ResMed (ASX: RMD) Lifts FY2026 Revenue 10% as Margins Expand

ResMed reported higher annual revenue, earnings and margins as demand grew across its sleep-health portfolio. The medical-device group also reshaped its portfolio through one acquisition and a planned software divestment.

All financial figures are in US dollars. ResMed’s ASX-listed securities are CHESS Depositary Interests, with 10 interests representing one New York-listed share.

Earnings and margins rise

Revenue increased 10% to $5.65 billion for the year ended June 30, 2026. On a constant-currency basis, growth was 8%.

Net income rose 9% to $1.52 billion. Diluted earnings increased 10% to $10.43 per share from $9.51.

Gross profit climbed 13% to $3.45 billion. The gross margin expanded to 61.1% from 59.4%, supported by procurement, manufacturing and logistics efficiencies.

Those gains were partly offset by $41.9 million of Astral field-safety notification expenses. The provision covers estimated costs for replacing a component in some Astral devices.

Operating income rose 12% to $1.89 billion. On ResMed’s adjusted basis, operating margin reached 36.1%, compared with 34.3% a year earlier.

Sleep portfolio drives growth

Sleep and Breathing Health revenue increased 10% to $4.98 billion. Excluding currency movements, the segment grew 9%.

Device revenue rose 9% to $2.89 billion. Masks and other products performed better, increasing 13% to $2.09 billion.

Growth reflected higher demand and unit sales across the sleep-health portfolio. Lower life-support device volumes provided a partial offset.

Americas revenue increased 9% to $3.28 billion. Rest-of-world revenue rose 13%, or 7% in constant currency, to $1.70 billion.

Residential Care Software revenue advanced 5% to $676 million. Constant-currency growth was 4%, despite weaker Senior Living and Long-Term Care performance.

Portfolio changes sharpen focus

ResMed completed its $335 million acquisition of Noctrix Health on June 1. Noctrix owns an FDA De Novo classified wearable neurostimulation device for treating restless legs syndrome.

The acquisition added $202 million of goodwill and $106.8 million of developed technology. Its impact on consolidated earnings during the year was not material.

Separately, ResMed agreed to sell MatrixCare for $490 million in cash, subject to closing adjustments. Completion is expected during the first quarter of fiscal 2027.

MatrixCare generated about $220 million of fiscal 2026 revenue and $28 million of operating profit. That profit included about $28 million of acquired-intangible amortisation.

Cash generation and capital returns

Operating cash flow increased to $1.81 billion from $1.75 billion. Cash and equivalents reached $1.47 billion at year-end, while total debt stood at $660 million.

ResMed repurchased $700 million of shares and paid $350 million in dividends during fiscal 2026. The board later declared a quarterly dividend of $0.66 per share, up from $0.60.

Research and development spending increased 14% to $378 million. It represented 6.7% of revenue, compared with 6.4% in fiscal 2025.