Fisher & Paykel Healthcare (NZSE:FPH) Net Margin Doubles to 20.2%, Supports Profitability Narrative

Fisher & Paykel Healthcare (NZSE:FPH) just posted its H1 2026 results with revenue of NZ$1.1 billion and net income of NZ$213 million, as well as basic EPS of NZ$0.36. Over the last year, the company has seen total revenue rise from NZ$951.2 million in H1 2025 to the latest NZ$1.1 billion. Net income has climbed from NZ$153.2 million to NZ$213 million. Margins have notably expanded this period, signalling a clear improvement in profitability for investors to consider.

See our full analysis for Fisher & Paykel Healthcare.

Next, we’re putting these earnings up against the broader narratives in the market. Let’s see whether the numbers fit the established stories or shake up expectations.

See what the community is saying about Fisher & Paykel Healthcare

Net Profit Margin Jumps to 20.2%

• Net profit margin nearly doubled to 20.2% over the last twelve months, compared to 9.4% in the prior year. This marks a substantial upswing in profitability that corresponds with the recent surge in earnings growth.
• Analysts' consensus view indicates that this sharp improvement is being linked to ongoing investments in operational efficiency and new product launches, which are helping the company sustain pricing power and drive replacement cycles in both hospital and homecare settings.
  • Consensus narrative notes these margin improvements came alongside global demographic trends and rising healthcare investment, boosting revenue and diversifying recurring streams.
  • There is also an expectation that gross margins may improve further as recent manufacturing expansions and efficiency initiatives take effect in coming periods.

Consensus expectations for long-term growth just got a real-world test. See how the results stack up in the full narrative. 📊 Read the full Fisher & Paykel Healthcare Consensus Narrative.

Valuation Premium: PE Reaches 50.7x

• Fisher & Paykel Healthcare now trades at a price-to-earnings (PE) ratio of 50.7x, which is considerably higher than the global medical equipment industry average of 27.9x and its peer group’s 33.4x.
• Critics highlight that while the company’s profitability surge supports premium multiples, the current share price (NZ$37.75) sits well above its DCF fair value of NZ$22.20. This raises questions around future return potential as earnings growth is now forecast to slow from 144.8% last year to 12.78% per year.
  • Consensus narrative acknowledges the evidence of strong operational momentum but points out that for the price to be justified, continued robust product adoption and efficiency gains will be important as growth rates return to industry norms.
  • There is also a notable divergence between short-term performance and long-term analyst outlook: the analyst target price for the company is NZ$39.35, only about 4.2% above current levels.

Revenue Growth to Outpace Market

• Company revenue is projected to grow at 9.9% annually, surpassing the average 4% rate expected in the wider New Zealand market. Consensus analyst forecasts look for Fisher & Paykel Healthcare’s top line to reach NZ$2.8 billion by 2028.
• Consensus narrative credits global demographic shifts, such as the rising incidence of chronic respiratory conditions and increased healthcare investment, along with ongoing product innovations, as drivers that could keep this revenue trajectory above local industry trends.
  • Key launches such as the Nova Nasal OSA mask and Airvo 3 are cited as evidence of a solid product pipeline supporting recurring hospital and homecare sales.
  • The narrative also highlights that future growth assumptions depend on the company maintaining its lead in clinical adoption and continuing operational execution on recent capacity expansions.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Fisher & Paykel Healthcare on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Looking at these results from a new angle? It takes just a few minutes to share your perspective and develop your own take on the story. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Fisher & Paykel Healthcare.

See What Else Is Out There

Fisher & Paykel Healthcare’s premium valuation is much higher than industry averages. Earnings growth is expected to slow, which may no longer justify such a high share price.

To sidestep stretched valuations and uncover opportunities trading at a better price, check out these 926 undervalued stocks based on cash flows where you’ll find companies that look more attractively priced today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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