RESMED INC (RMD): Results of Operations and Financial Condition
RESMED INC (RMD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 For investors For media +1 858-221-3304 +1 619-510-1281 investorrelations@resmed.com news@resmed.com Resmed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2026 • Q4 revenue increased by 9% to a record $1.5 billion; up 8% on a constant currency basis • Q
How this was made
The 30-second read
Why it matters
Traders can update valuation and positioning based on the disclosed earnings, margin trajectory, free cash flow, and the stated FY2027 capital return plan, alongside a pending MatrixCare divestiture and completed Noctrix acquisition.
Market read
A primary earnings and cash-flow disclosure with explicit FY2027 capital return guidance and a pending divestiture provides actionable inputs for near-term trading and medium-term expectations.
What to watch
The filing notes a $42M Astral field safety notification expense and a pending sale of MatrixCare; both can affect comparability and future segment earnings.
Q4 revenue increased by 9% to a record $1.5 billion; Q4 GAAP diluted earnings per share up 2% to $2.64; non-GAAP diluted earnings per share up 16% to $2.95
Fourth-quarter revenue grew 9%, non-GAAP diluted earnings per share grew 16%, and the company reported strong sleep and breathing health momentum. GAAP gross margin, operating income, operating cash flow, and free cash flow declined year over year, principally reflecting the $42 million Astral field safety notification expenses and higher operating expenses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1,464 million | – | 9%; 8% on a constant currency basis |
| Gross marginGAAP | 58.8% | – | (200) bps |
| Gross marginnon-GAAP | 62.3% | – | 90 bps |
| Research and development expensesGAAP | $106 million | – | 22%; 19% on a constant currency basis |
| Selling, general, and administrative expensesGAAP | $296 million | – | 11%; 8% on a constant currency basis |
| Selling, general, and administrative expensesnon-GAAP | $291 million | – | 10%; 7% on a constant currency basis |
| Income from operationsGAAP | $449 million | – | (1)% |
| Operating marginGAAP | 30.7% | – | (300) bps |
| Income from operationsnon-GAAP | $515 million | – | 8% |
| Operating marginnon-GAAP | 35.2% | – | (10) bps |
| Net incomeGAAP | $383 million | – | 1% |
| Net incomenon-GAAP | $428 million | – | 14% |
| Diluted earnings per shareGAAP | $2.64 | – | 2% |
| Diluted earnings per sharenon-GAAP | $2.95 | – | 16% |
| Operating cash flowGAAP | $455 million | – | (16)% |
| Free cash flowother | $404 million | – | (21)% |
| RevenueGAAP | $5,653 million | – | 10%; 8% on a constant currency basis |
| Gross marginGAAP | 61.1% | – | 170 bps |
| Gross marginnon-GAAP | 62.4% | – | 240 bps |
| Research and development expensesGAAP | $378 million | – | 14%; 12% on a constant currency basis |
| Selling, general, and administrative expensesGAAP | $1,120 million | – | 13%; 10% on a constant currency basis |
| Selling, general, and administrative expensesnon-GAAP | $1,108 million | – | 12%; 9% on a constant currency basis |
| Income from operationsGAAP | $1,887 million | – | 12% |
| Operating marginGAAP | 33.4% | – | 70 bps |
| Income from operationsnon-GAAP | $2,039 million | – | 16% |
| Operating marginnon-GAAP | 36.1% | – | 180 bps |
| Net incomeGAAP | $1,523 million | – | 9% |
| Net incomenon-GAAP | $1,632 million | – | 16% |
| Diluted earnings per shareGAAP | $10.43 | – | 10% |
| Diluted earnings per sharenon-GAAP | $11.17 | – | 17% |
| Operating cash flowGAAP | $1,806 million | – | 3% |
| Free cash flowother | $1,650 million | – | (1 )% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas Sleep and Breathing HealthGlobal momentum | not reported | – | 8% |
| Rest of World Sleep and Breathing HealthGlobal momentum | not reported | – | 10% in constant currency |
| Residential Care SoftwareGlobal momentum | not reported | – | 2% in constant currency |
FY 2027 outlook
- NoteMore than $1.85 billion in capital to be returned to shareholders through share repurchases and dividends
Capital returns
- $287 million returned to shareholders through dividends and share repurchases during the fourth quarter.
- $1.0 billion returned to shareholders through share repurchases and dividends during FY2026.
- Quarterly cash dividend of $0.66 per share, representing an increase of 10% over the previous quarterly dividend.
- Dividend record date of August 20, 2026, payable on September 24, 2026.
- Guiding to more than $1.85 billion in capital to be returned to shareholders through share repurchases and dividends during FY 2027.
What drove it
- Strong demand across sleep devices, masks, accessories, and software solutions.
