Fisher & Paykel Healthcare has upgraded its Fisher & Paykel Healthcare FY26 Guidance, now expecting operating revenue of approximately $2.30 billion and net profit after tax between $450 million and $470 million for the financial year ending 31 March 2026. The updated figures mark a significant lift from previous guidance issued in November 2025, which anticipated revenue between $2.17 billion and $2.27 billion and net profit after tax ranging from $410 million to $460 million. The revised guidance is based on 31 January 2026 exchange rates of NZD:USD 0.60, compared to the 0.57 rate used in prior forecasts, and excludes any potential US tariff refunds.
Fisher & Paykel Healthcare lifts FY26 guidance as hospital product demand accelerates
The upgraded Fisher & Paykel Healthcare FY26 Guidance reflects stronger-than-anticipated performance across the company’s Hospital product portfolio during the second half of the financial year. The medical device manufacturer, listed on both the New Zealand and Australian stock exchanges (ASX: FPH), announced the revision on 23 February 2026, citing pleasing progress in efforts to change clinical practice and operational efficiency gains.
The previous guidance, provided on 29 November 2025, was calculated using an exchange rate assumption of NZD:USD 0.57. The updated forecasts incorporate a slightly stronger New Zealand dollar at 0.60, alongside actual performance data through 31 January 2026. Importantly, management has confirmed the new guidance does not factor in any potential tariff refunds from the United States, suggesting possible upside if refund applications prove successful.
| Metric | Previous Guidance (Nov 2025) | Updated Guidance (Feb 2026) | Change |
|---|---|---|---|
| Operating Revenue | $2.17 – $2.27 billion | ~$2.30 billion | ↑ |
| Net Profit After Tax | $410 – $460 million | $450 – $470 million | ↑ |
| Exchange Rate Assumption | NZD:USD 0.57 | NZD:USD 0.60 | — |
For investors, mid-year guidance upgrades provide enhanced earnings visibility and signal that demand trends are exceeding internal expectations. The lift to both revenue and profit ranges indicates the company is capturing market share whilst maintaining margin discipline.
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What’s driving the guidance upgrade
The improved outlook stems from good growth across the full range of Hospital products during the second half of the financial year, according to the company’s announcement. Managing Director and CEO Lewis Gradon highlighted that performance to date suggests pleasing progress in efforts to change clinical practice, a strategic initiative that underpins long-term revenue growth as healthcare facilities adopt the company’s respiratory care protocols.
Lewis Gradon, Managing Director and CEO
“We have continued to see good growth across the full range of our Hospital products so far during our second half… our performance to date suggests pleasing progress in our efforts to change clinical practice.”
Beyond revenue growth, the company is also benefiting from continuous improvement activities and other efficiency gains that are contributing to improvements in both gross margin and operating margin. These operational enhancements suggest the business is extracting greater profitability from each dollar of revenue, a positive indicator of operating leverage.
Management acknowledged that seasonal respiratory hospitalisations in the Northern Hemisphere winter may continue to influence second-half results. Respiratory illnesses typically peak during winter months in North America and Europe, creating variability in demand for acute respiratory care equipment. However, the company’s performance through January suggests underlying demand remains robust despite these seasonal fluctuations.
The combination of clinical practice adoption and margin improvement creates a favourable earnings trajectory. Clinical practice change adoption represents a long-term revenue driver that compounds over time as hospitals standardise on respiratory care equipment, whilst efficiency gains protect profitability in a cost-conscious healthcare environment.
Understanding respiratory care equipment demand cycles
Fisher & Paykel Healthcare designs, manufactures, and markets products and systems for use in acute and chronic respiratory care, surgery, and the treatment of obstructive sleep apnoea. The company’s Hospital products range includes heated humidification systems, respiratory support devices, and consumables used in intensive care units and operating theatres.
The business experiences demand variability linked to respiratory illness patterns, particularly during Northern Hemisphere winter months when influenza, pneumonia, and other respiratory conditions drive higher hospital admissions. This seasonal pattern can create quarterly revenue fluctuations that do not necessarily reflect underlying business health.
