ResMed delivered strong results for fiscal year 2026, with full-year revenue reaching $5.7 billion, representing 10% growth or 8% growth on a constant currency basis. More notably for shareholders, the company’s non-GAAP diluted earnings per share increased 17% to $11.17, while the company returned more than $1 billion to shareholders through dividends and buybacks, a 70% increase from the prior year. This combination of solid revenue growth, earnings expansion, and enhanced capital returns demonstrates the company’s ability to generate value across multiple dimensions.
The earnings growth outpaced revenue growth, reflecting substantial operational leverage. ResMed’s non-GAAP gross margin expanded 240 basis points to 62.4%, while the non-GAAP operating margin improved 180 basis points to 36.1%. CEO Mick Farrell attributed this performance to continued momentum in global business, sustained demand for market-leading products, and disciplined execution of strategy. The company generated $1.8 billion in operating cash flow during the year and $1.6 billion in free cash flow, providing the financial foundation for both innovation investments and shareholder distributions.
Capital allocation priorities are evident in ResMed’s forward guidance. The company plans to return more than $1.85 billion to shareholders during fiscal year 2027, alongside a 10% increase in the quarterly dividend to $0.66 per share. This progressive capital return policy signals management confidence in the underlying business and its cash generation capability. For investors, this steady return of capital combined with reinvestment in innovation suggests the company views both defensive and growth opportunities as attractive.
On the strategic front, ResMed announced the sale of its MatrixCare business, expected to close in the first quarter of fiscal year 2027. Simultaneously, the company completed its acquisition of Noctrix Health, a medical device company focused on wearable therapeutics for Restless Leg Syndrome. These moves suggest a deliberate reshaping of the portfolio toward higher-margin digital health and therapeutic device businesses. The company also expanded partnerships with ÅŒURA to enhance sleep health education and pursued geographic expansion, launching AirSense 11 in Taiwan, AirCurve 11 ST/ST-A in the United States, and AirTouch F30i Comfort in Brazil and Chile.
Investors should monitor fiscal year 2027 execution against the company’s stated objectives of leveraging global scale, enhancing digital capabilities, and delivering on the $1.85 billion capital return commitment. The trajectory of gross margin expansion and the integration of recent acquisitions will be important metrics to track. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About ResMed Inc (ASX: RMD)
ResMed Inc develops and manufactures medical devices and cloud-based software for diagnosing, treating, and managing respiratory disorders including sleep apnea, chronic obstructive pulmonary disease, and neuromuscular disease. The company supplies flow generators, masks, and accessories globally, with the majority of revenue derived from operations in the Americas. ResMed also pursues digital health initiatives and acquisitions to enhance clinical data offerings for patients, healthcare providers, and payers in out-of-hospital settings.
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