Highlights

  • Total Operating Revenue reaches NZ$2.31 billion for FY2026, up 14% from the prior year (12% in constant currency), with net profit after tax growing 24% to NZ$468.5 million — or 28% in constant currency
  • Hospital product group revenue grows 18% to NZ$1.51 billion, with hospital consumables up 16%, driven by changing clinical practice as a growth driver alongside genuine Volume expansion in respiratory and surgical care
  • FY2027 guidance targets operating revenue of NZ$2.45 to $2.57 billion and NPAT of NZ$500 to $550 million, representing continued double-digit Earnings growth despite an estimated 50-basis-point net gross Margin headwind from US tariffs and the Middle East conflict

Fisher &Amp; Paykel Healthcare Corporation Limited (ASX:FPH) has reported full-year results for the financial year ended 31 March 2026, with operating revenue of NZ$2.31 billion representing 14% growth (12% in constant currency) from the prior year. Net profit after tax grew 24% to NZ$468.5 million, or 28% in constant currency — an acceleration of the earnings growth rate that reflects both the underlying Demand trajectory for the company's respiratory and sleep therapy products and a continued improvement in gross margin efficiency.

The result is particularly notable given that it was achieved during a period in which hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared subdued relative to the prior year — a headwind that might ordinarily have weighed on consumables volumes. Instead, hospital consumables grew 16% for the full year, a performance management attributed to the secular shift in clinical practice as a growth driver independent of seasonal illness patterns.

Hospital Division: The Engine of Growth

The Hospital product group, which covers products used in respiratory, acute, and surgical care, generated revenue of NZ$1.51 billion for FY2026, up 18% from the prior year (15% in constant currency). Within this segment, new applications consumables grew 18% for the year (16% in constant currency), while the broader hospital consumables category grew 16% (14% in constant currency). These are materially above-market growth rates for a Business of this scale, in a segment where installed equipment bases — the hardware already deployed in hospital settings — drive the consumables revenue stream.

CEO Lewis Gradon's commentary explicitly identified changing clinical practice as a growth driver, noting that consumables growth during a subdued seasonal illness period demonstrates that the business is growing its addressable market through adoption of new clinical protocols and therapies, not simply riding cyclical demand waves. This distinction matters significantly for how the market should think about the sustainability of Fisher & Paykel Healthcare's growth trajectory. If growth is driven by clinical practice change, it is largely independent of macro conditions and is also difficult for competitors to replicate quickly, given the entrenched nature of clinician habits and hospital procurement relationships.

Homecare Division: OSA Mask Growth Continues

The Homecare product group, which includes products for obstructive sleep apnea treatment and home respiratory support, reported revenue of NZ$802.7 million for FY2026, up 8% from the prior year (7% in constant currency). OSA mask revenue grew 7% for the full year (5% in constant currency), with the company's latest mask ranges — the F&P Solo and F&P Nova — continuing to drive Market Share gains. The newest addition, the F&P Nova Nasal, launched in the United States in January 2026 to a positive reception, providing an incremental growth contributor entering FY2027.

The Homecare growth rate of 8% is lower than the 18% achieved in the Hospital segment, reflecting the more competitive dynamics of the OSA market, where Fisher & Paykel Healthcare competes with larger incumbent players. However, the consistent organic growth trajectory and the continued expansion of the product range with clinically differentiated offerings provide the platform for sustained market share capture in this global, multi-billion-dollar segment.

Gross Margin and Financial Efficiency

Gross margin improved to 63.7% for FY2026, an increase of 80 basis points (122 basis points in constant currency). This expansion was achieved despite absorbing an approximately 90-basis-point impact from US tariffs on hospital products sourced from New Zealand, making the underlying constant-currency improvement even more impressive. The margin expansion reflects the ongoing benefit of continuous improvement initiatives across the company's Manufacturing operations and the growing proportion of higher-margin consumables in the revenue mix.

Research and Development Investment was NZ$235.5 million for the year, representing 10% of revenue — a level consistent with prior years and with the company's stated commitment to sustaining a product development pipeline capable of supporting multi-year clinical adoption curves. Capital Investment during FY2026 included the continued construction of a fifth building on Fisher & Paykel Healthcare's East Tamaki campus, which will provide additional product development, manufacturing, and Warehousing capacity to support the ongoing growth programme.

Dividend and Shareholder Returns

The Board has approved a final dividend of 33.0 cents per share for the second half of FY2026, carrying full New Zealand imputation Credit and payable on 3 July 2026 with a Record Date of 23 June 2026. This brings the total dividend for FY2026 to 52.0 cents per share, a 22% increase over the prior full year total of 42.5 cents per share. The 38% increase in the final dividend alone reflects management confidence in the sustainability of the earnings base and a willingness to increase capital return in proportion to earnings growth.

FY2027 Outlook

At 30 April 2026 exchange rates, Fisher & Paykel Healthcare guides for FY2027 operating revenue of NZ$2.45 to $2.57 billion and NPAT of NZ$500 to $550 million. The guidance incorporates an estimated net 50-basis-point headwind to gross margin in constant currency from a combination of US tariffs and Middle East conflict-related disruptions. Despite this headwind, the midpoint of NPAT guidance of NZ$525 million represents approximately 12% growth on FY2026's NZ$468.5 million result — consistent with the company's historical earnings growth cadence.

Conclusion

Fisher & Paykel Healthcare's FY2026 result is a demonstration of what a genuinely differentiated medical device business looks like at scale. Revenue growth of 14%, NPAT growth of 24%, gross margin expansion in excess of 100 basis points in constant currency, and a 22% dividend increase combine to paint a picture of a business whose operational and financial flywheel is turning with increasing efficiency. The company's central claim — that clinical practice change is a sustainable and largely cycle-independent growth driver — was partially tested and validated by the FY2026 result, which delivered double-digit consumables growth during a subdued respiratory illness season.