RMD · ResMed Inc.

ResMed reported strong third quarter fiscal 2026 results, with revenue increasing 11% to $1.431 billion, driven by robust demand for sleep devices, masks, and accessories. Excluding currency effects, constant currency revenue growth was 8%. Geographic performance showed solid momentum, with U.S., Canada, and Latin America revenue (excluding Residential Care Software) growing 9%, while Europe, Asia, and other markets grew 7% on a constant currency basis. Residential Care Software revenue increased 4% on a constant currency basis.

Profitability metrics showed significant improvement. GAAP gross margin expanded 290 basis points to 62.2%, primarily attributed to component cost reductions, manufacturing and logistics efficiencies, and favorable product mix. Non-GAAP gross margin similarly expanded 290 basis points to 62.8%. Operating income grew 17% on a GAAP basis and 18% on a non-GAAP basis. SG&A expenses increased 11% on a constant currency basis, largely due to the VirtuOx acquisition, higher employee costs, and marketing investments, though the company noted acquisition and portfolio review expenses of $5.9 million.

The company demonstrated strong cash generation, with operating cash flow of $554 million for the quarter. Capital returns to shareholders totaled $262 million, comprising $87 million in dividends and $175 million in share repurchases. The balance sheet reflects a cash position of approximately $1.66 billion as of March 31, 2026. Separately, the Board declared a quarterly dividend of $0.60 per share, consistent with the company's ongoing capital return program.