Resmed Stock Earnings Reports

ResMed reported a strong start to FY2026 with $1.34B in Q1 revenue, up 9% reported (8% constant currency). Key drivers were device growth globally (7% devices overall; 8% in U.S., Canada & Latin America) and robust masks & resupply performance (10% masks & other globally; 12% in U.S./Canada/Latin America). Residential Care Software (RCS) grew mid-single digits but management plans portfolio optimization to shift investment toward higher-growth, higher-margin SaaS platforms (MEDIFOX, Brightree, MatrixCare) and reduce exposure to lower-margin services. Gross margin expanded materially (+280 bps YoY to 62%) due to supply-chain efficiencies and component cost improvements. Operating profit rose ~19% and non-GAAP EPS increased ~16%; operating cash flow was strong at $457M. Management emphasized continued R&D investment (new fabric full-face masks F30i launched; AI features Dawn and Comfort Match), direct-to-consumer expansion in markets like China/India/Korea/Australia, and tuck-in M&A to improve the patient funnel (e.g., VirtuOx, NightOwl, Somnoware). Capital allocation: Board declared a $0.60 quarterly dividend and the company repurchased ~$150M of shares this quarter, with plans to target ~$150M of buybacks per quarter for the rest of FY2026. Management also announced expansion of U.S. manufacturing/distribution (Calabasas expansion and a new Indianapolis distribution center operational in 2027) and reiterated commitment to operating leverage, gross margin improvement, and long-term growth toward the 2030 strategy. Risks noted include regulatory/tariff environment and potential CMS competitive bidding changes, which management is actively monitoring and engaging on.