Tariff Turmoil Looms as Fisher & Paykel Upgrades FY26 Earnings Guidance
Fisher & Paykel Healthcare has raised its full-year revenue and profit forecasts for FY26, buoyed by strong hospital product growth and favourable exchange rates, while navigating the complexities of a recent US Supreme Court tariff ruling.
- FY26 revenue guidance increased to approximately NZD 2.30 billion
- Net profit after tax forecast raised to NZD 450-470 million
- Growth driven by hospital product demand despite seasonal respiratory impacts
- US Supreme Court invalidates certain tariffs, creating refund and compliance uncertainties
- Continuous improvement initiatives expected to offset cost pressures
Guidance Upgrade Reflects Strong Operational Momentum
Fisher & Paykel Healthcare has updated its financial outlook for the fiscal year ending March 2026, signalling confidence in its ongoing growth trajectory. The company now anticipates operating revenue of around NZD 2.30 billion, up from the previous range of NZD 2.17 billion to 2.27 billion. Correspondingly, net profit after tax is expected to land between NZD 450 million and NZD 470 million, a notable increase from earlier guidance.
This revision is underpinned by robust demand across the company’s hospital product lines, which have continued to gain traction despite the seasonal fluctuations in respiratory hospitalisations typical of the Northern Hemisphere winter. CEO Lewis Gradon highlighted that these results reflect encouraging progress in shifting clinical practices, alongside ongoing efficiency gains.
Navigating Tariff Turbulence in the US Market
A significant development influencing the company’s outlook is the recent US Supreme Court decision invalidating tariffs imposed under the International Emergency Economic Powers Act. While this ruling opens the door for potential tariff refunds, Fisher & Paykel Healthcare acknowledges that the full implications remain unclear. The company is actively working through the legal and procedural complexities, including the application of free trade agreements and the Nairobi Protocol, with a comprehensive update expected alongside its full-year results in May.
Despite these uncertainties, the company maintains that the tariff situation does not materially alter its long-term strategy or growth prospects. Continuous improvement efforts are expected to mitigate cost pressures arising from tariffs and other factors, supporting sustainable profitability.
Strategic Outlook and Market Position
Fisher & Paykel Healthcare’s ability to raise guidance amid external challenges underscores its resilience and operational discipline. The company’s focus on innovation in respiratory care and surgical products, combined with disciplined cost management, positions it well to navigate evolving market dynamics. Investors will be watching closely for the detailed tariff impact assessment in the upcoming full-year results, which will provide greater clarity on financial and regulatory risks.
Bottom Line?
Fisher & Paykel Healthcare’s upgraded guidance signals strength but leaves tariff-related questions poised to shape its near-term outlook.
Questions in the middle?
- How will the US Supreme Court ruling ultimately affect Fisher & Paykel’s cost structure and margins?
- What is the timeline and potential quantum of tariff refunds the company might receive?
- Can seasonal respiratory trends in the Northern Hemisphere materially impact second-half performance?
