The Fisher & Paykel Healthcare Ltd (ASX: FPH) share price rose more than 4% after upgrading its FY26 guidance.
Fisher & Paykel Healthcare describes itself as a leading designer, manufacturer and marketer of products and systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnea.
FY26 upgrade
The healthcare business announced it was upgrading both its revenue and earnings guidance for FY26 (which finishes on 31 March 2026).
It was previously expecting operating revenue to be between $2.17 billion to $2.27 billion. It’s now expecting operating revenue to be approximately $2.3 billion – above the top end of its previous range.
FY26 net profit was previously expected to be between $410 million to $460 million and now it’s expected to be between $450 million to $470 million. In other words, it could be above the top end of its previous guidance.
Fisher & Paykel Healthcare attributed this stronger performance to good growth across the full range of its hospital products so far during the FY26 second half.
It also noted that its performance to date suggests “pleasing progress” in its efforts to change clinical practice. It also said that continuous improvement activities and other efficiency gains are also contributing to improvements in its gross profit margin and operating profit margin.
US tariff update
The business also noted that that US Supreme Court announced last week that it has invalidated tariffs imposed by the US Administration under the International Emergency Economic Powers Act (IEEPA).
However, there are still “a number of uncertainties regarding the implications of the Supreme Court’s ruling for companies that import into the United States”.
The ASX share is working through the “complexities” associated with the US court rulings, refund processes and application of free trade agreements & Nairobi Protocol to its products, and will provide an update on tariff impacts with its full-year result at the end of May.
Fisher & Paykel said that the company “continues to view current and proposed tariff structures in the context of cost increases that will be mitigated over time by the company’s longstanding continuous improvement activities.”
But, it doesn’t think tariffs will have any material impact on the company’s long-term direction, strategy or sustainable profitable growth.
Final thoughts on the Fisher & Paykel Healthcare share price
The business is clearly doing well and has regained momentum following the COVID-19 volatility.
I like that the business is growing and I’d be happy if I were a shareholder. However, I’m personally not sure how much the business will be able to grow earnings in the next five to ten years, so I’m happy to leave investing in this quality business to others. It seems to be one of the more impressive ASX growth shares, though.
