ResMed Inc.
RMD · NYSE
Next quarter
Expected to report Jan 28, 2027 — estimated from last year’s reporting date.
Consensus is $3.02 EPS for Dec 2026 across 5 estimates, ranging $2.99 to $3.06.
RMD Sep 2026
- 8.99%
- -9.05%
- $2.67
- $2.91
- —
- $1.41B
Reported results
- $1.41B
- 61.53%
- $452.98M
- 32.02%
- $418.41M
- $2.92
Highlights
- EPS beat: Non-GAAP diluted EPS was $2.91, 9.0% above the $2.67 consensus; GAAP diluted EPS was $2.92, up 23% year over year.
- Core growth: Revenue increased 6% to $1.415 billion, or 7% on a core constant-currency basis, led by sleep devices and masks and accessories.
- Sleep and breathing: Segment revenue rose 8% to $1.260 billion; masks and other grew 10% globally, while devices grew 6%.
- Margins and costs: Non-GAAP gross margin expanded 50 basis points to 62.5%, but non-GAAP operating margin slipped 30 basis points to 35.8%; GAAP operating income was $453 million, up 1%.
- MatrixCare sale: The divestiture closed September 1 for $470 million in net cash proceeds at closing, with $451 million of proceeds net of cash divested and a preliminary $62 million pre-tax gain.
- Shareholder returns: ResMed returned more than $1.0 billion through repurchases and dividends; it repurchased 3.6 million shares and paid $95 million in dividends.
- Cash generation: Operating cash flow was $422 million and free cash flow $374 million, down 8% and 10%, respectively, year over year, partly reflecting higher working capital and inventory.
- Guidance unchanged: FY2027 revenue guidance remains $5.75–$5.85 billion, with core constant-currency growth of 5–7%; non-GAAP EPS guidance remains $12.00–$12.25.
Analysis
ResMed opened FY2027 with 6% reported revenue growth to $1.415 billion and non-GAAP diluted EPS of $2.91, beating the $2.67 consensus by 9.0%. Core constant-currency revenue grew 7%, driven by sleep and breathing health demand; the company reported GAAP diluted EPS of $2.92, 23% above the year-ago $2.37. The supplied history does not include FY2026 Q4, so a direct sequential-quarter comparison is unavailable; against the latest earlier quarter provided, Q3 FY2026, revenue was $1.415 billion versus $1.43 billion and EPS was $2.91 non-GAAP versus $2.74 GAAP.
Sleep and breathing demand
- Segment growth: Sleep and Breathing Health revenue rose 8% to $1.260 billion, or 7% on a core constant-currency basis.
- Products: Global masks and other revenue increased 10% to $540 million; devices grew 6% to $720 million. Management attributed the gains to higher demand and unit sales across the sleep portfolio.
- Regions: Americas Sleep and Breathing Health revenue reached $833 million, up 7% core constant currency; Rest of World rose 8% to $426 million on that basis, including fleet renewals in France.
- Life support: Global Life Support Devices revenue fell 84% to $4 million, primarily reflecting the planned discontinuation of the Astral device.
Margins and earnings
Non-GAAP gross margin expanded 50 basis points year over year to 62.5%, with management citing productivity, manufacturing and logistics efficiencies, component-cost improvements, and lower acquired-intangible amortization. GAAP gross margin was 61.5%, up 30 basis points. Non-GAAP operating margin, however, narrowed 30 basis points to 35.8%; operating expenses rose faster than revenue, including higher R&D investment and restructuring costs. GAAP operating income increased just 1% to $453 million, while non-GAAP operating income rose 5% to $506 million.
GAAP net income increased 20% to $418 million, with the $62 million MatrixCare divestiture gain contributing to reported results. Non-GAAP net income was also $418 million, up 12%, after excluding the gain and other adjustments. Non-GAAP EPS rose 14% to $2.91, reflecting earnings growth and a lower diluted share count; GAAP EPS was $2.92.
MatrixCare divestiture
- Transaction closed: ResMed completed the sale on September 1, receiving $470 million in net cash at closing; proceeds net of cash divested were $451 million.
- Reported impact: The sale generated a preliminary $62 million pre-tax gain, included in continuing operations. ResMed also recorded $10 million of acquisition and divestment-related expenses.
- Portfolio shift: MatrixCare’s results were included in Residential Care Software through closing. The sale was part of the company’s plan to focus more on sleep, breathing, and connected home-based healthcare.
Residential care software
Residential Care Software revenue declined 7% to $155 million, or 6% excluding currency, as the MatrixCare sale more than offset growth in the retained businesses. ResMed said Brightree and MEDIFOX DAN together grew 8% on a constant-currency basis. The segment’s reported quarter therefore reflects both the divested business’s results up to September 1 and a smaller post-sale portfolio.
Cash and shareholder returns
- Capital returned: The company reported more than $1.0 billion returned through repurchases and dividends. It repurchased 3.6 million shares during the quarter and paid $95 million in dividends; the quarterly dividend was $0.66 per share.
- Repurchase funding: An accelerated repurchase agreement covered $450 million, with an initial delivery of 1.6 million shares. The filing reports $936 million of treasury-stock purchases in financing cash flows.
- Cash flow: Operating cash flow was $422 million versus $457 million a year earlier; free cash flow was $374 million versus $414 million. Management cited higher working-capital needs, including inventory buildup partly related to supply-chain expansion.
- Liquidity: Cash and equivalents ended the quarter at $1.01 billion, down from $1.47 billion at June 30, after capital returns and debt repayment; the company also had $1.5 billion available under its revolving credit facility.
FY2027 outlook
- Revenue: Guidance was maintained at $5.75–$5.85 billion reported, with core constant-currency growth of 5–7%.
- EPS: Non-GAAP diluted EPS guidance remains $12.00–$12.25.
- Cost backdrop: Management said inflationary pressure, particularly in electronic components, is expected to persist through the rest of FY2027, and supply-chain expansion may cause gross-margin fluctuations.
