Fisher & Paykel Healthcare posted a 14% revenue increase to NZ$2.31 billion and a 24% rise in net profit to NZ$468.5 million for FY2026, driven by strong hospital product sales and ongoing innovation.
- 14% revenue growth to NZ$2.31 billion
- 24% net profit increase to NZ$468.5 million
- Hospital product revenue up 18%, homecare rises 8%
- Gross margin improves to 63.7%
- 22% dividend increase to 52 cents per share
Strong Sales Momentum Amid Shifting Clinical Practices
Fisher & Paykel Healthcare (ASX:FPH, NZX:FPH) closed FY2026 with a solid 14% jump in operating revenue to NZ$2.31 billion and a 24% surge in net profit after tax to NZ$468.5 million. The standout driver was the Hospital product group, which saw an 18% revenue lift to NZ$1.51 billion, buoyed by hardware and consumables sales despite subdued seasonal respiratory illness admissions in key markets like the US. This suggests a sustained shift in clinical practice is underpinning demand beyond mere patient volumes.
Homecare revenues, encompassing obstructive sleep apnea (OSA) devices, rose 8% to NZ$802.7 million. Growth in OSA masks was supported by new product launches such as the F&P Nova Nasal mask, which debuted in the US earlier this year to positive feedback.
Margin Expansion and Investment in Innovation
The company’s gross margin expanded by 80 basis points to 63.7%, reflecting operational efficiencies and continuous improvement efforts. This improvement came despite an estimated 90-basis-point drag from US tariffs on New Zealand-sourced hospital products. Fisher & Paykel Healthcare invested NZ$235.5 million in R&D, maintaining a commitment of around 10% of revenue to fuel future product development.
Construction progressed on the company’s fifth building at its East Tāmaki campus in Auckland, which will add 28,000 square metres of space for product development, manufacturing, and warehousing. Meanwhile, the planned second New Zealand campus at Karaka remains under council review, with a decision expected later this year.
Dividend Boost and Positive FY2027 Outlook
The board declared a final dividend of 33.0 cents per share, fully imputed, bringing the total dividend for FY2026 to 52.0 cents, a 22% increase on the prior year. This reflects the company’s strong cash generation and confidence in sustaining growth.
Looking ahead, Fisher & Paykel Healthcare forecasts FY2027 operating revenue between NZ$2.45 billion and NZ$2.57 billion and net profit after tax in the range of NZ$500 million to NZ$550 million. This outlook incorporates anticipated margin improvements but also factors in a 50-basis-point margin impact from ongoing US tariffs and geopolitical tensions in the Middle East.
Sustainability and Governance at the Forefront
Beyond financials, the company detailed its commitment to sustainability and governance in its comprehensive 2026 Annual Report. It highlighted ongoing efforts in environmental stewardship, including solar energy installations at manufacturing sites, sustainable procurement practices, and embedding Ecodesign principles into product development. The report also underscored a strong culture of diversity, equity and inclusion, with employee turnover improving to 10% globally and initiatives supporting mental health and wellbeing.
Governance remains robust with a majority independent board and active oversight of risk, quality, and regulatory compliance. Notably, Fisher & Paykel Healthcare navigates complex global supply chains and regulatory environments while maintaining a focus on innovation and patient outcomes.
Clinical Evidence and Market Expansion
Fisher & Paykel Healthcare’s flagship respiratory therapy, Optiflow nasal high flow (NHF), continues to gain clinical acceptance. Recent studies published in leading journals like the New England Journal of Medicine and JAMA support NHF’s role in reducing intubation rates and improving respiratory outcomes. New clinical practice guidelines from bodies such as the American College of Emergency Physicians and the UK’s NICE further endorse NHF’s expanding applications.
Geographically, the company is expanding its footprint in China, complementing its established manufacturing bases in New Zealand and Mexico. The board’s recent visit to Guangzhou underscores the strategic importance of this fast-growing market.
Bottom Line?
Fisher & Paykel Healthcare’s FY2026 results reflect uncommon growth momentum bolstered by innovation and clinical adoption, but sustaining this trajectory will require navigating tariff pressures and geopolitical uncertainties.
Questions in the middle?
- How will ongoing US tariffs and geopolitical tensions affect Fisher & Paykel Healthcare’s margin trajectory beyond FY2027?
- Can the company sustain its R&D investment and innovation pipeline to maintain clinical leadership amid intensifying competition?
- What impact will the expansion into China and the second New Zealand campus have on cost structures and global supply chain resilience?