Fisher & Paykel Healthcare
New Zealand maker of hospital humidifiers, CPAP masks, and nasal high-flow breathing devices.
On the record
Checkpoint: US Section 301/232 tariff compliance deadlines hit Mexico-made devices, pressuring margins
The call
A profitable respiratory device maker growing steadily on hospital and homecare demand, with tariffs on its Mexico supply chain as the nearest real risk, not AI.
Fisher & Paykel Healthcare makes breathing masks, tubing, and humidifiers for hospitals and sleep clinics worldwide. It is hard to copy because the company has decades of design patents, FDA approval for each specific product, and hospitals are locked into buying their replacement masks and tubes once they pick the equipment. ResMed and Philips are bigger rivals, but Fisher & Paykel keeps its slice of the market by being good at what it does and having long relationships with hospitals. The one thing that could hurt them soon is tariffs: the US government is considering raising import taxes 10 to 12 percent in mid-2026, which would cut into profits if Fisher & Paykel has to pay more to ship from Mexico.
Why
01
AI pressure: None apparent. AI can't manufacture humidifiers, masks, or tubing, or replace FDA-cleared hardware and consumables lock-in. Could AI do the core job? Unlikely.
02
Bigger players: ResMed and Philips Respironics. ResMed dominates CPAP/sleep platforms; Philips is rebuilding after its 2021 recall, but neither has taken hospital share from F&P's Optiflow line yet. Could a giant copy it? No, they are blocked.
03
What protects it. FDA per-SKU clearances, decades of humidification IP, and recurring mask/tubing/circuit consumables tie hospitals and patients into repeat purchases.
What would change this call
US Section 301/232 tariff compliance deadlines hit in July and September 2026. Would show whether Mexico-manufacturing tariff exposure actually compresses margins as feared.
ResMed or Philips announces a hospital humidification or high-flow product winning share from Optiflow. Would show a real incumbent threat materializing in F&P's crown-jewel segment.
FY2027 half-year results released around November 2026 show guidance revision. Would show whether tariffs or currency swings are hitting profit as guided.
ResMed or Philips announces a hospital humidification or high-flow product winning share from Optiflow. Would show a real incumbent threat materializing in F&P's crown-jewel segment.
FY2027 half-year results released around November 2026 show guidance revision. Would show whether tariffs or currency swings are hitting profit as guided.
Key numbers
- FY2026 revenue NZ$2.31B, up 14%
- Net profit NZ$468.5M, up 24%
- R&D spend NZ$235.5M, ~10% of revenue
Named risks
- US Section 301/232 tariffs on Mexico-manufactured devices, compliance deadlines July/Sept 2026.
- Patent erosion after December 2024 Federal Circuit loss on a breathing-circuit patent claim.
- ResMed's larger scale (~US$4.7B revenue, 8,000+ staff) could outspend FPH in CPAP platform investment.
- NZD currency volatility affecting reported constant-currency versus reported growth figures.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| ResMed | contesting | ResMed ~US$4.7B FY2024 revenue and 8,000+ staff versus FPH NZ$2.31B FY2026 revenue |
| Philips Respironics | gaining on | Philips recovering share since its 2021 recall, per 2021-08-18 market report naming FPH, ResMed, Philips, Medtronic as top players |
| Medtronic | contesting | Named alongside FPH, ResMed, Philips as a leading respiratory devices market player in 2021-08-18 industry report |
Questions people ask
- Is Fisher & Paykel Healthcare profitable in 2026?
- Yes. For the year ended March 31, 2026, Fisher & Paykel Healthcare reported net profit after tax of NZ$468.5 million, up 24% reported (28% constant currency) on operating revenue of NZ$2.31 billion, up 14%, per its May 26, 2026 results announcement.
- Could AI replace Fisher & Paykel Healthcare?
- No. Its core business is manufacturing physical devices and consumables (masks, humidifiers, breathing circuits) under FDA per-SKU clearances, such as the July 14, 2025 510(k) for the Optiflow Air/Oxygen Flow Source. AI software cannot replicate regulated hardware manufacturing or consumables lock-in.
- Who is Fisher & Paykel Healthcare's biggest competitor?
- ResMed is the closest direct rival, competing across CPAP devices and masks; ResMed reported roughly US$4.7 billion in FY2024 revenue and employs over 8,000 people (company-reported figures), giving it larger scale than Fisher & Paykel Healthcare's NZ$2.31 billion FY2026 revenue.
- Is Fisher & Paykel Healthcare a safe company to join right now?
- Headcount looks stable: the company reported 7,434 total employees (7,357 full-time, 77 part-time) as of March 31, 2026, a slight -0.08% year-on-year change, alongside FY2026 revenue growth of 14% and no disclosed layoffs.
- Who owns Fisher & Paykel Healthcare?
- It is an independent public company with no parent, dual-listed on the New Zealand (NZX: FPH) and Australian (ASX: FPH) exchanges, and also trading OTC in the US as FSPKF. Market capitalization was approximately NZ$23.15 billion as of July 25, 2026.
- What are the biggest risks facing Fisher & Paykel Healthcare in 2026?
- US tariff exposure on its Mexico-based manufacturing is the top near-term risk: new Section 301 tariffs (10-12.5%) took effect around July 2026 and Section 232 device-adjacent tariffs proclaimed April 7, 2026 carry compliance deadlines in July and September 2026. FY2026 guidance explicitly excluded any tariff refunds.
Timeline
- 2026-07-24New Section 301 tariffs of 10-12.5 percent took effect, already facing legal challenge
- 2026-05-26FY2026 results: NZ$2.31B revenue (+14%), NZ$468.5M NPAT (+24%); FY2027 guidance issued
- 2026-04-07Section 232 tariff action on device-adjacent products proclaimed, deadlines July/Sept 2026
- 2026-02-23FY26 guidance update explicitly excluded any refund of US tariffs paid to date
- 2025-07-14FDA 510(k) clearance received for F&P Optiflow Air/Oxygen Flow Source
- 2025-05-28FY2025 record revenue reported: NZ$2.02B (+16%), net income $377.2M (+184%)
- 2024-12FPH lost Federal Circuit appeal on unpatentability of a breathing-circuit patent claim
- 2023-09-18Third Mexico manufacturing facility (Sanchez Building, Tijuana) opened
- 2019-02-20FPH and ResMed announced global settlement of patent infringement litigation
Revision history
25 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Fisher & Paykel Healthcare Reports Strong Revenue and Profit Growth FY2026 (2026-05-26)
- GuruFocus via Yahoo Finance (2026-05-26)
- Fisher & Paykel Healthcare (2025-05-28)
- GuruFocus (2026-07-25)
- FDA 510(k) database (2025-07-14)
- Fisher & Paykel Healthcare (2023-09-18)
- stockanalysis.com
- Wikipedia (ResMed)
- PR Newswire / Research and Markets (2021-08-18)
- ResMed Investor Relations (2019-02-20)
- PatSnap (2026-06-15)
- Fisher & Paykel Healthcare (2026-02-23)