Fisher & Paykel Healthcare reported a robust 14% revenue increase and a 39% jump in net profit for the first half of fiscal 2026, driven by strong clinical adoption and product innovation.
- 14% growth in operating revenue to NZD 1.09 billion
- 39% increase in net profit after tax to NZD 213 million
- Hospital segment revenue up 17%, Homecare up 10%
- Gross margin improved to 63% despite tariff headwinds
- Interim dividend raised to 19.0 cents per share
Strong First Half Performance
Fisher & Paykel Healthcare Corporation Limited has delivered a compelling set of results for the first half of the 2026 financial year, ending 30 September 2025. The company reported operating revenue of NZD 1.09 billion, marking a 14% increase over the prior comparable period. Net profit after tax surged 39% to NZD 213 million, reflecting both top-line growth and operational efficiencies.
Driving this performance was broad-based strength across the company’s Hospital and Homecare product groups. Hospital revenue climbed 17% to NZD 692.2 million, supported by strong demand for respiratory support devices and consumables. Homecare revenue grew 10% to NZD 395.9 million, bolstered by new product launches such as the Nova™ Nasal mask for obstructive sleep apnea, now available in key markets including Europe.
Margin Expansion Amid Tariff Challenges
Despite a 32 basis point negative impact from US tariffs on hospital products sourced from New Zealand, Fisher & Paykel Healthcare improved its gross margin by 110 basis points to 63%. This margin expansion was attributed to ongoing efficiency initiatives and cost management efforts across the business. Operating expenses rose moderately by 8%, reflecting continued investment in sales, marketing, and research and development to support future growth.
The company’s commitment to innovation is evident in its R&D spend, which reached NZD 114.1 million, approximately 10% of revenue. This investment underpins Fisher & Paykel Healthcare’s strategy to deepen clinical engagement and expand its product pipeline, particularly in respiratory care and sleep apnea treatment.
Strategic Infrastructure and Dividend Update
Capital expenditure during the period included significant progress on the construction of a fifth building at the East Tāmaki campus in Auckland, with NZD 32.3 million spent and total commitments of NZD 145.8 million. This facility is expected to enhance research, development, and manufacturing capabilities when it opens in 2027.
Reflecting confidence in ongoing performance, the Board declared an interim dividend of 19.0 cents per share, up from 18.5 cents in the previous year. The dividend will be fully imputed and payable on 16 December 2025.
Outlook and Market Context
Fisher & Paykel Healthcare updated its full-year guidance, now expecting revenue between NZD 2.17 billion and NZD 2.27 billion, and net profit after tax in the range of NZD 410 million to NZD 460 million. The company noted that second-half growth could be influenced by the severity of the Northern Hemisphere respiratory season, which remains uncertain.
Currency fluctuations and tariff policies continue to present risks, but the company’s robust hedging program and operational discipline provide a buffer. Fisher & Paykel Healthcare’s strong balance sheet, with net cash of NZD 237.8 million and gearing at -13.5%, positions it well to navigate these challenges while investing for long-term growth.
Bottom Line?
Fisher & Paykel Healthcare’s strong half-year results and raised dividend underscore its resilience and growth momentum amid global uncertainties.
Questions in the middle?
- How will the Northern Hemisphere respiratory season impact second-half sales?
- What are the implications of ongoing US tariffs on New Zealand-sourced products?
- How will the new East Tāmaki facility enhance innovation and production capacity?