This ASX 200 healthcare stock has crashed to a multi-year low: Here’s why and what’s next

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares tumbled another 3.26% at the close of the ASX on Friday afternoon, dragging the ASX 200 healthcare stock to its lowest trading price since May 2024.

At the time of writing, the shares are $26.99 each.

The latest sell-off means the shares have now tumbled 22% from a 52-week peak recorded in February this year. They’re also 21% below trading levels seen this time last year.

Here’s what happened, and what to expect out of the ASX 200 healthcare stock next.

Why are the ASX 200 healthcare shares tumbling?

Overall, the ASX 200 healthcare index has come under pressure so far in 2026, and shares are tumbling across the board.

The ASX 200 healthcare index has tumbled 32% for the year-to-date and is 45% lower than 12 months ago. Several sector giants hit multi-year lows over the past couple of weeks.

The sector is now the worst performer of the 11 market sectors, driven by a weaker US dollar, concerns about more interest rate rises, rising inflation, cost-of-living pressures and slumping sentiment.

There are also ongoing concerns about tariffs and general global economic uncertainty which are affecting margins and export earnings of major players like Fisher & Paykel Healthcare which generate substantial revenue overseas.

The company is facing specific company headwinds too.

There are some concerns that Fisher & Paykel Healthcare shares are overvalued relative to their earnings, even after the latest pullback.

It’s also possible that the shares have dipped ahead of the company’s full-year results announcement later this month.

Despite tumbling sentiment and a weakening share price, as a business Fisher & Paykel Healthcare remains relatively sound. 

The respiratory designer and manufacturer raised its FY26 revenue and profit guidance in February. 

The company expects its full-year FY26 operating revenue will be around $2.30 billion (previously $2.17–$2.27 billion) and NPAT will be between $450 million and $470 million (previously $410 million–$460 million). Guidance assumes NZ:US exchange rate of 60 cents as at 31 January 2026.

Is this an opportunity for investors to buy in the dip, or is there more downside to come?

It looks like the latest dip could be a good opportunity for investors to buy into the ASX 200 healthcare stock for cheap.

TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on Fisher & Paykel Healthcare’s shares. Another eight have a hold rating and two rate the stock as a sell or strong sell.

The average $33.81 target price implies a potential 25% upside over the next 12 months, at the time of writing. Others think the shares could storm 57% higher to $42.40 a piece. 

The post This ASX 200 healthcare stock has crashed to a multi-year low: Here’s why and what’s next appeared first on The Motley Fool Australia.

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• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• These 4 ASX 200 shares have slumped to fresh 52-week lows: Buy, sell or hold?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s 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.