Resmed Stock Earnings Reports

ResMed reported a strong start to FY26 with group revenue of $1.34 billion (9% reported, 8% constant currency). Key drivers were device growth (7% CC globally; 8% in U.S./Canada/LatAm) and masks & accessories (10% CC globally; 12% in U.S./Canada/LatAm). Gross margin expanded meaningfully to 62% (+280 bps YoY) driven by component cost improvements, manufacturing and logistics efficiencies. Operating profit rose ~19% and non‑GAAP diluted EPS grew ~16%; operating cash flow was strong at $457 million. Management highlighted strategic priorities: (1) continued operating leverage (supply‑chain optimization, freight and automation), (2) product and digital innovation (new fabric full‑face AirTouch F30i masks, expansion of AI features such as Dawn and Comfort Match in myAir), and (3) portfolio management in the Residential Care Software (RCS) segment — shifting investment toward higher‑growth, higher‑margin SaaS platforms while reducing exposure to lower‑margin services. Corporate actions and capital allocation: $0.60 quarterly dividend declared; ~$150 million of share repurchases executed in Q1 and management intends to target ~ $150 million per quarter for the rest of FY26. Balance sheet remains healthy (ending cash $1.4B, $669M gross debt, ~$715M net cash) with $1.5B available on the revolver. Management announced a U.S. distribution facility in Indianapolis (operational by 2027) and further expansion of U.S. manufacturing capacity. They recorded a $16M restructuring charge tied to workforce planning. Guidance commentary: gross margin expected in a 61–63% range for FY26, SG&A 19–20% of revenue, R&D 6–7% of revenue, and an effective tax rate of ~21–23% (impacted by global minimum tax, partially offset by Singapore credits). Management remains confident in long‑term demand expansion (citing rising OSA prevalence) and in ResMed’s ability to combine operating excellence with ongoing R&D and digital investments to drive sustainable growth.