The concept of “changing clinical practice” refers to hospitals adopting new treatment protocols that incorporate Fisher & Paykel Healthcare’s equipment as standard care. When a hospital implements a new respiratory care protocol using the company’s products, it creates recurring demand for both capital equipment and consumable supplies. This adoption process builds a sticky revenue base that is less sensitive to individual product sales and more reflective of institutional partnerships.
For investors unfamiliar with the medical device sector, this distinction matters when interpreting quarterly results. Short-term revenue movements may reflect seasonal respiratory patterns or individual hospital purchasing cycles, whilst the strategic focus on clinical practice change drives multi-year structural growth as more healthcare facilities embed the company’s technology into standard treatment pathways.
US tariff situation and Supreme Court ruling
Current status and refund potential
Fisher & Paykel Healthcare’s updated guidance arrives against the backdrop of significant developments in US trade policy. The United States Supreme Court has invalidated tariffs imposed by the US administration under the International Emergency Economic Powers Act (IEEPA), creating potential for tariff refunds that are not incorporated into the company’s current forecasts.
The company has stated there remain uncertainties regarding the implications of the Supreme Court’s ruling for companies that import into the United States. Management is working through the complexities associated with US court rulings, refund processes, and application of free trade agreements and the Nairobi Protocol to its products. A full update on tariff impacts is expected with the company’s full-year results at the end of May 2026.
Critically, the $450 million to $470 million net profit after tax guidance does not incorporate any potential refund of US tariffs paid during the 2026 financial year. This creates unquantified upside to current forecasts, depending on the amounts involved and the timing of any refund approvals. The exclusion of tariff refunds from guidance represents a conservative approach that protects against execution risk whilst preserving potential earnings surprises to the upside.
Long-term strategic view on tariffs
Beyond the immediate refund question, management has articulated a strategic perspective on tariff impacts that emphasises operational resilience. The company continues to view current and proposed tariff structures in the context of cost increases that will be mitigated over time by longstanding continuous improvement activities.
As such, management does not currently believe tariff matters have any material impact on the company’s long-term direction, strategy, or sustainable profitable growth. This confidence stems from the company’s track record of absorbing cost pressures through manufacturing efficiency, supply chain optimisation, and process improvements.
For investors, this framing positions tariffs as a temporary headwind rather than a structural concern. The company’s confidence in absorbing tariff impacts through operational efficiency signals margin resilience and suggests profitability targets remain achievable even if trade policy uncertainties persist. The potential for tariff refunds represents upside optionality not required for the investment case to hold.
What investors should watch for at May results
The full-year results announcement at the end of May 2026 will provide critical detail for investors assessing the company’s trajectory into FY27. Key items to monitor include:
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Final FY26 revenue and NPAT relative to upgraded guidance – Delivery within or above the revised ranges will validate the guidance upgrade and confirm demand strength.
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Gross margin and operating margin trends – Continuation of margin improvement will demonstrate the sustainability of efficiency gains cited in this update.
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Clarity on US tariff refund amounts and timing – Management has committed to providing a full update on tariff impacts, including quantification of potential refunds and expected timeframes.
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Hospital product segment performance breakdown – Detailed revenue splits across acute respiratory care, surgical products, and other Hospital categories will clarify which product lines are driving growth.
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FY27 outlook and any new guidance – Forward guidance for the 2027 financial year will set investor expectations for the next earnings cycle and indicate whether current momentum is sustainable.
The May results will provide the complete earnings picture for FY26 including tariff refund clarity, giving investors visibility into both backward-looking performance and forward-looking expectations. The combination of finalised FY26 results and initial FY27 guidance will establish the earnings baseline for the year ahead.
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Looking ahead
Fisher & Paykel Healthcare sells its products in over 120 countries worldwide, providing geographic diversification and multiple growth vectors across developed and emerging healthcare markets. Management’s commitment to sustainable profitable growth through clinical practice change and operational efficiency positions the company to navigate trade policy uncertainties whilst capturing structural demand for respiratory care equipment. The upgraded guidance reinforces confidence in the business trajectory entering the final quarter of FY26.
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