Why fund managers see years of runway left in Fisher & Paykel Healthcare

Fisher & Paykel Healthcare's nasal high-flow products keep gaining share in hospitals, with fund managers pointing to slow-but-durable clinical adoption as the growth engine.

10 Jun 2026 · 6 min read

Respiratory and acute care device maker Fisher & Paykel Healthcare continues to be held up by fund managers as one of the more durable growth compounders on the ASX. Hyperion Asset Management's May 2026 Monthly Report detailed a strong FY26 result, with the Hospital segment, 65% of group revenue, growing 15% year on year in constant currency, and anaesthesia consumables products continuing to outperform, growing 40% year on year.

Changing clinical practice, one hospital at a time

Selector Funds Management's detailed August 2025 Quarterly Report captured the essence of the company's moat directly from management at an investor day held at Royal Melbourne Hospital: long-serving executives described the business as not being at any inflection point after decades in its chosen therapies, with opportunities described as longer than an arm's length, built on patience and a model of forming long-term relationships with hospital customers rather than transactional sales. Firetrail Investments' February 2026 Article distilled the commercial case, noting the company's Optiflow nasal cannula product avoids the discomfort of a full oxygen mask, has been proven non-inferior in post-COVID research, and already holds around 90% market share in the hospital consumables space that generates 90% of hospital segment revenue.

We are delivering innovative solutions that are driving better clinical outcomes for our patients and our customers where we are saving money.

— Selector Funds Management, Quarterly Report, August 2025 (quoting Fisher & Paykel Healthcare management)

Not every manager held on through 2025. Paradice Investment Management's December 2025 Monthly Report detailed exiting the position over concerns of potential tariff hikes from a Section 232 investigation by the Trump administration and possible renegotiation of the USMCA agreement, even while acknowledging operational performance remained strong. Mint Asset Management took the opposite view in its March 2026 Quarterly Report, adding to the position on share price weakness through the quarter despite what it called robust operating dynamics.

What managers are watching next

Pendal Group's June 2026 Newsletter noted the FY26 result was well received given concerns heading into it, with consumables growth of 16% ahead of long-term targets, guidance for another year of mid-teen bottom-line growth in FY27, and the stock defying the worst of the broader healthcare sector de-rating to trade on a price-to-earnings multiple of around 40 times. With anaesthesia adoption in the US tracking roughly five years behind the more mature Australian market, managers including Hyperion Asset Management continue to point to that geography as the next leg of growth.