Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ResMed's fiscal year 2026 results were defined by double-digit growth in its sleep and breathing health portfolio, with revenue and diluted EPS each up about 10% year over year. Management attributed the top-line increase primarily to higher demand and unit sales across sleep devices and masks, partially offset by lower life support device sales. Gross margin expanded on procurement, manufacturing, and logistics efficiencies, while the company absorbed a field safety notification charge for Astral devices. The main tension was below-line: a higher effective tax rate due to Pillar Two and non-recurring prior-year tax benefits held net income growth to single digits. The year also included portfolio moves with the Noctrix acquisition and an agreement to sell MatrixCare for $490 million.
Revenue
$5.65B
+9.85% YoY
EPS (Diluted)
$10.43
+9.67% YoY
Gross Margin
61.1%
+1.7 pts YoY
Operating Income
$1.89B
+11.95% YoY
Filed · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified opinion on the consolidated financial statements (Source: Report of Independent Registered Public Accounting Firm)
Next RMD earnings expected
Source: SEC XBRL
Resmed (RMD) reported FY2026 revenue of $5.65B, up 9.9% year over year. Operating margin was 33.4%, up 0.7 points from 32.7% a year earlier. Operating cash flow was $1.81B, up 3.1% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.95 | 2.92 | Beat +1.1% |
| Mar 2026 | 2.86 | 2.82 | Beat +1.3% |
| Dec 2025 | 2.81 | 2.75 | Beat +2.1% |
| Sep 2025 | 2.55 | 2.58 | Miss -1.2% |
Reported EPS of $2.95 versus the $2.92 analyst consensus — a +1.1% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $5.65B, which is the $5.65B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure RMD itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Total revenue grew 10% reported, or 8% on a constant currency basis. Sleep and Breathing Health grew 10% reported (9% constant currency), with Rest of World up 13% reported but only 7% constant currency, reflecting a favorable currency impact.
Source: 10-K Item 7 MD&A
Gross margin expanded to 61.1% from 59.4% primarily due to procurement, manufacturing and logistics efficiencies, partially offset by $41.9 million in Astral field safety notification expenses recognized in fiscal 2026.
Source: 10-K Item 7 MD&A
Selling, general and administrative expenses rose 13% to $1.12 billion, driven by employee-related costs, VirtuOx and Noctrix acquisition expenses, marketing and technology investments, and $11 million of acquisition and portfolio review charges tied to the MatrixCare sale and Noctrix acquisition.
Source: 10-K Item 7 MD&A
The effective tax rate increased to 20.6% from 16.5%, primarily due to Pillar Two global minimum tax implementation and non-recurring fiscal 2025 tax benefits, including IRS interest and penalty refunds and tax benefits from business cessation.
Source: 10-K Item 7 MD&A
ResMed acquired Noctrix Health in June 2026 to enter the restless legs syndrome therapy market, and agreed to sell the MatrixCare business for $490 million. MatrixCare contributed approximately $220 million of revenue and $28 million of operating profit in fiscal 2026 and is classified as held for sale.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
Management warns that pharmaceutical treatments such as GLP-1s, currently approved for diabetes and weight loss, may enhance patient health, lower obesity, or reduce the severity or existence of OSA. If alternative treatments or cures emerge, ResMed's sleep devices could become noncompetitive or obsolete.
Source: 10-K Item 1A Risk Factors
The filing notes competitor Philips continues to operate under a U.S. consent decree resulting from its product recall, and the temporary ban on Philips flow generators created customer opportunities. The timing or nature of Philips' substantial return is unpredictable and could increase competitive pressure on pricing and market share.
Source: 10-K Item 1A Risk Factors
Global economic conditions, inflation, supply chain disruptions, and reciprocal tariffs could raise costs and reduce demand. The U.S. has imposed significant tariffs and other countries may impose retaliatory tariffs, which could materially increase export costs and disrupt ResMed's global manufacturing and sourcing.
Source: 10-K Item 1A Risk Factors
The filing warns that failure to identify, execute, and integrate acquired businesses, or challenges related to strategic initiatives including divestitures, could harm operations. Recent activity includes the Noctrix acquisition and the planned $490 million MatrixCare sale, both requiring management attention and integration or separation risk.
Source: 10-K Item 1A Risk Factors
ResMed is increasingly dependent on information technology systems and infrastructure. Actual or attempted security breaches, unauthorized disclosure, or denial-of-service attacks could result in material loss of business, substantial legal liability, or significant reputational harm.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.65 $B | 5.15 $B | +9.85% |
Cost of Revenue $B | 2.20 $B | 2.09 $B | +5.28% |
Gross Profit $B | 3.45 $B | 3.05 $B | +12.99% |
Operating Income $B | 1.89 $B | 1.69 $B | +11.95% |
Net Income $B | 1.52 $B | 1.40 $B | +8.75% |
EPS (Basic) $ | 10.47 $ | 9.55 $ | +9.63% |
EPS (Diluted) $ | 10.43 $ | 9.51 $ | +9.67% |
R&D Expense $M | 378.29 $M | 331.28 $M | +14.19% |
SG&A Expense $B | 1.12 $B | 0.99 $B | +12.74% |
Answers draw on this SEC filing and the data on this page
RMD reported strong financial performance in Q3 FY2026, with significant revenue growth and improved margins, driven by increased sales and effective cost management.
RMD reported strong financial performance in Q2 FY2026 with significant growth in revenue and net income, driven by increased operational efficiency and robust market demand.
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