GAAP gross margin up 290 bps to 62.2%; non-GAAP gross margin up 290 bps to 62.8%
GAAP income from operations increased 17%; non-GAAP income from operations up 18%
GAAP diluted earnings per share of $2.74; non-GAAP diluted earnings per share of $2.86
Operating cash flow of $554 million; $262 million returned to shareholders through share repurchases and dividends
Note: A webcast of Resmed's conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com
SAN DIEGO, April 30, 2026 (GLOBE NEWSWIRE) -- Resmed Inc. (NYSE:RMD, ASX: RMD)) today announced results for its quarter ended March 31, 2026.
"Our third quarter results reflect the continued strength of our global business, driven by ongoing demand for our market-leading products and disciplined execution of our strategy," said Resmed's Chairman and CEO, Mick Farrell.
"Year-over-year, we delivered 11% reported revenue growth, 290 basis points of non-GAAP gross margin expansion, and 21% increase in earnings per share. These results highlight the momentum behind our strategy, and the continued progress we are making in shaping the future of sleep health, breathing health, and healthcare in the home.
As we advance through the remainder of our fiscal year 2026, we remain focused on expanding access to care globally, scaling our digital health capabilities, and delivering further strong, profitable growth."
Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts
Three Months Ended
March 31,2026
March 31,2025
% Change
ConstantCurrency (A)
Revenue
$
1,431.4
$
1,291.7
11
%
8
%
Gross margin
62.2
%
59.3
%
5
Non-GAAP gross margin (B)
62.8
%
59.9
%
5
Selling, general, and administrative expenses
285.7
245.3
16
11
Non-GAAP selling, general, and administrative expenses(B)
279.8
245.3
14
9
Research and development expenses
94.3
83.9
12
8
Income from operations
499.8
426.3
17
Non-GAAP income from operations (B)
524.8
444.6
18
Net income
398.7
365.0
9
Non-GAAP net income (B)
417.2
348.5
20
Diluted earnings per share
$
2.74
$
2.48
10
Non-GAAP diluted earnings per share (B)
$
2.86
$
2.37
21
Nine Months Ended
March 31,2026
March 31,2025
% Change
ConstantCurrency (A)
Revenue
$
4,189.8
$
3,798.3
10
%
8
%
Gross margin
61.8
%
58.8
%
5
Non-GAAP gross margin (B)
62.4
%
59.4
%
5
Selling, general, and administrative expenses
823.2
725.9
13
10
Non-GAAP selling, general, and administrative expenses(B)
817.4
725.9
13
9
Research and development expenses
272.6
244.8
11
9
Income from operations
1,438.0
1,230.8
17
Non-GAAP income from operations (B)
1,524.1
1,286.9
18
Net income
1,139.9
1,021.0
12
Non-GAAP net income (B)
1,203.5
1,032.2
17
Diluted earnings per share
$
7.79
$
6.93
12
Non-GAAP diluted earnings per share (B)
$
8.22
$
7.00
17
(A)
In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a "constant currency" basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.
(B)
See the reconciliation of non-GAAP financial measures in the table at the end of the press release.
Discussion of Third Quarter ResultsAll comparisons are to the prior year period unless otherwise noted
Revenue grew by 8 percent on a constant currency basis, driven by increased demand for our portfolio of sleep devices, masks and accessories.
Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9 percent.
Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 7 percent on a constant currency basis.
Residential Care Software revenue increased by 4 percent on a constant currency basis.
Gross margin increased by 290 basis points primarily driven by component cost improvements and manufacturing and logistics efficiencies, as well as a small positive impact from product mix and foreign currency movements. Non-GAAP gross margin increased by 290 basis points due to the same factors.
Selling, general, and administrative expenses increased by 11 percent on a constant currency basis. The increase in SG&A expenses was mainly due to additional expenses associated with our VirtuOx acquisition, employee costs as well as marketing and technology investments. Additionally, we recorded acquisition and portfolio review related expenses of $5.9 million reflecting costs associated with the evaluation of strategic transactions, including legal and professional fees for diligence and related consultations. SG&A expenses, excluding acquisition and portfolio review related expenses, were 19.5 percent of revenue in the quarter, compared with 19.0 percent in the same period of the prior year.
