Resmed — Income Statement, Cash Flows & Balance Sheet
Is ResMed profitable?
ResMed is growing strongly and converting a rising share of revenue into profit.
| Metric | FY2025 | FY2026 | Change |
|---|---|---|---|
| Net revenue | $5,146M | $5,653M | +$507M (+9.9%) |
| Gross profit | $3,055M | $3,452M | +$397M (+13.0%) |
| Gross margin | 59.4% | 61.1% | +1.7 pts |
| Operating income | $1,685M | $1,887M | +$202M (+12.0%) |
| Net income | $1,401M | $1,523M | +$122M (+8.7%) |
Revenue grew by about 10% and gross margins expanded meaningfully, reflecting a mix shift toward higher-margin products and software. Net income grew solidly, though the effective tax rate jumped from roughly 16.5% to 20.6% — partly due to global minimum tax rules in Singapore eroding a long-standing tax advantage — which tempered the bottom-line gain relative to the operating improvement.
A one-time restructuring charge and a field safety notification expense add some noise to this year's results.
| Item | FY2025 | FY2026 | Change |
|---|---|---|---|
| Restructuring expenses | $0M | $22M | +$22M |
| Astral field safety notification | $0M | $42M | +$42M |
Both items are reported as separate line items in operating expenses, so they are clearly visible but do weigh on reported operating income. Stripping them out, the underlying operating performance is even stronger than the headline numbers suggest.
Where does ResMed's revenue come from?
Sleep and Breathing Health devices and masks are the clear engine of growth; software is a smaller but profitable contributor.
| Segment | FY2025 Revenue | FY2026 Revenue | Change |
|---|---|---|---|
| Sleep and Breathing Health | $4,505M | $4,978M | +$473M (+10.5%) |
| Residential Care Software | $641M | $676M | +$35M (+5.4%) |
| Total | $5,146M | $5,653M | +$507M (+9.9%) |
The core medical device business — selling CPAP and related respiratory equipment globally — drove nearly all the incremental revenue. Notably, ResMed has signed an agreement to sell its MatrixCare software unit for $490 million, which will shrink the software segment further once that deal closes in early FY2027.
The Americas dominate revenue, but international markets are growing at a comparable pace.
| Geography | FY2025 | FY2026 | Change |
|---|---|---|---|
| Americas | $2,998M | $3,281M | +$283M (+9.4%) |
| Rest of World | $1,507M | $1,697M | +$190M (+12.5%) |
Both regions are growing at healthy double-digit rates, suggesting broad-based demand rather than concentration in a single market.
Does ResMed generate cash?
ResMed is a powerful cash generator, but spent aggressively on buybacks and an acquisition this year.
| Cash Flow Item | FY2025 | FY2026 | Change |
|---|---|---|---|
| Operating cash flow | $1,752M | $1,806M | +$54M |
| Capital expenditure | ($90M) | ($156M) | ($66M) |
| Free cash flow (GAAP operating – capex) | $1,662M | $1,650M | ($12M) |
| Treasury stock purchases | ($300M) | ($705M) | ($405M) |
| Acquisitions, net of cash | ($139M) | ($351M) | ($212M) |
| Dividends paid | ($311M) | ($350M) | ($39M) |
Operating cash flow is nearly identical to net income, confirming high earnings quality. Capital expenditure stepped up as ResMed invested in its manufacturing footprint. The standout change is buybacks, which more than doubled as management returned cash to shareholders more aggressively.
How strong is ResMed's balance sheet?
ResMed ended the year with substantial cash and a manageable debt load that is actively shrinking.
| Item | FY2025 | FY2026 | Change |
|---|---|---|---|
| Cash and equivalents | $1,209M | $1,469M | +$260M |
| Total debt | $668M | $659M | ($9M) |
| Net cash (debt) | +$541M | +$810M | +$269M |
| Long-term debt | $658M | $399M | ($259M) |
Debt fell as a $250M senior note matured in July 2026 and was repaid, while cash continued to build. ResMed also has a fully undrawn $1.5 billion revolving credit facility available, giving it ample flexibility. The net cash position is comfortably positive and growing, which underpins the company's capacity to fund buybacks, dividends, and bolt-on acquisitions simultaneously.