ResMed Net Income Rises to $418 Million as Sleep and Respiratory Revenue Grows
Key Facts
ResMed said net income rose to $418 million in the first quarter of fiscal 2027, compared with $349 million in the year-earlier period, according to its results statement issued on October 29, 2026. Results showed growth across its sleep and respiratory care businesses and residential care software. The company said sleep and respiratory care revenue in the Americas increased 7% year over year, while revenue in the rest of the world rose 8%. Residential care software revenue also grew 5% on a constant-currency basis. The figures were part of quarterly results that the company described as reflecting 7% underlying constant-currency revenue growth.
On profitability, non-GAAP gross margin was 62.5%, up 50 basis points from the year-earlier period. ResMed attributed the improvement mainly to the execution of productivity initiatives, saying execution across its productivity pipeline was the predominant driver of the margin increase. The development adds an indication of improving efficiency alongside revenue growth across the company’s segments and regions. The year-over-year comparison provides a measure of margin performance during the quarter, while management also said expansion costs could affect margin in the following quarter. The results therefore combined an annual improvement in margin with expectations of a slight sequential decline.
Management kept its fiscal 2027 outlook unchanged, targeting underlying constant-currency revenue growth of between 5% and 7%. It forecast 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 ranges were maintained after the company posted 7% underlying revenue growth in the first quarter, at the upper end of its annual revenue growth target. That does not mean the full-year result has been achieved; guidance remains management’s estimate for the full fiscal year. On the earnings call, management said it expects a seasonal pattern similar to the mid-single-digit revenue increase from the first quarter to the second.
The sequential comparison has an additional factor, as the first quarter included two months of MatrixCare revenue, management said on the earnings call. It said the expected seasonal increase between the quarters does not remove the effect of the different period of MatrixCare’s contribution in the comparison. Management also expected a slight sequential decline in non-GAAP gross margin because of expansion costs. It said the usual revenue increase from the first quarter to the second was in the mid-single-digit range and that it expects a similar seasonal pattern this year. This puts the near-term outlook in the context of seasonality, the timing of MatrixCare revenue and expansion costs.
On shareholder returns, ResMed said it returned more than $1 billion to shareholders during the first quarter through dividends and share repurchases. The company linked the amount to proceeds from the sale of MatrixCare and cash flow, while reaffirming its continued investment in innovation and growth. On October 29, it declared a quarterly cash dividend of $0.66 per share. It set November 12, 2026, as the record date for eligible shareholders, with payment scheduled for December 17, 2026. The company’s stated policy combines returning capital to shareholders with funding investment, according to its statement.
The first-quarter results follow strong performance at the end of the previous fiscal year. In the fourth quarter of fiscal 2026, revenue rose 9% to a record $1.5 billion, while non-GAAP diluted earnings per share increased 16% to $2.95. For fiscal 2026 as a whole, the company reported on August 6, 2026, that revenue grew 10% to $5.7 billion. GAAP operating margin also increased 70 basis points to 33.4%. These earlier results provide context for the growth trajectory with which the company entered the new fiscal year.