Resmed Posts 10% Revenue Growth and Boosts Dividend by 10%

Robust Financial Performance Caps Fiscal 2026

Resmed Inc. (ASX:RMD, NYSE:RMD) closed fiscal 2026 with a solid set of results, posting a 10% increase in annual revenue to $5.7 billion and a 17% jump in non-GAAP diluted earnings per share to $11.17. The company’s fourth quarter alone saw revenue climb 9% to a record $1.5 billion, with non-GAAP EPS up 16% to $2.95, driven by sustained demand across its sleep devices, masks, accessories, and software solutions.

Gross margins expanded notably, with GAAP gross margin rising 170 basis points to 61.1%, and non-GAAP gross margin up 240 basis points to 62.4%, reflecting productivity gains despite a $42 million charge linked to Astral field safety notifications. Operating margins also improved, with GAAP operating margin edging up 70 basis points to 33.4% and non-GAAP operating margin increasing 180 basis points to 36.1% on the back of disciplined cost management.

Strong Cash Flow and Shareholder Returns

Cash generation remained robust, with operating cash flow of $1.8 billion and free cash flow of $1.6 billion for the year. Resmed returned over $1 billion to shareholders in FY2026 through a combination of dividends and share buybacks, marking a more than 70% increase in capital returned compared to the prior year.

Continuing this trend, the company declared a 10% increase in its quarterly dividend to $0.66 per share, payable in September, and guided to return more than $1.85 billion to shareholders in FY2027 through dividends and repurchases. This signals confidence in its cash flow outlook and commitment to rewarding investors.

Strategic Portfolio Moves and Product Launches

Resmed also announced the upcoming sale of its MatrixCare business, expected to close in the first quarter of FY2027, aligning with its strategic focus on core sleep and breathing health technologies. The MatrixCare divestment follows a recent $490 million cash deal and is intended to sharpen the company’s portfolio.

In parallel, Resmed completed the acquisition of Noctrix Health, a medical device company specialising in FDA De Novo classified wearable therapeutics for Restless Leg Syndrome. This move expands Resmed’s footprint in digital health and wearable therapeutics, complementing its existing AI-powered and cloud-connected devices.

The company continued product innovation with the launch of AirSense 11 in Taiwan, AirCurve 11 ST/ST-A in the U.S., and AirTouch F30i Comfort in Brazil and Chile, reinforcing its global reach across key markets.

Global Revenue Growth and Regional Performance

Geographically, the Americas segment saw an 8% revenue increase in Q4, driven by 6% growth in devices and 10% in masks and accessories. The Rest of World segment grew 10% on a constant currency basis, with devices up 9% and masks and other products up 12%. Residential Care Software revenue rose modestly by 2% in constant currency, reflecting steady demand for digital health solutions.

Looking ahead, Resmed’s CEO Mick Farrell emphasised plans to leverage the company’s global scale and enhance digital capabilities to improve patient outcomes and reduce healthcare costs, aiming to sustain long-term profitable growth.