- Non-GAAP gross margin expansion was predominantly from productivity pipeline execution.
- Non-GAAP diluted earnings per share growth was predominantly attributable to strong sales growth and gross margin improvement.
- Completed acquisition of Noctrix Health, a medical device company selling FDA De Novo classified wearable therapeutics for Restless Leg Syndrome.
- Announced agreement to sell the MatrixCare business, with the transaction expected to close during the first quarter of Resmed’s fiscal year 2027.
- Launched AirSense 11 in Taiwan, AirCurve 11 ST/ST-A in the U.S., and AirTouch F30i Comfort in Brazil and Chile.
Concerns
- Fourth-quarter GAAP gross margin declined (200) bps to 58.8%.
- Fourth-quarter GAAP operating margin declined (300) bps to 30.7%, while GAAP income from operations declined (1)%.
- The primary difference between GAAP and non-GAAP gross margin was $42 million of Astral field safety notification expenses.
- Fourth-quarter operating cash flow declined (16)% and free cash flow declined (21)%.
- Residential Care Software revenue increased 2% in constant currency.
What to watch
- Completion of the MatrixCare business sale during the first quarter of Resmed’s fiscal year 2027.
- Execution toward more than $1.85 billion of FY 2027 capital returns through repurchases and dividends.
- The effect of Astral field safety notification expenses on GAAP gross margin and profitability.
- Demand across sleep devices, masks, accessories, and software solutions.
- Expansion of the AirSense 11, AirCurve 11 ST/ST-A, and AirTouch F30i Comfort launches.
Balance sheet and cash flow
- Fourth-quarter operating cash flow of $455 million.
- Fourth-quarter free cash flow of $404 million.
- FY 2026 operating cash flow of $1.8 billion.
- FY 2026 free cash flow of $1.6 billion.
Analysis
Resmed closed fiscal 2026 with fourth-quarter revenue of $1,464 million, up 9% and up 8% on a constant currency basis. Management attributed the growth to demand across sleep devices, masks, accessories, and software solutions. The reported segment commentary showed 8% growth for Americas Sleep and Breathing Health, 10% constant-currency growth for Rest of World Sleep and Breathing Health, and 2% constant-currency growth for Residential Care Software.
Management, verbatim
We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy.
Mick Farrell, Chairman and CEO
For full year 2026, our $1.6 billion in free cash flow enabled us to invest in innovation, strengthen our market leadership, and return more than $1 billion to our shareholders.
Mick Farrell, Chairman and CEO
As we enter fiscal year 2027, we will leverage our global scale and enhance our digital capabilities to benefit our patients, providers, and customers.
Mick Farrell, Chairman and CEO
Not in the filing
stated, not guessed- Fourth-quarter segment revenue amounts for Americas Sleep and Breathing Health, Rest of World Sleep and Breathing Health, and Residential Care Software.
- Quarter-over-quarter comparisons for reported financial metrics.
- FY 2027 revenue guidance.
- FY 2027 gross margin guidance.
- FY 2027 operating expense guidance.
- FY 2027 tax-rate guidance.
- Cash balance.
- Debt balance.
- Prior-quarter cash flow figures.
- Previous-release outlook for comparison with actual reported results.
- CFO commentary.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Resmed’s SEC 8-K (Item 2.02) with its Q4 and full-year FY2026 results for the quarter ended June 30, 2026, plus FY2027 shareholder return guidance and business updates.
Ticker impact
Resmed reported Q4 FY2026 revenue up 9% to a record $1.5B, with GAAP EPS $2.64 and non-GAAP EPS $2.95.
Likely positive bias for the next session as traders price in stronger earnings, margin expansion, and higher shareholder returns.
The filing includes specific quarterly and full-year results, margin and EPS growth, free cash flow, and a concrete FY2027 capital return target of more than $1.85B.
Market effects
Supports the sleep-disordered breathing and medical device demand narrative via reported margin expansion and cash generation.
No explicit regional macro shock; growth is described across Americas and Rest of World on constant-currency terms.
Global product launches and partnerships (sleep health education) reinforce ongoing international commercialization momentum.
Counterpoint
Gross margin declined in Q4 GAAP terms (58.8% vs 60.8%) and free cash flow fell year over year, which could temper enthusiasm despite EPS growth.
Key entities
- companyResmed Inc.
NYSE-listed medical device company reporting Q4 and full-year FY2026 results and FY2027 capital return guidance.
- business_unitMatrixCare
Resmed business unit agreed for sale, expected to close in the first quarter of FY2027.
- acquisition_targetNoctrix Health
Medical device company acquired by Resmed, focused on FDA De Novo classified wearable therapeutics for RLS.
- partnerŌURA
Partnered with Resmed to expand sleep health education and pathways to care.
