ResMed (ASX:RMD) has reported a strong start to financial year 2026, with revenue up nine per cent to US$1.34 billion (eight per cent on a constant currency basis), driven by continued demand for its sleep and respiratory care devices, masks, and software solutions.
Chairman and CEO Mick Farrell said the results underscored the company’s ongoing transformation of home healthcare through a combination of hardware, software, and digital innovation. “We delivered nine per cent headline revenue growth year-over-year, with a very strong 280 basis points of non-GAAP gross margin expansion, resulting in double-digit bottom-line performance. These results reinforce the success of our strategy to transform healthcare in the home,” he said.
Gross margin improved to 61.5 per cent, up 290 basis points, reflecting manufacturing and logistics efficiencies and lower component costs. Gross margin reached 62 per cent. Income from operations increased 15 per cent to US$446.5 million. Diluted earnings per share grew 12 per cent to US$2.37.
Operating cash flow was US$457 million, outpacing net income of US$349 million. During the quarter, ResMed paid US$88 million in dividends and repurchased 523,000 shares, valued at US$150 million, as part of its capital management program.
Revenue in the United States, Canada, and Latin America increased by 10 per cent, driven by the continued adoption of devices and masks. In Europe, Asia, and other markets, revenue increased six per cent on a constant currency basis, while Residential Care Software sales grew five per cent.
The quarter also featured a series of innovations and leadership milestones. A study published in The Lancet Respiratory Medicine projected that 77 million U.S. adults could have obstructive sleep apnea by 2050, highlighting the need for scalable care models. ResMed received two Red Dot Design Awards for its AirTouch N30i mask, which was recognised for its patient-centred design. The company also launched the Sleep Institute, a global initiative aimed at advancing clinical insights and policy innovation in the field of sleep health. In corporate developments, Nicole Mowad-Nassar was appointed to the board, and Rich Sulpizio announced his retirement following the November 2025 annual meeting.
Farrell said the company remains focused on operational excellence and continues to invest in innovation. “As we advance through fiscal 2026, we remain committed to delivering strong, sustainable, profitable growth as we provide access to life-changing care for the billions of people worldwide who need our market-leading healthcare solutions delivered right where they live.”