ResMed Reports Record Q4 Revenue of US$1.5 Billion, Full-Year FY2026 Revenue Up 10% to US$5.7 Billion
Key Takeaways
- •ResMed achieved record fourth-quarter revenue of US$1.5 billion and full-year FY2026 revenue of US$5.7 billion, representing 10% year-over-year growth.
- •The company expanded its non-GAAP gross margin by 240 basis points to 62.4% and increased its non-GAAP operating margin by 180 basis points to 36.1% during fiscal year 2026.
- •ResMed generated US$1.6 billion in free cash flow in FY2026 and returned more than US$1 billion to shareholders through dividends and share repurchases.
- •For fiscal year 2027, ResMed plans to return over US$1.85 billion to shareholders and has raised its quarterly dividend by 10% to $0.66 per share.
- •Despite reporting strong financial results, ResMed's shares closed down 4.73% at $29.99 with a market capitalization of approximately US$4.540 billion.
ResMed Inc. (ASX:RMD), a specialist in AI-powered digital health solutions for sleep apnea, chronic obstructive pulmonary disease, and other respiratory care conditions, has reported record fourth-quarter revenue of US$1.5 billion for the quarter ended June 30, 2026, capping off a fiscal year marked by double-digit revenue growth and expanded margins. ResMed is one of the world's largest manufacturers of CPAP and bilevel devices, masks, and cloud-connected respiratory care software used in both home and clinical settings.
The company's sustained growth comes as the global sleep-disordered breathing market continues to expand, driven by rising obesity rates, aging populations, and growing awareness of the health risks associated with untreated sleep apnea, including cardiovascular disease and diabetes.
"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 9.0% reported revenue growth, 90 basis points of gross margin expansion, and a 16% increase in earnings per share," Farrell continued. "For full year 2026, our US$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."
Looking ahead to fiscal year 2027, Farrell told shareholders that ResMed will leverage its global scale and enhance its digital capabilities to benefit patients, providers, and customers. "We will use our industry-leading portfolio to improve patient outcomes, reduce healthcare costs, and drive long-term profitable growth for our shareholders," he said. ResMed's digital health ecosystem, which includes its myAir patient engagement platform and AirView clinical management software, has been a key differentiator as the company increasingly positions itself as a data-driven healthcare technology provider.
Financial Highlights — Full Year FY2026
- Revenue increased 10% to US$5.7 billion, up 8% on a constant currency basis.
- GAAP gross margin rose 170 bps to 61.1%; non-GAAP gross margin rose 240 bps to 62.4%.
- GAAP operating margin increased 70 bps to 33.4%; non-GAAP operating margin increased 180 bps to 36.1%.
- Free cash flow reached US$1.6 billion.
Capital Returns and FY2027 Outlook
ResMed is guiding to more than US$1.85 billion in capital to be returned to shareholders through share repurchases and dividends during fiscal year 2027. The company also announced a quarterly dividend increase of 10% to $0.66 per share.
Following the announcement, RMD shares closed down 4.73% at $29.99, with a market capitalization of approximately $4.540 billion.
