Resmed reports double-digit increase in revenue for full year 2026

SAN DIEGO – Resmed reported revenue of $1.5 billion for the fourth quarter of fiscal year 2026, a 9% increase, and $5.7 billion for the full year, a 10% increase.

“We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy,” said Chairman and CEO Mick Farrell. “Year-over-year, we delivered 9% reported revenue growth, 90 basis points of gross margin expansion, and a 16% increase in earnings per share. For full year 2026, our $1.6 billion in free cash flow enabled us to invest in innovation, strengthen our market leadership, and return more than $1 billion to our shareholders.”

Other financial highlights for Q4:

• Americas Sleep and Breathing Health revenue grew 8%, Rest of World Sleep and Breathing Health grew 10% in constant currency, and Residential Care Software revenue increased 2% in constant currency.
• GAAP gross margin of 58.8%. Non-GAAP gross margin increased 90 basis points to 62.3%, predominantly from productivity pipeline execution. The primary difference is the $42 million Astral field safety notification expenses.
• GAAP income from operations of $449 million and GAAP diluted earnings per share of $2.64. Non-GAAP income from operations increased 8% and non-GAAP diluted earnings per share grew 16% to $2.95, predominantly attributable to strong sales growth and gross margin improvement.
• Operating cash flow totaled $455 million and free cash flow totaled $404 million, supporting $287 million returned to shareholders through dividends and share repurchases while maintaining investment in innovation and growth initiatives.

Other financial highlights for FY 2026:

• Revenue increased by 10% to $5.7 billion; up 8% on a constant currency basis
• GAAP gross margin up 170 bps to 61.1%; non-GAAP gross margin up 240 bps to 62.4%
• GAAP operating margin up 70 bps to 33.4%, non-GAAP operating margin up 180 bps to 36.1%
• GAAP diluted earnings per share of $10.43; non-GAAP diluted earnings per share of $11.17, an increase of 17%
• Operating cash flow of $1.8 billion; free cash flow of $1.6 billion

“As we enter fiscal year 2027, we will leverage our global scale and enhance our digital capabilities to benefit our patients, providers, and customers,” Farrell said. “We will use our industry-leading portfolio to improve patient outcomes, reduce healthcare costs, and drive long-term profitable growth for our shareholders.”