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.
Device and Mask Growth Offset by Astral Sales Suspension
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.
Fiscal 2027 Guidance Includes Portfolio Changes
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 reported revenue of $5.75 billion to $5.85 billion, assuming an approximately 50-basis-point foreign-exchange headwind based on rates at fiscal year-end.
ResMed expects non-GAAP earnings per share of $12.00 to $12.25, representing reported growth of about 7% to 10%. Excluding estimated dilution of approximately $0.30 from the MatrixCare divestiture and $0.20 from the Noctrix acquisition, the guidance implies core EPS growth of 12% to 14%, according to Bloomer.
- Gross margin is expected to expand by a low-double-digit number of basis points for fiscal 2027.
- Operating margin is expected to increase slightly.
- Capital expenditures are expected to rise to $160 million to $180 million as ResMed expands and automates its manufacturing footprint.
- First-quarter fiscal 2027 revenue is expected to show typical seasonal sequential declines, excluding MatrixCare, Noctrix and Astral effects.
Bloomer said ResMed expects modest price increases to contribute over the course of the year, but emphasized that volume growth remains the principal driver of the company’s expansion. The company expects supply-chain productivity, distribution-network optimization and modest pricing to support margin improvement later in fiscal 2027.
Sleep Health Strategy, New Products and GLP-1 Tailwinds
Farrell said ResMed is working to expand the path from sleep-health awareness to screening, diagnosis and therapy. The company highlighted its partnership with wearable technology company ?URA, saying approximately 13,000 users had reached resmed.com from the ?URA app. Thousands completed ResMed’s sleep assessment, and about 75% of those assessed identified as previously undiagnosed.
ResMed also continues to view GLP-1 therapies as a tailwind. Based on an analysis of more than 2.5 million de-identified patients, Farrell said patients with prescriptions for both PAP therapy and GLP-1 medicines were approximately 11% more likely to begin PAP therapy than patients prescribed PAP alone. They were also more likely to have resupply events after one and three years.
The company continued the global rollout of its AirSense 11 connected-care platform and introduced AirCurve 11 ST and ST-A bilevel platforms in the U.S. It also launched AirCurve 11 in Hong Kong, Singapore, Australia and New Zealand. In masks, ResMed cited continued rollout of AirTouch N30i and F30i fabric-technology products and strong uptake of the AirFit F40 full-face mask.
ResMed said its GenAI-powered digital sleep coach in the myAir patient app has received more than 1.5 million inquiries to date and has reduced customer-service inquiries.
Portfolio Actions and Shareholder Returns
ResMed closed its acquisition of Noctrix on June 1 and has begun integrating the business. Noctrix markets an FDA De Novo-classified device for restless legs syndrome. Farrell said the product is prescribed primarily by sleep physicians and uses the same HME and DME channels as ResMed’s other sleep-health products.
The company also expects to close the divestiture of MatrixCare on or around Sept. 1, subject to regulatory approvals. MatrixCare generated approximately $220 million in fiscal 2026 revenue and $58 million in non-GAAP operating profit. Following the transaction, ResMed expects its remaining Residential Care Software business, including Brightree and MEDIFOX DAN, to deliver high-single-digit revenue growth in fiscal 2027.
ResMed plans $1.5 billion in share repurchases during fiscal 2027, including a $450 million accelerated repurchase program expected to use proceeds from the MatrixCare sale. Its board also increased the quarterly dividend 10% to $0.66 per share. The company expects total fiscal 2027 capital returns through dividends and buybacks to exceed $1.85 billion.
About ResMed (NYSE:RMD)
ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.
ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.
