Resmed CEO: ‘We began fiscal year 2027 with a strong first quarter’

SAN DIEGO – Resmed reported revenue increased 6% to $1.4 billion in the first quarter of fiscal year 2027.

On a core constant currency basis, Americas Sleep and Breathing Health revenue grew 7%, Rest of World Sleep and Breathing Health grew 8% and Residential Care Software revenue increased 5%.

“We began fiscal year 2027 with a strong first quarter, driven by continued global demand for our sleep and breathing health solutions and ongoing execution across our business,” said Resmed's chairman and CEO, Mick Farrell. “Year over year, we grew core constant currency revenue 7%, expanded non-GAAP gross margin by 50 basis points, and increased non-GAAP earnings per share by 14%. Our strong free cash flow and the proceeds from our divestiture of MatrixCare enabled us to both invest in innovation and return more than $1 billion to shareholders during the quarter.”

Other financial highlights:

• GAAP gross margin of 61.5%. Non-GAAP gross margin increased 50 basis points to 62.5%, predominantly from productivity pipeline execution.
• GAAP operating margin of 32.0% and GAAP diluted earnings per share of $2.92. Non-GAAP operating margin of 35.8% and non-GAAP diluted earnings per share of $2.91, up 14% year-over-year, predominantly attributable to strong revenue growth and gross margin improvement.
• Operating cash flow totaled $422 million and free cash flow totaled $374 million. Proceeds from the sale of MatrixCare and strong cash flows supported $1 billion returned to shareholders through dividends and share repurchases while maintaining investment in innovation and growth initiatives.

Among the business and operational highlights for the quarter:

• Closed the previously announced divestiture of the MatrixCare business.
• Announced the U.S. launch of the AirTouch F40, the newest addition to Resmed’s growing portfolio of fabric CPAP masks.
• Partnered with Eight Sleep to connect its technology with Resmed sleep insights for people in the U.S. and Australia, and with 23XI Racing NASCAR driver Tyler Reddick, following his sleep apnea diagnosis, to help others recognize the signs and seek treatment.
• Announced appointment of Carol Burt as lead director, effective Nov. 15, 2026, after the planned retirement of Director Ron Taylor.

“Looking ahead to the rest of fiscal year 2027, we will continue to build our core sleep and breathing health businesses by extending the reach of our digital health ecosystem and connecting more of the people worldwide who need care with life-saving treatment delivered right in their own home,” Farrell said.