Fisher & Paykel Healthcare Forecasts 31% Profit Growth in H1 FY26
Fisher & Paykel Healthcare has issued strong first half FY26 guidance, forecasting significant revenue and profit growth while navigating new US tariffs. Meanwhile, director Pip Greenwood announces her retirement after eight years on the board.
- H1 FY26 revenue guidance of approximately $1.075 billion, up 13%
- Net profit after tax expected to grow 31% to around $200 million
- Full-year revenue outlook steady at $2.15–$2.25 billion
- US tariffs on NZ-sourced hospital products estimated to reduce profits by 75 basis points
- Director Pip Greenwood to retire effective 1 September 2025
Strong First Half Guidance Amidst Global Challenges
Fisher & Paykel Healthcare has released its financial guidance for the first half of the 2026 fiscal year, projecting revenue of approximately NZ$1.075 billion and net profit after tax near NZ$200 million. These figures represent a notable 13% increase in revenue and an impressive 31% jump in net profit compared to the same period last year, underscoring the company’s robust performance in a competitive healthcare market.
Managing Director and CEO Lewis Gradon highlighted the sustained momentum across both Homecare and Hospital product divisions, attributing growth to evolving clinical practices that continue to drive demand for their respiratory care and surgical products globally.
Full-Year Outlook and Tariff Impact
Looking ahead, Fisher & Paykel Healthcare maintains its full-year revenue forecast between NZ$2.15 billion and NZ$2.25 billion, with net profit after tax expected to range from NZ$390 million to NZ$440 million. This outlook now factors in an estimated 75-basis point profit impact from recently imposed US tariffs on hospital products manufactured in New Zealand.
The company’s strategic response involves leveraging its manufacturing footprint in Mexico, which benefits from the USMCA free trade agreement and remains tariff-exempt, alongside continuous operational improvements to mitigate cost pressures. This measured approach reflects a commitment to long-term stability and sustainable growth despite geopolitical uncertainties.
Board Changes Signal New Chapter
In governance news, director Pip Greenwood has announced her retirement effective 1 September 2025 after eight years on the board. Greenwood’s departure follows her recent appointment to the Australian board of Westpac Banking Corporation and her ongoing leadership roles with The a2 Milk Company and Westpac New Zealand.
Board Chair Neville Mitchell praised Greenwood’s valuable contributions and confirmed that the search for a new New Zealand-based director is underway, signaling a forthcoming evolution in the company’s leadership team.
Long-Term Vision and Infrastructure Investment
Fisher & Paykel Healthcare continues to emphasize long-term strategic planning, with ongoing investments in infrastructure such as the Karaka campus expansion and East Tāmaki building capacity enhancements. These initiatives are designed to support sustained innovation and market growth over the coming decades.
The company also reaffirmed its commitment to research and development, prudent capital management, and a dividend payout policy targeting approximately 65% of profits, balancing shareholder returns with reinvestment for future growth.
Bottom Line?
As Fisher & Paykel Healthcare navigates tariff challenges and board transitions, investors will watch closely how these factors shape its growth trajectory in FY26 and beyond.
Questions in the middle?
- How will Fisher & Paykel Healthcare mitigate the evolving impact of US tariffs beyond FY26?
- Who will be the successor to Pip Greenwood, and what strategic direction might they bring?
- What are the potential risks or opportunities from ongoing infrastructure investments in New Zealand?
