Fisher & Paykel Healthcare: FY26 result: Another breath of fresh air

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Fisher & Paykel Healthcare: FY26 result: Another breath of fresh air

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Fisher & Paykel Healthcare

FY26 result: Another breath of fresh air

Reiterate Rating: BUY | PO: 47.00 NZD | Price: 33.66 NZD

Margin expansion momentum to continue 26 May 2026

We appreciate the 2H step up in GM expansion (1H +60bpts; FY +122bpts) supported by Equity

scale and manufacturing efficiencies. FPH still targeting 100-150bpts GM improvement

annually and expects to exceed its 65% LT GM ahead of 2-3 year target (if supported by

Key ChangesFX tailwinds). FPH flagged a 50bpts FY27 GM headwind from higher freight and raw

materials costs, offset by lower tariff headwinds. We lift our FY27 GM forecast to 64.4% (NZ$) Previous Current

(prev 64.3%; Cons: 63.8%). Operating leverage to also drive NPAT margin expansion. Price Obj. 41.00 47.00

2027E Rev (m) 2,604.3 2,568.0

2028E Rev (m) 2,953.0 2,925.5Clinical change reduces flu season volatility

We like the consistent 1H/2H hospital new apps consumables revenue growth (16% cc). 2029E Rev (m) NA 3,341.4

Efforts to support clinical change are delivering more consistent revenue growth which 2027E EPS 0.91 0.93

is less subject/dependent on respiratory season severity. FPH flagged seasonal variation 2028E EPS 1.12 1.13

is now less than 5% of Hosp revenue. We note that FPH expects Hosp Hardware growth 2029E EPS NA 1.37

to slow in FY27 (BofA 0%; FY26A +27% cc) as US cycles through device launches.

Lyanne Harrison >>

Homecare needs new mask launch ResearchMerrill LynchAnalyst(Australia)

OSA mask revenue slowed marginally in 2H following consecutive years of double digit +61 2 9226 5028

lyanne.harrison@bofa.com

growth. Competition in this market has intensified. In our view, FPH needs a consistent

Elizabeth Davies >>