Gross margin up 290 bps to 61.5%; non-GAAP gross margin up 280 bps to 62.0%
Income from operations increased 15%; non-GAAP income from operations up 19%
Diluted earnings per share of $2.37; non-GAAP diluted earnings per share of $2.55
Operating cash flow of $457 million
Note: A webcast of Resmed's conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com
SAN DIEGO, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Resmed Inc. (NYSE:RMD, ASX: RMD)) today announced results for its quarter ended September 30, 2025.
"Our fiscal year 2026 is off to a strong start, with first-quarter performance reflecting continued progress toward our mission of helping people sleep better, breathe better and live longer and healthier, with care provided in their own home," said Resmed's Chairman and CEO, Mick Farrell.
"We delivered 9% headline revenue growth year-over-year, with a very strong 280 basis points of non-GAAP gross margin expansion, resulting in double-digit bottom-line performance: 16% non-GAAP EPS growth. These results reinforce the success of our strategy to transform healthcare in the home with hardware, software and solutions that people love.
As we advance through fiscal year 2026, we remain committed to ongoing operational excellence and strategic investment in innovation, ultimately delivering strong, sustainable, profitable growth as we provide access to life-changing care for the billions of people worldwide who need our market-leading healthcare solutions delivered right where they live."
Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts
Three Months Ended
September 30,2025
September 30,2024
% Change
ConstantCurrency(A)
Revenue
$
1,335.6
$
1,224.5
9
%
8
%
Gross margin
61.5
%
58.6
%
5
Non-GAAP gross margin(B)
62.0
%
59.2
%
5
Selling, general, and administrative expenses
259.2
239.0
8
7
Research and development expenses
87.3
79.5
10
10
Income from operations
446.5
387.3
15
Non-GAAP income from operations(B)
482.1
406.4
19
Net income
348.5
311.4
12
Non-GAAP net income(B)
374.9
325.4
15
Diluted earnings per share
$
2.37
$
2.11
12
Non-GAAP diluted earnings per share(B)
$
2.55
$
2.20
16
(A)
In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a "constant currency" basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.
(B)
See the reconciliation of non-GAAP financial measures in the table at the end of the press release.
Discussion of First Quarter ResultsAll comparisons are to the prior year period unless otherwise noted
Revenue grew by 8 percent on a constant currency basis, driven by increased demand for our portfolio of sleep devices, masks and accessories.
Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 10 percent.
Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 6 percent on a constant currency basis.
Residential Care Software revenue increased by 5 percent on a constant currency basis.
Gross margin increased by 290 basis points primarily driven by manufacturing and logistics efficiencies and component cost improvements. Non-GAAP gross margin increased by 280 basis points due to the same factors.
Selling, general, and administrative expenses increased by 7 percent on a constant currency basis. The increase in SG&A expenses was mainly due to additional expenses associated with our VirtuOx acquisition, employee costs as well as marketing and technology investments. SG&A expenses were 19.4 percent of revenue in the quarter, compared with 19.5 percent in the same period of the prior year.
We recorded $16 million of restructuring-related charges following company-wide workforce planning activities aligned with our 2030 strategic priorities. Restructuring charges were comprised of employee severance and other one-time termination benefits.
Income from operations increased by 15 percent and non-GAAP income from operations increased by 19 percent.
Net income for the quarter was $349 million and diluted earnings per share was $2.37. Non-GAAP net income increased by 15 percent to $375 million, and non-GAAP diluted earnings per share increased by 16 percent to $2.55, predominantly attributable to strong sales growth and gross margin improvement.
Operating cash flow for the quarter was $457 million, compared to net income in the current quarter of $349 million and non-GAAP net income of $375 million.
During the quarter, we paid $88 million in dividends to shareholders and repurchased 523,000 shares for consideration of $150 million as part of our ongoing capital management.
Other Business and Operational Highlights
Announced publication of a landmark study in The Lancet Respiratory Medicine projecting ~77 million U.S. adults with OSA by 2050 (~35% relative increase vs. 2020), underscoring the need for earlier diagnosis and scalable care pathways.
Received dual Red Dot Product Design 2025 awards for the AirTouch N30i (Innovative Products; Medical Design & Healthcare), reinforcing patient-centered innovation and adherence-focused design.
Launched the Sleep Institute, a global clinical insights initiative debuting at World Sleep Congress 2025 to publish independent research and inform policy and care model innovation that elevates sleep health as a public health priority.
Announced the election of Nicole Mowad-Nassar to Resmed's board (effective August 15, 2025) and the upcoming retirement of Rich Sulpizio (not standing for reelection at the November 19, 2025 Annual Meeting).
Dividend programThe Resmed board of directors today declared a quarterly cash dividend of $0.60 per share. The dividend will have a record date of November 13, 2025, payable on December 18, 2025. The dividend will be paid in U.S. currency to holders of Resmed's common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests ("CDIs") trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be November 12, 2025, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX's settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from November 12, 2025, through November 13, 2025, inclusive.
Webcast detailsResmed will discuss its first quarter fiscal year 2026 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on Resmed's Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the "Q1 2026 Earnings Webcast" to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13756529. The telephone replay will be available until November 13, 2025.
About ResmedResmed (NYSE:RMD, ASX: RMD)) creates life-changing health technologies that people love. We're relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we're redefining sleep health at Resmed.com and follow
Safe harbor statementStatements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding Resmed's projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in Resmed's periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements.
Condensed Consolidated Statements of Operations(Unaudited; $ in thousands, except for per share amounts)
Three Months Ended
September 30,2025
September 30,2024
Net revenue
$
1,335,582
$
1,224,509
Cost of sales
506,941
499,620
Amortization of acquired intangibles(1)
7,821
7,670
Total cost of sales
$
514,762
$
507,290
Gross profit
$
820,820
$
717,219
Selling, general, and administrative
259,194
238,979
Research and development
87,323
79,524
Amortization of acquired intangibles(1)
11,956
11,404
Restructuring expenses(1)
15,810
—
Total operating expenses
$
374,283
$
329,907
Income from operations
$
446,537
$
387,312
Other income (expenses), net:
Interest (expense) income, net
$
8,793
$
(1,661
)
Gain (loss) attributable to equity method investments
1,489
963
Gain (loss) on equity investments
(6,190
)
(680
)
Other, net
(3,836
)
(2,437
)
Total other income (expenses), net
256
(3,815
)
Income before income taxes
$
446,793
$
383,497
Income taxes
98,257
72,142
Net income
$
348,536
$
311,355
Basic earnings per ...
