ResMed Q4 Earnings Call Highlights

ResMed delivered strong fiscal 2026 results , with fourth-quarter revenue up 9% and non-GAAP EPS rising 16% to $2.95. Full-year free cash flow exceeded $1.6 billion, while shareholder returns surpassed $1 billion. Astral ventilator sales suspensions will weigh on fiscal 2027. ResMed expects about a $75 million revenue impact and a $0.15 EPS headwind, although sleep-device and mask growth continued across regions. Fiscal 2027 guidance calls for reported revenue of $5.75 billion to $5.85 billion and non-GAAP EPS of $12.00 to $12.25. The company also plans $1.5 billion in share repurchases, raised its quarterly dividend 10% to $0.66, and expects GLP-1 medicines, wearable partnerships and new products to support long-term sleep-health growth.

ResMed NYSE: RMD reported fourth-quarter fiscal 2026 revenue growth of 9% on a reported basis, or 8% in constant currency, as demand for sleep devices and masks increased. Non-GAAP earnings per share rose 16% to $2.95, while the company expanded gross margin despite continued inflation in electronic components and freight. For the full fiscal year ended June 30, ResMed posted 10% reported revenue growth, 8% constant-currency growth, and 17% growth in non-GAAP earnings per share. The company generated more than $1.6 billion in free cash flow and returned more than $1 billion to shareholders through dividends and repurchases, a 72% increase from the prior year.

“ResMed’s core markets remain largely under-penetrated,” Chairman and CEO Mick Farrell said, citing expanding awareness of sleep health through consumer wearables, GLP-1 medicines and clinician education.

Fourth-quarter group revenue totaled $1.5 billion. In the Americas, sleep-device revenue increased 8%, masks and other revenue rose 10%, and life-support device revenue declined 45%. In the rest of the world, sleep-device revenue rose 13%, masks and other revenue increased 12%, and life-support device revenue declined 38%. The company began providing a more detailed split of device revenue, separating sleep devices from life-support devices. Sleep devices include CPAP, APAP and bilevel products, along with Noctrix revenue, while life-support devices include ventilators such as Astral.

ResMed’s non-GAAP gross margin rose 90 basis points year over year to 62.3% in the fourth quarter. CFO Aaron Bloomer said productivity and supply-chain efficiency efforts more than offset inflation during the period, though gross margin was down about 50 basis points sequentially because of higher component and freight costs as well as a roughly 20-basis-point foreign-exchange headwind.

The company recorded a $42 million provision during the quarter for expected costs related to an Astral device field safety notice. That charge was excluded from non-GAAP financial results. Farrell said the provision represents ResMed’s estimate of the total cost of the global corrective action and that the company is prioritizing available electronic components for existing patients based on clinical need.

ResMed expects its decision to suspend new Astral sales during fiscal 2027 to create an approximately $75 million revenue headwind, or about 130 basis points of growth, and an estimated $0.15 earnings-per-share headwind. The company has not made decisions regarding Astral sales beyond fiscal 2027, Farrell said.

For fiscal 2027, ResMed forecast core constant-currency revenue growth of 5% to 7%, excluding Noctrix revenue and adjusting the comparison period for the planned sale of MatrixCare. Including the Astral impact, the company expects r...