Fisher & Paykel Healthcare Corporation Limited

For FY26, operating revenue was $2.3 billion, up 14% year over year, or 12% in constant currency. NPAT was $468.5 million, up 24% year over year, or 28% in constant currency. Gross margin was 63.7%, up 122 basis points in constant currency, and operating margin was 27.6%, up 277 basis points in constant currency. Hospital operating revenue was $1.5 billion, up 18% reported and 15% constant currency; Homecare operating revenue was $802.7 million, up 8% reported and 7% constant currency. For FY27, management guided to operating revenue of $2.45 billion to $2.57 billion and NPAT of about $500 million to $550 million. They said they assume a 10% tariff rate on certain respiratory products made in New Zealand for the full year, plus ongoing Middle East-related surcharges, resulting in a net 50 basis point gross margin headwind, which they expect to more than offset through ongoing efficiency gains.

Lewis Gradon emphasized broad-based momentum across the business, especially in Hospital hardware and consumables, and said changing clinical practice continued to drive growth even with lower respiratory illness admissions. He highlighted 24 million patients treated, 12 clinical guidelines supporting Optiflow, and said the company is built on innovation, quality and continuous improvement. His tone was confident but measured, with repeated emphasis on “momentum” and on not overreacting to tariffs, freight or regional disruption.

Lyndal York said gross margin reached 63.7%, up 122 basis points in constant currency, helped by manufacturing efficiency and other continuous improvement efforts, but hurt by about 90 basis points from U.S. tariffs on New Zealand-sourced products. Total operating expenses rose 8% in constant currency, R&D was $235.5 million and SG&A was $298 million, while operating cash flow was $663 million, up 21%. She also noted capex of $195 million in FY26 and expected FY27 capex of about $230 million, net cash of $401 million, $53 million of noncurrent borrowings, and a dividend of $0.52 per share for the year, up 22%.

Analysts pressed on the FY27 revenue range, with management saying the midpoint assumes similar Hospital consumables growth, similar OSA mask growth, and roughly flat hardware, while the low end assumes softer consumables and a much weaker hardware contribution. Questions also focused on gross margin assumptions: management clarified that the 70 basis points from tariffs is a standalone FY27 assumption, offset year-over-year by a 20 basis point improvement versus FY26 tariff impact, but netted down by 70 basis points of new Middle East-related cost pressure. Management said they typically do not pass tariff-driven cost increases through to customers, and also said the recent hospital hardware strength is largely driven by U.S. pent-up demand and mostly replacement rather than expansion.