Fisher & Paykel Healthcare Corporation Limited (ASX:FPH) closed at AUD 37.33 per share on 6 October and in a year it has gained nearly 12%. The respiratory care company issued first half guidance for the 2027 financial year and updated its full year outlook in a news release dated 21 August 2026, with figures in New Zealand dollars.

Across the broader market, the S&P/ASX 200 Health Care index [XHJ] (INDEXASX: XHJ) stood at 31,982.20, up 0.63% (+200.50 points) as of 6 October, and is down 16% over the past year. Meanwhile, the S&P/ASX 200 stood at 8,735.70, up 0.57% (+49.30 points) at the same time, and is down 2.74% over the year.

Business Model and Operational Footprint

Fisher & Paykel Healthcare designs, manufactures and markets products and systems for acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnea. Its products are sold in more than 120 countries. The company is listed in New Zealand and Australia and is headquartered in Auckland, with Lewis Gradon serving as Managing Director and CEO.

Revenue is generated across product groups that include Hospital, where the company supplies hardware devices and the consumables used with them. The release identified Demand for its latest range of hardware devices and ongoing changes in clinical practice that drive consumable sales as contributors to the start of its first half.

Sector Dynamics

Respiratory and sleep care manufacturers sell across many regulatory and trade environments, and tariffs are part of the operating backdrop. The company's guidance assumes current global Tariff rates, policies and applications for the full financial year, and it incorporates US IEEPA tariff refunds of $23 million.

Exchange rates also shape reported results for a company that earns most Revenue offshore. The guidance is stated at 31 July 2026 exchange rates of NZD:USD 0.59, NZD:EUR 0.51 and NZD:MXN 10.17, which means reported outcomes can move if those rates change.

Guidance Update Details

The first half of FY27 ends on 30 September 2026. At 31 July exchange rates and assuming a continuation of the current trading environment, the company guided to first half revenue of about $1.24 billion and net profit after tax of about $280 million. That equates to about 14% growth in reported Operating Revenue and about 24% growth in net profit after tax, excluding the effect of US tariff refunds, against the first half of FY26.

For the full 2027 financial year, guidance given in May was for operating revenue of about $2.45 billion to $2.57 billion and net profit after tax of about $500 million to $550 million. The updated ranges are operating revenue of about $2.47 billion to $2.57 billion and net profit after tax of about $525 million to $565 million. The lower end of the revenue range therefore moved up by about $20 million while the upper end was unchanged, and both ends of the profit range moved up, by about $25 million at the lower end and about $15 million at the upper end.

The first half and full year profit guidance both incorporate the $23 million of US IEEPA tariff refunds. The full year outlook continues to anticipate an overall improvement in gross margin. In the release, CEO Lewis Gradon pointed to progress in continuous improvement activities and the effect on gross Margin and other operating efficiencies, and to the company's innovation work and support for clinicians adopting new ways of delivering care. The company also scheduled its 2026 Annual Shareholders' Meeting for 25 August 2026 at 12:00pm AEST.

Growth Catalysts and Critical Operating Risks

Items the company identifies as supporting its outlook include continued demand for its newest hardware devices, clinical practice changes that drive consumable sales, and continuous improvement work aimed at gross margin and operating efficiency. The upper end of full year revenue guidance remains at about $2.57 billion, and the guided profit range now sits at about $525 million to $565 million.

The risks that follow from the release's own assumptions are also set out. Guidance depends on the current trading environment continuing, on tariff rates and policies staying as they are for the year, and on exchange rates holding near 31 July levels. The profit guidance includes a one-off element in the $23 million of tariff refunds, and the company's growth figure for first half profit is stated both with and without that item. Forward-looking guidance of this kind is subject to changes in demand, costs, regulation and currency.

For context, the guidance sets out two time horizons. The first half of FY27 ended on 30 September 2026, and the full year guidance covers the financial year that follows on from it. The company has stated that the guidance incorporates current tariff rates and policies, the $23 million of refunds and an overall improvement in gross margin.

The Bottom Line

Fisher & Paykel Healthcare's 21 August 2026 release moved its FY27 revenue and profit guidance ranges higher at the lower end and for profit overall, and introduced first half figures of about $1.24 billion in revenue and about $280 million in net profit after tax. The ranges rest on stated exchange rates, an unchanged tariff environment and $23 million of tariff refunds, which are the stated assumptions behind the figures.