Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares are on the move on Tuesday.
In morning trade, the ASX 200 stock is up 9% to $30.07.
This follows the release of the medical device company's FY 2026 results before the market open.
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ASX 200 stock jumps on results day
For the 12 months ended 31 March, Fisher & Paykel Healthcare reported a 14% increase in total operating revenue to NZ$2.31 billion.
A key driver of this was its Hospital Products segment, which includes products used in respiratory, acute and surgical care. This side of the business reported revenue of NZ$1.51 billion, which is up 18% on the prior corresponding period. Sales of hospital consumables were up 16% over the prior financial year.
Commenting on the performance of its Hospital Products segment, the company's managing director and CEO, Lewis Gradon, said:
Our Hospital business performed strongly across the portfolio of therapies globally. 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.
The ASX 200 stock's Homecare Products segment, which includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home, delivered revenue of NZ$802.7 million. This was an 8% increase over the prior corresponding period. OSA masks revenue was up 7% for the full year.
Gradon commented:
Our latest mask ranges, the F&P Solo and F&P Nova, continued to drive OSA mask growth. Our newest offering, the F&P Nova Nasal, was launched in the United States this past January to a positive reception.
Fisher & Paykel Healthcare revealed that its gross margin improved to 63.7% during the year. This is an increase of 80 basis points or 122 basis points in constant currency. Management advised that this reflects the ongoing progress of its continuous improvement initiatives. It also includes the approximately 90-basis-point impact in constant currency of US tariffs on hospital products sourced from New Zealand.
This ultimately led to the ASX 200 stock delivering a 24% increase in net profit after tax to NZ$469.5 million for FY 2026.
Outlook
Management is expecting further growth in FY 2027.
It has provided guidance of FY 2027 operating revenue in the range of approximately NZ$2.45 billion to NZ$2.57 billion, and net profit after tax of NZ$500 million to NZ$550 million. This represents annual growth of 6% to 11% and 4.3% to 14.7%, respectively.
It notes that this guidance includes an estimated 50-basis point net impact to its gross margin from US tariffs and the Middle East conflict.
Commenting on its outlook, Gradon said:
The growth we have achieved is uncommon, and we do not take it for granted. The key now is to sustain that momentum – continuing to innovate, improve and work closely with our customers to create lasting value.
Our products and therapies supported the care of around 24 million patients last year. This impact reflects the efforts of many thousands of people working toward a common purpose of improving outcomes. We want to acknowledge the people of Fisher & Paykel Healthcare for their commitment, and we also want to thank our clinical partners, customers, suppliers and shareholders.
