Fisher & Paykel Healthcare has raised its full year 2027 guidance, signalling accelerating momentum in the medical device company’s core Hospital product lines and improving operational efficiencies. The company now expects full year net profit after tax between $525 million and $565 million, up from its previous guidance of $500 million to $550 million issued in May. Revenue guidance has been narrowed and marginally increased to $2.47 billion to $2.57 billion, up from $2.45 billion to $2.57 billion.
The guidance upgrade is underpinned by strong first half performance. FPH expects first half revenue of approximately $1.24 billion, representing 14 percent growth compared to the same period last year, with net profit after tax of approximately $280 million, up 24 percent year on year. Managing Director Lewis Gradon attributed this performance to continued strong demand for the company’s latest range of hospital hardware devices and ongoing clinical practice changes driving consumable sales, which typically carry higher margins than equipment sales.
The earnings growth significantly outpaces revenue growth, indicating that FPH is successfully leveraging its cost base. The first half guidance incorporates approximately $23 million in US tariff refunds, which has provided a tailwind to earnings. More importantly, management notes that the company is realising benefits from continuous improvement activities that are translating into measurable gross margin expansion and other operating efficiencies. This operational leverage is a hallmark of successful execution in capital-light, higher-margin businesses.
For investors, the guidance raise carries multiple positive signals. First, the company is demonstrating pricing power and volume growth in its core Hospital segment during a period when global healthcare spending remains robust. Second, the improvement in gross margins suggests that FPH’s efficiency initiatives are delivering tangible returns, which should support earnings sustainability even if revenue growth moderates. Third, the company appears well positioned to absorb the potential impact of future tariff policy changes, given that current guidance assumes current global tariff rates and policies continue for the full year.
The narrowing of full year revenue guidance while raising the profit range indicates management confidence in the trajectory. This is a relatively bullish signal, as companies typically only narrow guidance ranges when visibility improves. Investors should monitor the company’s actual first half results when reported in November 2026 to confirm that the underlying demand drivers in Hospital products remain durable and that the margin expansion is sustainable. The company’s annual shareholders meeting is scheduled for 25 August 2026, which may provide additional colour on competitive dynamics and investment priorities.
This announcement is price sensitive and has been flagged as material by the ASX.
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About Fisher & Paykel Healthcare Corporation Limited (ASX: FPH)
Fisher & Paykel Healthcare is a New Zealand-based medical device company that designs, manufactures, and markets respiratory care systems and equipment. The company specializes in products for in-hospital respiratory care, acute care, and the treatment of obstructive sleep apnea, operating manufacturing facilities in New Zealand and Mexico. Its products serve patients globally across hospital and home-care settings, with significant revenue from North America and Europe.
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