants in developed markets had been softer than expected since January. Management pointed to hospital capacity constraints, reduced referral activity from the hearing aid channel, weaker consumer sentiment in key markets, and uncertainty from the Middle East conflict.
That was a damaging update because Cochlear has long been viewed as a high-quality healthcare compounder. Investors had been prepared to pay a premium for reliability, market leadership, and long-term growth in hearing implants.
When the company reduced its underlying net profit guidance to between $290 million and $330 million, that premium was quickly reassessed.
CSL Ltd (ASX: CSL)
CSL was another healthcare giant that had a dreadful FY 2026, with its shares crashing around 50%.
The biotechnology company suffered from a painful reset in expectations. In October, CSL downgraded its outlook after weaker US flu vaccination rates hurt its Seqirus vaccines business. It also delayed the planned spin-off of Seqirus, which had been expected to help simplify the company.
The pressure continued in February when the company reported a weak half-year result and announced the sudden exit of chief executive Paul McKenzie.
Then in May, CSL cut its FY 2026 guidance again following a review by interim CEO Gordon Naylor. It pointed to issues including US immunoglobulin inventory normalisation, lower albumin market value in China, slower growth from HEMGENIX, competition in iron products, and additional asset impairments.
CSL also faced tariff uncertainty during the year, although the company later indicated that most of its US product sales were not expected to be subject to the new tariffs.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global shares had an even rougher FY 2026, falling around 70% over the period.
The logistics software company continued its growth, but the market became increasingly uncomfortable with governance uncertainty, concerns over its transition to a new pricing and sales model, and questions about potential artificial intelligence disruption.
At the same time, WiseTech was dealing with a more demanding market for expensive technology shares. Investors were unwilling to pay a premium for ASX tech stocks and de-rated them to some of the lowest multiples that have been seen in years.