Income from operations increased by 17 percent and non-GAAP income from operations increased by 18 percent.
Net income for the quarter was $399 million and diluted earnings per share was $2.74. Non-GAAP net income increased by 20 percent to $417 million, and non-GAAP diluted earnings per share increased by 21 percent to $2.86, predominantly attributable to strong sales growth and gross margin improvement.
Operating cash flow for the quarter was $554 million, compared to net income in the current quarter of $399 million and non-GAAP net income of $417 million.
During the quarter, we paid $87 million in dividends to shareholders and repurchased 673,000 shares for consideration of $175 million as part of our ongoing capital management.
Other Business and Operational Highlights
Unveiled findings from sixth annual Global Sleep Survey, drawing insights from 30,000 people across 13 countries; as sleep awareness grows, so does the opportunity to turn intent into action.
Announced expansion of U.S. operations with new distribution center in Greenwood, Indiana, scheduled to begin operations in 2027 and expand Resmed's U.S. presence while strengthening the company's distribution capacity to better serve patients and providers across North America.
Launched the AirTouch F30i Comfort full face mask in the U.S. following its introduction in Australia and Canada, and building on the launch of the AirTouch F30i Clear in the U.S.
Dividend programThe Resmed board of directors today declared a quarterly cash dividend of $0.60 per share. The dividend will have a record date of May 14, 2026, payable on June 18, 2026. The dividend will be paid in U.S. currency to holders of Resmed's common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests ("CDIs") trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be May 13, 2026, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX's settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from May 13, 2026, through May 14, 2026, inclusive.
Webcast detailsResmed will discuss its third quarter fiscal year 2026 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on Resmed's Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the "Q3 2026 Earnings Webcast" to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13759381. The telephone replay will be available until May 14, 2026.
About ResmedResmed (NYSE:RMD, ASX: RMD)) creates life-changing health technologies that people love. We're relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we're redefining sleep health at Resmed.com and follow
Safe harbor statementStatements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding Resmed's projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in Resmed's periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements.
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations(Unaudited; $ in thousands, except for per share amounts)
Three Months Ended
Nine Months Ended
March 31,2026
March 31,2025
March 31,2026
March 31,2025
Net revenue
$
1,431,406
$
1,291,736
$
4,189,796
$
3,798,334
Cost of sales
532,577
517,883
1,575,796
1,540,684
Amortization of acquired intangibles (1)
7,850
7,444
23,480
22,748
Total cost of sales
$
540,427
$
525,327
$
1,599,276
$
1,563,432
Gross profit
$
890,979
$
766,409
$
2,590,520
$
2,234,902
Selling, general, and administrative
279,797
245,302
817,387
725,894
Acquisition and portfolio review related expenses (1)
5,858
—
5,858
—
Total selling, general, and administrative
285,655
245,302
823,245
725,894
Research and development
94,267
83,944
272,560
244,840
Amortization of acquired intangibles (1)
11,247
10,895
34,967
33,345
Restructuring expenses (1)
—
—
21,745
—
Total operating expenses
$
391,169
$
340,141
$
1,152,517
$
1,004,079
Income from operations
$
499,810
$
426,268
$
1,438,003
$
1,230,823
Other income (expenses), net:
Interest (expense) income, net
$
12,287
$
793
$
29,029
$
(1,643
)
Gain (loss) attributable to equity method investments
1,718
335
4,722
2,375
Gain (loss) on equity investments
(10,130
)
(5,647
)
(16,014
)
(7,765
)
Other, net
(1,373
)
(4,056
)
(10,488
)
(4,277
)
Total other income (expenses), net
2,502
(8,575
)
7,249
(11,310
)
Income before income taxes
$
502,312
$
417,693
$
1,445,252
$
1,219,513
Income taxes
103,580
52,652
305,391
198,495
Net income
$
398,732
$
365,041
