How Resmed’s 10% Revenue Growth Fuels a 13% Dividend Boost
Resmed Inc. reported a robust 10% revenue increase and a 19% rise in operating profit for fiscal 2025, alongside a 13% dividend hike, driven by strong demand for sleep and breathing health devices and growth in digital health software.
- 10% revenue growth in FY2025 to $5.1 billion
- 19% increase in operating profit year-over-year
- 13% quarterly dividend increase to $0.60 per share
- Operating cash flow of $539 million in Q4
- Acquisition of VirtuOx to enhance at-home diagnostic services
Strong Financial Performance
Resmed Inc. has closed fiscal year 2025 on a high note, delivering a 10% increase in revenue to $5.1 billion and a 19% rise in operating profit compared to the previous year. The company’s fourth quarter alone saw revenue climb 10% to $1.3 billion, supported by a 230 basis point improvement in gross margin, reflecting operational efficiencies and favorable currency movements.
These results underscore Resmed’s leadership in the sleep and breathing health market, with demand for its devices and masks portfolio remaining robust across key regions including the U.S., Canada, Latin America, Europe, and Asia. The company’s expanding digital health ecosystem, particularly its Residential Care Software segment, also contributed to sustained organic growth.
Dividend and Cash Flow Highlights
In recognition of its strong cash generation, Resmed increased its quarterly dividend by 13% to $0.60 per share, signaling confidence in ongoing profitability and shareholder returns. Operating cash flow for the quarter reached $539 million, providing ample liquidity to support continued investments and capital management initiatives, including a $100 million share buyback during the period.
Strategic Expansion and Innovation
Beyond financial metrics, Resmed announced the acquisition of VirtuOx, a leading independent diagnostic testing facility specializing in sleep, respiratory, and cardiac conditions. This move aims to strengthen Resmed’s position in at-home diagnostic services, enabling earlier patient intervention and more connected care delivery.
The company also reinforced its commitment to innovation and digital health leadership, showcasing research at the SLEEP 2025 conference and launching high-profile campaigns such as the partnership with Qatar Airways British and Irish Lions Tour. These initiatives highlight Resmed’s strategy to integrate hardware, software, and healthcare solutions to improve patient outcomes globally.
Looking Ahead
As Resmed enters fiscal year 2026, it plans to continue investing in innovation and scaling its digital health capabilities. The company aims to deepen partnerships with patients, providers, payers, and policymakers to broaden access to care and enhance quality of life for people with chronic respiratory conditions worldwide.
Bottom Line?
Resmed’s strong fiscal 2025 results and strategic moves position it well for sustained growth in the evolving digital health landscape.
Questions in the middle?
- How will the VirtuOx acquisition impact Resmed’s revenue and margins in the near term?
- What are the company’s plans to navigate potential currency fluctuations affecting international sales?
- How aggressively will Resmed invest in digital health innovation versus traditional device manufacturing?
