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Highlights

  • Fisher & Paykel Healthcare received bullish ratings from both Jefferies and Macquarie despite softer FY2026 guidance.

  • Shares rose 5.46% to NZD 36.50 following FY2025 earnings.

  • Jefferies maintained a “Buy” rating with a target price of NZD 40.90, implying a 12.05% upside from current levels.

  • Macquarie reaffirmed its “Outperform” rating, raising its target to NZD 39.30 (AUD 36.51), suggesting a 7.67% upside, while highlighting confidence in long-term margin targets.

  • FY2025 operating revenue hit a record NZD 2.02 billion, up 16% year-on-year (14% in constant currency).

Fisher & Paykel Healthcare Corporation Ltd (NZX:FPH) is attracting positive sentiment from analysts, with both Jefferies and Macquarie maintaining bullish stances despite mixed signals from the company’s recent FY2025 guidance.

The company’s shares were last trading at NZD 36.50, up 5.46% on the day, following latest earnings performance that exceeded expectations in both revenue and margins.

Jefferies Rates FPH a ‘Buy’

Analyst at Jefferies issued a “Buy” rating on 28 May 2025, assigning a price target of NZD 40.90. This represents an upside potential of 12.05% from the current price. T

Macquarie Research Retains ‘Outperform’

Macquarie Research also reiterated its “Outperform” recommendation, setting a revised price target of NZD 39.30 (approximately AUD 36.51), suggesting a 7.67% upside. Analysts noted that while FY2026 guidance underwhelmed, the company’s reaffirmation of its 65% gross margin target by FY2028 was ahead of expectations. 

Financial Performance in FY2025

Fisher & Paykel Healthcare reported record operating revenue of NZD 2.02 billion for the 2025 financial year, marking a 16% year-on-year increase (14% in constant currency). This robust growth was fueled by strong demand across hospital consumables and double-digit gains in obstructive sleep apnea (OSA) masks.

Net profit after tax (NPAT) surged to NZD 377.2 million, up 43% compared to FY2024, or 30% in constant currency, based on underlying profit figures that exclude one-off items from the previous year.

Margins and Strategic Focus

The company continues its focus on restoring long-term profitability, reaffirming its commitment to achieving a 65% gross margin. For FY2025, the gross margin stood at 62.9%, reflecting an improvement of 181 basis points (129 basis points in constant currency) from the prior year.

R&D and Product Innovation

Fisher & Paykel invested NZD 226.9 million in research and development during the year. Key product advancements included:

  • Expanded U.S. rollout of the F&P Airvo™ 3 device and F&P 950™ System.

  • Increased market adoption of anaesthesia-related devices such as F&P Optiflow Switch™ and F&P Optiflow Trace™.

  • Launch of two new OSA treatment masks:

    • F&P Nova™ Micro (April 2024)

    • F&P Nova Nasal (March 2025)

Dividend Announcement

The Board declared a final dividend of 24.0 cents per share, bringing the total FY2025 dividend to 42.5 cents, a 2% increase over the previous year. The dividend is fully imputed and will be paid on 4 July 2025, with a record date of 24 June 2025.

FY2026 Outlook

At current exchange rates as of 30 April, Fisher & Paykel Healthcare projects:

  • Operating revenue: between NZD 2.15 billion and NZD 2.25 billion

  • Net profit after tax: in the range of NZD 390 million to NZD 440 million