Fisher & Paykel Healthcare Corporation Limited Analysis

Overview

Fisher & Paykel Healthcare is a global leader in medical devices and systems for use in respiratory care and acute care, and in the treatment of obstructive sleep apnea. The company has a consistent growth strategy to provide an expanding range of innovative medical devices which can help to improve care and outcomes for patients in an increasing range of applications.

Its products are sold to hospitals and healthcare facilities around the world through direct sales offices operations and a network of distributors that sell to hospitals, homecare providers and other manufacturers of medical devices.

Formerly Fisher & Paykel Industries, Fisher & Paykel Healthcare arose from the separation of the major trading businesses of Fisher & Paykel Industries into Appliances and Healthcare in November 2001. The company's securities are listed in both New Zealand and Australia.

Performance

The following information was extracted from Fisher & Paykel Healthcare Corporation Limited's full year results, released 26 May 2026:

Fisher & Paykel Healthcare reports strong revenue and profit growth for the 2026 financial year

Auckland, New Zealand, 26 May 2026 – Fisher & Paykel Healthcare Corporation Limited today announced its results for the full year ended 31 March 2026

Total operating revenue was $2.31 billion, an increase of 14% from the prior financial year, or 12% in constant currency. Net profit after tax for the financial year was $468.5 million, a 24% increase over the 2025 financial year, or 28% in constant currency.

For the Hospital product group, which includes products used in respiratory, acute and surgical care, revenue for the full year was $1.51 billion, up 18% from the previous financial year, or 15% in constant currency. Sales of hospital consumables were up 16% over the prior financial year, or 14% in constant currency.

“Our Hospital business performed strongly across the portfolio of therapies globally,” said Managing Director and CEO Lewis Gradon.

“We were especially encouraged by consumables growth, given it occurred during a period in which hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared to be subdued compared to the previous year. This suggests that changing clinical practice continues to be a strong growth driver.”

For the Homecare product group, which includes products used in the treatment of obstructive sleep apnea (OSA) and respiratory support in the home, revenue for the full year was $802.7 million, an increase of 8% from the previous financial year, or 7% in constant currency. OSA masks revenue was up 7% for the full year, or 5% in constant currency.

“Our latest mask ranges, the F&P Solo and F&P Nova, continued to drive OSA mask growth,” said Mr Gradon. “Our newest offering, the F&P Nova Nasal, was launched in the United States this past January to a positive reception.”

The company’s gross margin improved to 63.7%, an increase of 80 basis points, or 122 basis points in constant currency. This reflects the ongoing progress of the company’s continuous improvement initiatives and incorporates the approximately 90-basis-point impact in constant currency of US tariffs on hospital products sourced from New Zealand.

During the 2026 financial year, the company invested $235.5 million in research and development and also progressed construction on its fifth building on its East Tāmaki campus, which will add more space for product development, as well as additional manufacturing and warehousing areas.