Fisher & Paykel Healthcare Reports Strong 1H FY26 on Hospital Hardware Strength and Homecare Growth

About Fisher & Paykel Healthcare Ltd

Fisher & Paykel Healthcare Ltd (ASX: FPH) is a global leader in respiratory care, acute hospital products and home-based obstructive sleep apnoea (OSA) solutions, serving more than 120 countries worldwide. Founded in New Zealand over 50 years ago, the company has built a longstanding reputation for innovation in humidification technology, high-flow oxygen therapy, surgical airway management and sleep apnoea care.

Today the company operates major manufacturing, research and distribution facilities across New Zealand, Mexico and China, with a product portfolio used extensively throughout hospitals, intensive care units, emergency departments and homecare channels.

In its first-half FY26 results, Fisher & Paykel Healthcare delivered one of its strongest interim performances in recent years. Revenue surpassed $1 billion for the first time at the half-year mark, while profitability expanded sharply despite a mixed global respiratory season. Management emphasised that the results reflect both structural demand for the company’s technologies and the benefits of sustained investment in manufacturing scale, clinical evidence generation and product development.

Hospital Growth Accelerates as New Therapies Gain Traction

Hospital products remain the largest contributor to Fisher & Paykel Healthcare’s earnings, with first-half revenue increasing to $692.2 million, up 17% on the prior year. Growth was broad-based across hardware, consumables and new therapy applications.

Hardware sales rose 21% in constant currency, driven by strong global interest in the F&P 950 humidification system and renewed hospital infrastructure investment following several years of constrained capital budgets. Consumables revenue grew 16% in constant currency, representing ongoing clinical acceptance of therapies such as Optiflow nasal high-flow, Airvo for subacute respiratory care, and expanded surgical humidification applications.

Management highlighted that new clinical guidelines supporting high-flow oxygen therapy in adult and paediatric settings continue to build momentum, with recent emergency medicine presentations reinforcing the role of high-flow therapy in acute respiratory care. These guidelines contribute to a long-term shift in clinical practice that supports recurrent consumables demand and embedded hardware fleet utilisation.

While global hospital admissions for respiratory infections were softer than historical averages, the company noted that demand was nonetheless resilient — underscoring the structural adoption of its therapies rather than reliance on seasonal surges.

Homecare Strengthens Through New Mask Platforms

Homecare revenue reached $395.9 million, up 10% year-on-year, supported by the successful rollout of new OSA mask families. The Nova Micro and Solo ranges continued their strong upward trajectory, while the new Nova Nasal mask — launched in New Zealand, Australia and select European markets — is expected to scale further in coming periods.

Stronger supply-chain reliability and improved patient interface design contributed to higher mask replenishment rates. Digital tools for clinicians and homecare providers have also supported increased therapy adherence, enabling better patient outcomes and stronger retention.

Management emphasised that sleep apnoea remains a global underdiagnosed condition, creating long-term structural demand. As diagnostic awareness rises and supply constraints ease across the industry, the company expects Homecare to remain a key growth engine.

Margins Strengthen on Operational Efficiencies and Scale

Gross margin improved to 63%, a 110-basis-point increase versus the prior corresponding period. This result reflects multiple ongoing efficiency initiatives, including enhanced manufacturing productivity, increased hardware volumes, procurement optimisation and continuous improvement programs across global sites.

The company continues to face a 32-basis-point drag from US tariffs on certain products manufactured in New Zealand. However, management offset the majority of these impacts through tight cost controls, improved factory throughput and strategic product mix enhancements.

Operating profit rose 31% to $286.1 million, with operating margin reaching 26.3% — up from 22.9% a year earlier. R&D investment remained elevated at 10% of revenue, consistent with the company’s strategy to innovate across hospital, surgical and OSA platforms.

Operating cash flow increased 23% to $245.8 million, supporting ongoing site development and manufacturing expansion.

Global Expansion Supports Long-Term Capacity

The company is progressing construction of its fifth major building at the East Tāmaki campus in Auckland, which will house new R&D laboratories and manufacturing lines for next-generation devices. The facility is expected to be commissioned in 2027.

Meanwhile, the proposed rezoning of the company’s future Karaka campus is advancing, forming the basis for Fisher & Paykel Healthcare’s second major New Zealand manufacturing hub. Overseas, production capacity continues to scale at the Guangzhou (China) and Tijuana (Mexico) facilities, ensuring supply resilience and enabling closer proximity to key global markets.

Management and directors visited the China manufacturing campus during the period to assess future expansion potential, reflecting the company’s commitment to diversified, multi-region manufacturing.

Upgraded Outlook Underpins Strengthening Momentum

Fisher & Paykel Healthcare upgraded its FY26 revenue guidance to $2.17 billion–$2.27 billion, with net profit after tax expected between $410 million and $460 million. The company noted that the second-half performance will depend on Northern Hemisphere winter hospital activity — a key demand driver for hospital consumables and respiratory hardware.

Even with tariff headwinds expected to impact gross margin by 75 basis points across the full year, management remains confident in its ability to deliver strong financial performance, supported by robust clinical demand, strong product pipelines and expanding manufacturing capabilities.

Conclusion

Fisher & Paykel Healthcare’s first-half FY26 result reflects the strength of its diversified medical device portfolio, the growing global acceptance of high-flow respiratory therapies and the company’s disciplined investment in manufacturing scale and product innovation. With strong demand across both Hospital and Homecare divisions, expanding global facilities and an upgraded full-year outlook, the company is entering the second half of FY26 with clear momentum. Fisher & Paykel Healthcare remains well positioned to deliver sustained growth as health systems worldwide continue to adopt therapies that improve patient outcomes, clinical efficiency and long-term respiratory care.