Resmed — Financial Results
Revenue Grew 10% to $5.65 Billion, Driven by Strong Device and Mask Sales
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Total Revenue | $5,653M | $5,146M | +10% |
| Sleep & Breathing Health | $4,978M | $4,505M | +10% |
| Masks and other | $2,085M | $1,840M | +13% |
| Residential Care Software | $676M | $641M | +5% |
Growth was broad-based across both regions and product types, with masks outpacing devices at +13% globally. On a constant currency basis (stripping out the benefit of favorable foreign exchange moves), total growth was still a solid 8%, meaning the underlying business — not just currency tailwinds — is driving the gains.
Profit Margins Expanded Meaningfully, With Net Income Up to $1.52 Billion
| Metric | FY2026 | FY2025 |
|---|---|---|
| Gross Margin | 61.1% | 59.4% |
| Operating Margin | 33.4% | 32.7% |
| Net Income | $1,523M | $1,401M |
| Diluted EPS | $10.43 | $9.51 |
Gross margin (what's left after the cost of making products) improved by 1.7 percentage points, largely from better procurement, manufacturing, and logistics efficiency. That efficiency gain was partially offset by costs related to a product safety issue with some Astral ventilator devices, which required component replacements.
ResMed Is Selling Its MatrixCare Software Unit for $490 Million
The company signed an agreement to divest (sell off) its MatrixCare business — software used by senior living and long-term care facilities — for $490 million in cash, with the deal expected to close in the first quarter of fiscal 2027. MatrixCare contributed roughly $220 million in revenue and $28 million in operating profit in FY2026. This signals a strategic refocusing toward the core sleep and respiratory health business, and the Residential Care Software segment will shrink noticeably once the sale closes.
ResMed Acquired Noctrix, Expanding Into Restless Legs Syndrome Treatment
In June 2026, ResMed acquired Noctrix Health, which makes an FDA-cleared device for treating restless legs syndrome. This moves the company into an adjacent sleep health condition it did not previously address. The financial terms of the acquisition were not disclosed in this filing, though related costs appear in the increased SG&A (selling, general and administrative) expense line.
The Company Returned $1.05 Billion to Shareholders via Buybacks and Dividends
ResMed repurchased $700 million worth of its own shares in FY2026 — more than double the $300 million repurchased the prior year — and paid $350 million in dividends ($2.40 per share for the year). The board also raised the quarterly dividend to $0.66 per share starting September 2026, up from $0.60. The company generated $1.8 billion in operating cash flow, giving it ample room to fund these returns while maintaining $1.5 billion in cash on hand.
A Rising Tax Rate Is a Modest Headwind Going Forward
The effective tax rate (the actual percentage of profits paid in tax) rose from 16.5% to 20.6%, primarily because of the new OECD Pillar Two global minimum tax — an international agreement requiring large multinationals to pay at least 15% tax in every country they operate. ResMed also benefited from some one-time tax breaks in the prior year that did not repeat. This is a real but manageable drag on future earnings.