Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares jumped 8% today after the company delivered a strong set of half-year results, marked by double-digit revenue growth, expanding margins, and a sharp uplift in profitability.
At the time of writing, Fisher & Paykel shares were trading at $34.52 on the ASX and up 8% for the day.
The market’s response was in appreciation of the broad-based strength across both the Hospital and Homecare divisions, as well as an upgrade to full-year guidance.
What did Fisher & Paykel report?
Fisher & Paykel posted operating revenue of $1.09 billion for the six months to 30 September 2025, an increase of 14% on the same period last year, or 12% in constant currency. Net profit after tax rose sharply to $213 million, up 39%, reflecting strong demand for the company’s respiratory care products and the benefits of operational efficiencies.
The hospital division was the standout contributor. Revenue in this segment reached $692.2 million, up 17%, driven by broad-based strength across the consumables portfolio and a particularly strong lift in hardware sales, which grew 21% in constant currency. Notably, this momentum came despite a relatively mild respiratory season, underscoring the structural shift toward high-flow therapy and non-invasive ventilation across global hospitals.
Homecare also delivered steady growth, with revenue rising to $395.9 million, an increase of 10%. The company highlighted robust uptake of its newest obstructive sleep apnea (OSA) masks (including the Nova
Nasal and Nova Micro), which are now available across several major markets. These products contributed to an 8% constant-currency lift in OSA mask revenue.
Margins improved materially during the half. Gross margin expanded to 63%, up 110 basis points year on year. Even after accounting for the drag from US tariffs on New Zealand-sourced hospital products, margin gains were supported by continuous improvement initiatives and efficiency gains across the business. Operating profit rose 31%, lifting the operating margin to 26.3%.
The board increased the interim dividend to 19 cents per share, fully imputed and payable on 16 December 2025.
Outlook
In addition to the result, FPH upgraded its full-year outlook. At prevailing exchange rates as of 31 October, the company now expects revenue of $2.17 billion to $2.27 billion (previous guidance provided in August was for revenue of $2.15billion to $2.25billion) and net profit of $410 million to $460 million (previous guidance provided in August was $390m to $440m).
Management noted that last year’s Northern Hemisphere winter was unusually strong for respiratory hospitalisations. Should the upcoming season follow a similar pattern, performance is likely to land toward the higher end of guidance.
Despite the improved earnings outlook, the company emphasised that full-year margins will continue to reflect the impact of US tariffs, which are expected to reduce gross margin by around 75 basis points. Even so, Fisher & Paykel believes its operational efficiency initiatives will continue to offset part of this drag.
Foolish bottom line
Fisher & Paykel Healthcare delivered the combination of growth, margin expansion, and upgraded guidance that investors look for in a high-quality medical technology company. The strength in hospital consumables (even during a softer clinical season) suggests the company’s products are becoming increasingly embedded in global care pathways. Homecare continues to provide a solid second engine of growth, supported by an expanding pipeline of OSA mask innovations.
The result reinforces FPH’s long-term ambition to sustainably double its constant-currency revenue every five to six years. With clinical adoption rising, a refreshed product portfolio gaining traction, and operational efficiency improving, the market’s positive reaction reflects growing confidence that the company is back on a clear upward trajectory.
The post Fisher & Paykel shares surge 8% on half-year results appeared first on The Motley Fool Australia.
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Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australiaâs parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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