Resmed Posts 11% Revenue Growth with Margin Gains and U.S. Expansion Plans
Resmed delivered a robust Q3 FY2026 with 11% revenue growth, margin expansion, and a 21% jump in non-GAAP EPS, while announcing a new U.S. distribution centre and a $0.60 dividend.
- 11% revenue growth to $1.43 billion
- 290 basis points gross margin expansion
- 21% non-GAAP EPS increase to $2.86
- Operating cash flow of $554 million
- New U.S. distribution centre planned for 2027
Strong Revenue and Earnings Momentum
Resmed Inc (ASX:RMD, NYSE:RMD) posted solid fiscal Q3 results with revenue climbing 11% to $1.43 billion, or 8% on a constant currency basis, reflecting sustained global demand for its sleep and breathing health products. Non-GAAP diluted earnings per share surged 21% to $2.86, underscoring improved profitability. Gross margins expanded by 290 basis points to 62.8% non-GAAP, driven by component cost efficiencies and manufacturing improvements.
The company’s operating income rose 17-18%, supported by disciplined execution despite a 14% rise in non-GAAP selling, general, and administrative expenses. These expenses were elevated partly due to acquisition-related costs from the VirtuOx deal and investments in marketing and technology. Resmed returned $262 million to shareholders through dividends and share buybacks during the quarter.
Regional and Product Segment Growth
Growth was broad-based geographically. Revenue in the Americas (U.S., Canada, Latin America) increased 9%, while Europe, Asia, and other markets grew 7% on a constant currency basis. The Residential Care Software segment also contributed, with a 4% constant currency revenue increase. The company’s device and mask sales were particularly strong, with masks and accessories growing 15% globally.
This performance builds on earlier momentum, following Resmed’s 11% revenue rise in Q2 FY2026, where gross margin gains and AI-driven product innovation were key highlights 11 percent revenue increase. The company continues to navigate patent litigation while maintaining robust financial health.
Expansion and Product Launches
Looking ahead, Resmed announced plans to open a new distribution centre in Greenwood, Indiana, in 2027. This facility aims to expand its U.S. operational footprint and enhance distribution capacity to better serve patients and providers across North America. The move aligns with Resmed’s strategy to scale digital health capabilities and improve global access to care.
Product innovation remains a focus, with the recent U.S. launch of the AirTouch F30i Comfort full face mask, following its introduction in Australia and Canada. This builds on the AirTouch F30i Clear launch in the U.S., reinforcing Resmed’s commitment to expanding its mask portfolio.
Capital Management and Dividend Update
Resmed declared a quarterly dividend of $0.60 per share, payable in June 2026, maintaining a steady return to shareholders. This follows the company’s recent dividend currency adjustments for ASX CDI holders, reflecting foreign exchange considerations for Australian investors ResMed Revises FX Rate. The company’s balance sheet remains strong, with cash and equivalents rising to $1.66 billion and manageable debt levels.
Operating cash flow reached $554 million for the quarter, comfortably covering dividends and buybacks, and supporting ongoing investments in R&D and strategic acquisitions. Resmed’s financial discipline appears intact amid investment in growth and portfolio expansion.
Bottom Line?
Resmed’s Q3 results confirm its steady growth trajectory, but the impact of acquisition costs and currency fluctuations warrants close monitoring as it expands U.S. operations and digital health offerings.
Questions in the middle?
- How will acquisition-related expenses affect Resmed’s margins in coming quarters?
- What impact will the new U.S. distribution centre have on supply chain efficiency and costs?
- Can Resmed sustain double-digit EPS growth amid rising SG&A and competitive pressures?
