ResMed Reports $1.415 Billion in First-Quarter Fiscal 2027 Revenue
Key Facts
ResMed reported results on October 29 for the first quarter of fiscal 2027, ended September 30, 2026, with revenue of $1.415 billion, up 6% from the same period a year earlier. Revenue was $1.336 billion in the first quarter of fiscal 2026. On an underlying constant-currency basis, revenue increased 7%, according to the company’s statement. ResMed attributed the growth primarily to strong demand for sleep devices, masks and accessories. Chief Executive Mick Farrell said the company began the fiscal year with "a strong first quarter," driven by continued global demand and operational execution across its business.
Growth was spread across the company’s businesses and regions: revenue from its Americas and rest-of-world sleep and respiratory care businesses rose 7% and 8%, respectively, on an underlying constant-currency basis. Residential care software revenue increased 5% during the quarter. The figures reflect a broadening of revenue growth across devices, software and geographic markets. In the previous quarter, revenue had risen 9% to a record of about $1.5 billion. The reported growth rate in the first quarter was therefore lower than in the previous quarter, while underlying revenue growth remained at 7%.
Profit margins moved in different directions. GAAP operating margin was 32.0%, compared with 33.4% a year earlier, while non-GAAP operating margin declined to 35.8% from 36.1%. By contrast, non-GAAP gross margin in the previous quarter rose 90 basis points to 62.3%. The company said that earlier improvement was driven primarily by the execution of productivity initiatives. Farrell also linked the current quarter’s results to operational execution, but did not specify in his quote how much that factor contributed to margins.
Net income rose to $418 million from $349 million in the year-earlier period. GAAP diluted earnings per share increased to $2.92 from $2.37. Non-GAAP diluted earnings per share was $2.91, compared with $2.55 a year earlier. Farrell said the company is investing cash flow and proceeds from the sale of MatrixCare in innovation and returning capital to shareholders. The company’s shares closed at $250.17 on October 28, according to EL7 data.
ResMed left its fiscal 2027 outlook unchanged, targeting underlying constant-currency revenue growth of between 5% and 7%. It expects reported revenue of between $5.75 billion and $5.85 billion and non-GAAP diluted earnings per share of between $12.00 and $12.25. The company declared a quarterly cash dividend of $0.66 per share, with November 12, 2026, set as the record date for eligible shareholders and December 17 as the payment date. The company was also scheduled to discuss the quarterly results in an investor webcast at 1:30 p.m. Pacific time on the day of the announcement. Before the results, the company announced on October 19 the U.S. launch of the AirTouch F40 fabric full-face mask, the latest addition to its range of fabric continuous positive airway pressure masks.