The CSL Ltd (ASX: CSL) share price is under the spotlight after announcing more financial pain in the FY26 result.
CSL is one of Australia’s largest healthcare businesses, with a number of segments including plasma, immunoglobulin, vaccines and plenty more.
$5 billion of impairments
The healthcare company announced that it expects to include approximately $5 billion of pre-tax impairments across FY26 and FY27, in addition to those announced in the HY26 result.
CSL said the additional impairments include CSL Vifor intangible assets, including the product portfolio. The impairments also include under-utilised property, plant and equipment.
The business said that these impairments will be subject to further analysis, business developments, external audit and board approval.
Other FY26 updates
The company said it expects FY26 revenue to be around $15.2 billion, while underlying net profit (NPATA) – excluding restructuring costs and impairments – will be around $3.1 billion. Both of these figures are on a consistent foreign exchange rate basis.
CSL said that there were a few different reasons for this updated outlook.
Firstly, CSL expects there will be a $300 million revenue impact to US immunoglobulin – this reflects its normalisation of channel inventory, despite demand growing at mid to high single digits.
Second, albumin in China is expected to see a revenue impact of approximately $200 million. Even though CSL’s share has expanded and volumes have stabilised, the market value has declined.
CSL also highlighted that the impact of the Middle East conflict, revised HEMGENIX growth and competition in iron has collectively had an expected revenue impact of $150 million.
The ASX healthcare share said that it expects revenue growth in the second half of FY26 for CSL Behring, with underlying demand, as well as benefits from operational and transformation initiatives.
Finally, vaccine business CSL Seqirus’ performance is expected to be “moderately stronger” than expected.
Leadership update
CSL noted that the global search for the next CEO is “progressing as planned”.
It also said that Mr Naylor will remain on the CSL board of directors as a non-executive director after the appointment and transition of the new CEO.
Chief commercial offer Andy Schmeltz has decided to retire from CSL for personal reasons. Diego Sacristan will become the chief commercial officer of CSL Behring.
Final thoughts on the CSL share price
I haven’t ever invested in CSL because I’ve always felt – to borrow from Warren Buffett – biotechnology is outside of my circle of competence. In other words, I’m not an expert in biotech products, so I’ve been happy to watch from the sidelines.
At the pre-open price, the CSL share price was down more than 60% from its former all-time highs a couple of years ago.
There will be a point where the market is undervaluing the business. But, it’s hard to know where that level is as the company is regularly disappointing the market with negative updates.
I believe there are other, more attractive ASX growth shares that have an easier path to profit growth in the longer-term.
