CSL Ltd (ASX: CSL) shares surged 18% to $158.24 in early afternoon trade on Tuesday That's a welcome change for shareholders after the ASX healthcare stock lost 42% over the past 12 months.
By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 2% over the same period.
Investors appear encouraged by CSL's latest full-year results and, in particular, management's outlook following what the company describes as a 'reset year'.
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CSL's reset year
For the year ended 30 June 2026, CSL reported total revenue of US$15.8 billion, down 1% year-over-year. Underlying NPATA fell 2% to US$3.1 billion.
The headline statutory result was considerably weaker, with CSL reporting a net loss after tax of US$2.6 billion. However, this reflected significant one-off costs and impairments.
CSL spent FY26 undertaking a broad transformation program, including about US$176 million in cost savings, the integration of its Behring and Vifor operations and US$799 million in restructuring costs.
The company also booked US$7.1 billion of pre-tax asset impairments, largely reflecting changes to commercial outlooks, generic competition, regulatory developments and site-utilisation assumptions.
What comes next for CSL shares?
Importantly, management expects FY27 to mark a return towards growth. Revenue is forecast to remain broadly steady, while underlying NPAT is expected to increase by approximately 5%.
CSL Behring is expected to deliver mid-single-digit revenue growth, supported particularly by immunoglobulin demand. CSL Seqirus is targeting low-single-digit growth, although softer US immunisation rates remain a headwind.
Vifor, meanwhile, is expected to decline amid generic competition and regulatory changes.
CSL is also continuing to invest for the longer term. The company announced a new US$1.1 billion share buyback and remains focused on developing new therapies and expanding its US plasma manufacturing network.
It has also entered a strategic partnership with VarmX for a novel blood-coagulation treatment.
What did management say?
Interim CEO and Managing Director Gordon Naylor said:
FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth.
Plasma market fundamentals and demand remain robust and momentum is building behind our newer therapies, such as ANDEMBRY® and HEMGENIX.
We have made solid progress on our transformation program and continue to simplify the business. We have also invested in our commercial capabilities and development programs to drive top line growth in the future.
For CSL shareholders, the sharp share price rebound suggests the market is willing to look beyond FY26's difficult numbers and focus instead on the company's potential return to sustainable growth.
