Highlights

  • Net profit after tax increased 24% to $468.5 million in FY26, supported by broad-based growth across hospital and homecare divisions
  • Operating Revenue rose 14% to $2.31 billion, with hospital consumables continuing to be the primary growth driver
  • Canaccord Genuity maintains a BUY rating with a price target of AUD 36.50, implying further upside from current levels

Fisher & Paykel Healthcare Corporation Ltd (ASX:FPH) has delivered a strong financial performance for FY26, reinforcing its position as a global leader in respiratory care and medical device innovation. The stock has also experienced renewed momentum in the short term, rising approximately 13% over the past five days to trade near AUD 31.29.

The company’s latest results, released on 26 May 2026, highlight double-digit revenue growth, improving margins, and a significant increase in profitability. At the same time, forward guidance suggests continued expansion into FY27, supported by structural Demand in hospital consumables and sleep apnea therapies.

Despite this strong operational performance, investors continue to assess whether recent share price gains fully reflect Earnings durability, Margin sustainability, and external risks such as tariffs and geopolitical uncertainty.

FY26 Financial Performance: Strong Growth Across Key Metrics

Fisher & Paykel Healthcare reported operating revenue of $2.31 billion for FY26, representing a 14% year-on-year increase, or 12% in constant currency terms. This growth was broad-based, with both hospital and homecare segments contributing positively.

Net profit after tax rose 24% to $468.5 million, significantly outpacing revenue growth and indicating improved Operating Leverage. On a constant currency basis, NPAT increased 28%, highlighting the impact of foreign exchange movements on reported results.

The hospital product group remained the primary growth engine, with revenue rising 18% to $1.51 billion. This segment benefited from strong demand for respiratory and acute care consumables, alongside continued adoption of evolving clinical practices across global healthcare systems.

Hospital consumables grew 16%, reflecting sustained usage intensity and expansion across geographic markets. Management noted that growth was achieved despite relatively subdued seasonal respiratory illness activity in key regions such as the United States, suggesting structural rather than cyclical drivers.

The homecare segment also delivered steady growth, with revenue increasing 8% to $802.7 million. Obstructive sleep apnea (OSA) mask revenue rose 7%, supported by uptake of newer product lines such as the F&P Solo and F&P Nova ranges.

Margin Expansion and Cost Dynamics

Gross margin improved to 63.7%, an increase of 80 basis points year-on-year. On a constant currency basis, the improvement was even more pronounced at 122 basis points, reflecting ongoing efficiency gains and Manufacturing optimisation.

However, the margin profile was not without pressure points. The company noted an approximate 90-basis-point impact from US tariffs on hospital products sourced from New Zealand. Despite this, overall margin expansion was achieved, indicating strong pricing discipline and operational efficiency improvements.

Investment in Research and Development remained a key feature of the cost structure, with $235.5 million allocated during FY26. This represents approximately 10% of revenue, underscoring the company’s continued focus on innovation and product development.

Dividends and Capital Returns

Fisher & Paykel Healthcare increased its total Dividend for FY26 by 22% to 52.0 cents per share. The final dividend of 33.0 cents per share represents a 38% increase compared to the prior year final dividend.

The dividend carries full New Zealand Imputation Credits and reflects the company’s consistent cash generation profile. While capital returns remain an important component of Shareholder value, the company continues to balance distributions with reinvestment into R&D and capacity expansion.

FY27 Outlook: Continued Growth but With External Headwinds

The company has provided FY27 guidance for operating revenue in the range of approximately $2.45 billion to $2.57 billion, with net profit after tax expected between $500 million and $550 million.

This outlook implies continued double-digit earnings growth, supported by sustained demand in hospital consumables and further adoption of homecare therapies. Management also expects gross margin improvement over the year, although this is tempered by an estimated 50-basis-point headwind from US tariffs and geopolitical factors, including Middle East instability.

At current exchange rates, currency movements remain an important variable, particularly given the company’s global revenue base across the United States, Europe, and emerging markets.

Management commentary emphasised the importance of sustaining momentum through continued innovation and close collaboration with clinical partners. The company’s Long-term Growth narrative remains anchored in expanding adoption of respiratory care technologies across both acute and chronic care settings.

Broker Ratings and Market Expectations

Sell-Side sentiment remains supportive. Canaccord Genuity maintains a BUY rating on Fisher & Paykel Healthcare with a price target of AUD 36.50, indicating expectations of further upside relative to current trading levels.

Risk Factors and Market Considerations

Key risks for Fisher & Paykel Healthcare include foreign exchange Volatility, Tariff-related cost pressures, and variability in hospital procedure volumes. Although consumable demand is relatively recurring in nature, it is still influenced by broader healthcare system utilisation trends.

Tariffs on US-sourced or distributed components remain a measurable headwind to gross margins, although the company has so far offset this through efficiency gains and pricing strategies.

Another consideration is the sustainability of high growth rates in hospital consumables, particularly if clinical adoption curves normalise over time. While structural demand drivers remain intact, incremental growth may become more dependent on innovation cycles and geographic expansion.

Conclusion

Fisher & Paykel Healthcare’s FY26 results reinforce its position as a consistent growth company within the global medical devices sector, supported by strong revenue expansion, improving margins, and robust profitability growth. The company’s ability to deliver 24% earnings growth in a relatively complex macro environment underscores the strength of its hospital consumables Franchise and ongoing product innovation strategy.

The recent share price rally reflects renewed investor confidence, supported by FY27 guidance pointing to continued growth. However, external factors such as tariffs and currency fluctuations remain important variables in the earnings trajectory.

Broker sentiment, including Canaccord Genuity’s BUY rating and AUD 36.50 target, suggests further upside potential based on current assumptions. The key focus going forward will be whether FPH can sustain its high-teens to low-twenties earnings growth profile while maintaining margin discipline in a shifting global cost environment.