Why CSL (ASX:CSL) Is Down 17.0% After Board Changes and Lowered Revenue Growth Guidance

CSL Limited announced board changes, with Dr. Megan Clark and Ms. Marie McDonald retiring and Mr. Costa Saroukis and Mr. Gordon Naylor joining as new Directors. This transition coincides with a lowered revenue growth guidance for FY26, now projected at 2% to 3%, down from 4% to 5%. The changes introduce uncertainty around execution risks, particularly with ongoing restructuring and the Seqirus demerger. Despite these challenges, CSL anticipates $18.1 billion in revenue and $4.2 billion in earnings by 2028, suggesting a potential fair value of A$280.61, indicating a 60% upside from current prices.

At its October 2025 Annual General Meeting, CSL Limited announced the retirement of Dr. Megan Clark and Ms. Marie McDonald from the Board, while appointing Mr. Costa Saroukis and Mr. Gordon Naylor as new Directors effective December 1, 2025.
The leadership transition coincided with lowered revenue growth guidance for financial year 2026, signaling a period of recalibration in CSL's strategy as it aligns board expertise with shifts in the business outlook.
We'll explore how CSL's revised revenue outlook may reshape the company’s investment narrative amid boardroom changes and strategic planning.

Find companies with promising cash flow potential yet trading below their fair value.

CSL Investment Narrative Recap

To be a CSL shareholder, one typically needs to believe in the company’s ability to drive sustainable earnings growth from its plasma, vaccine, and biotech platforms amid global healthcare demand. The recent board transition and reduction in FY26 revenue guidance do not materially change the near-term focus on stable product launches and realization of cost savings, though they do add some uncertainty around execution risk, especially for upcoming restructuring projects.

The most pertinent announcement alongside the board changes is CSL’s revised FY26 revenue growth guidance to 2% to 3%, down from 4% to 5%. This adjustment is highly relevant as it directly impacts near-term expectations and reflects pressures on top-line growth, which could influence how quickly investors expect benefits from recent operational and boardroom changes to flow through.

However, with restructuring and the upcoming Seqirus demerger still in progress, investors should be aware of the potential for temporary disruption and transition-related risks...

Read the full narrative on CSL (it's free!)

CSL's outlook anticipates $18.1 billion in revenue and $4.2 billion in earnings by 2028. This is based on a 5.3% annual revenue growth rate and a $1.2 billion increase in earnings from the current $3.0 billion.

Uncover how CSL's forecasts yield a A$280.61 fair value, a 60% upside to its current price.

Exploring Other Perspectives

ASX:CSL Community Fair Values as at Nov 2025

Seventeen members of the Simply Wall St Community see CSL’s fair value ranging from A$240 to A$315.47 per share. Against this spread, the company’s lowered revenue growth guidance highlights why you may want to compare different outlooks on execution and risk as part of your research.

Explore 17 other fair value estimates on CSL - why the stock might be worth as much as 80% more than the current price!

Build Your Own CSL Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your CSL research is our analysis highlighting 6 key rewards that could impact your investment decision.
Our free CSL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CSL's overall financial health at a glance.

Interested In Other Possibilities?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.

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.