Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares jumped 8% today after the company delivered a strong set of half-year results, marked by double-digit revenue growth, expanding margins, and a sharp uplift in profitability.
At the time of writing, Fisher & Paykel shares were trading at $34.52 on the ASX and up 8% for the day.
The market's response was in appreciation of the broad-based strength across both the Hospital and Homecare divisions, as well as an upgrade to full-year guidance.
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What did Fisher & Paykel report?
Fisher & Paykel posted operating revenue of $1.09 billion for the six months to 30 September 2025, an increase of 14% on the same period last year, or 12% in constant currency. Net profit after tax rose sharply to $213 million, up 39%, reflecting strong demand for the company's respiratory care products and the benefits of operational efficiencies.
The hospital division was the standout contributor. Revenue in this segment reached $692.2 million, up 17%, driven by broad-based strength across the consumables portfolio and a particularly strong lift in hardware sales, which grew 21% in constant currency. Notably, this momentum came despite a relatively mild respiratory season, underscoring the structural shift toward high-flow therapy and non-invasive ventilation across global hospitals.
Homecare also delivered steady growth, with revenue rising to $395.9 million, an increase of 10%. The company highlighted robust uptake of its newest obstructive sleep apnea (OSA) masks (including the Nova™ Nasal and Nova Micro™), which are now available across several major markets. These products contributed to an 8% constant-currency lift in OSA mask revenue.
Margins improved materially during the half. Gross margin expanded to 63%, up 110 basis points year on year. Even after accounting for the drag from US tariffs on New Zealand-sourced hospital products, margin gains were supported by continuous improvement initiatives and efficiency gains across the business. Operating profit rose 31%, lifting the operating margin to 26.3%.
The board increased the interim dividend to 19 cents per share, fully imputed and payable on 16 December 2025.
Outlook
In addition to the result, FPH upgraded its full-year outlook. At prevailing exchange rates as of 31 October, the company now expects revenue of $2.17 billion to $2.27 billion (previous guidance provided in August was for revenue of $2.15billion to $2.25billion) and net profit of $410 million to $460 million (previous guidance provided in August was $390m to $440m).
Management noted that last year's Northern Hemisphere winter was unusually strong for respiratory hospitalisations. Should the upcoming season follow a similar pattern, performance is likely to land toward the higher end of guidance.
Despite the improved earnings outlook, the company emphasised that full-year margins will continue to reflect the impact of US tariffs, which are expected to reduce gross margin by around 75 basis points. Even so, Fisher & Paykel believes its operational efficiency initiatives will continue to offset part of this drag.
Foolish bottom line
Fisher & Paykel Healthcare delivered the combination of growth, margin expansion, and upgraded guidance that investors look for in a high-quality medical technology company. The strength in hospital consumables (even during a softer clinical season) suggests the company's products are becoming increasingly embedded in global care pathways. Homecare continues to provide a solid second engine of growth, supported by an expanding pipeline of OSA mask innovations.
The result reinforces FPH's long-term ambition to sustainably double its constant-currency revenue every five to six years. With clinical adoption rising, a refreshed product portfolio gaining traction, and operational efficiency improving, the market's positive reaction reflects growing confidence that the company is back on a clear upward trajectory.
