Highlights

  • Resmed Shares rose 3.13% on Friday, reflecting positive market reaction to the Q2 FY26 update.
  • The Company’s Q2 FY26 revenue increased 11% year-on-year to USD 1,422.8 million, supported by demand across sleep and respiratory care products.
  • The Company declared quarterly dividend of USD 0.60 per share with CDI holders receiving the AUD-equivalent amount.
  • Gross margin expanded by 320 basis points to 61.8%, driven by manufacturing, logistics, and component cost efficiencies.

Resmed Inc. CDI (ASX:RMD) (NYSE:RMD) shares jumped by 3.13% to AUD 37.54 on 30 January 2026, following the release of the company’s financial results for the second quarter of fiscal year 2026, covering the three months ended 31 December 2025. The shares had been trading in negative territory over the past year, down 7.31%, prior to today’s move following the earnings release. The update outlined revenue growth, margin expansion, higher earnings, and continued cash generation across its global operation.

Resmed reported revenue of USD 1,422.8 million in Q2 FY26, representing an 11% year-on-year increase, or 9% growth on a constant currency basis. Performance was supported by higher demand for sleep devices, masks, and accessories across multiple regions. Revenue in the Americas, excluding Residential Care Software, increased 11%, while Europe, Asia, and other markets recorded 6% constant currency growth.

Residential Care Software revenue grew 5% on the same basis. For the first six months of FY26, revenue reached USD 2,758.4 million, up 10% compared with the prior year period.

Gross margin for the Q2 FY26 improved to 61.8%, up 320 basis points year-on-year, while non-GAAP gross margin rose to 62.3%. The improvement reflected manufacturing and logistics efficiencies, alongside component cost benefits.

Income from operations increased 18% to USD 491.7 million, with non-GAAP income from operations rising 19%. Net income reached USD 392.6 million, compared with USD 344.6 million a year earlier. Diluted earnings per share were USD 2.68, while non-GAAP diluted earnings per share increased to USD 2.81. Over the six-month period, non-GAAP diluted earnings per share rose to USD 5.36, up 16% year-on-year.

Capital Allocation, Cost Dynamics, and Production Milestones in Focus

Operating cash flow for the quarter totalled USD 340 million. During the period, Resmed paid USD 88 million in dividends and repurchased 704,000 shares for USD 175 million as part of its capital management program.

Selling, general, and administrative expenses increased on higher employee costs, marketing, technology investments, and integration expenses related to the VirtuOx acquisition. The company also recorded USD 6 million in restructuring charges linked to workforce planning activities finalised earlier in the fiscal year.

Operational updates during the quarter included the publication of large-scale research linking increased PAP usage with reduced healthcare utilisation. Resmed also received FDA clearance for an AI-enabled digital medical device designed to personalise CPAP comfort settings and support patient adherence

Management Outlook Reflects Continued Focus on Growth and Returns

Management indicated that second-quarter performance reflected continued progress across the company’s global operations, with revenue growth, margin expansion, and earnings improvements achieved alongside ongoing investments in innovation and digital health capabilities. The update also noted that demand for sleep and respiratory care products remained supportive during the period, while operational execution contributed to improved financial outcomes as the company moved into the second half of FY2026.

The board declared a quarterly dividend of USD 0.60 per share, with a record date of 12 February 2026 and payment scheduled for 19 March 2026. CDI holders will receive the equivalent amount in Australian dollars, reflecting the 10:1 CDI-to-share ratio

Investor Takeaway

Resmed’s second-quarter FY2026 results highlight steady financial execution, with revenue growth, margin expansion, and earnings improvements delivered alongside continued investment in innovation and digital health initiatives. The combination of consistent cash generation, disciplined capital allocation, and ongoing shareholder returns through dividends and buybacks underscores management’s focus on balancing operational performance with capital management. As the company enters the second half of FY2026, demand trends across sleep and respiratory care, coupled with margin and cash flow momentum, remain central factors for investors monitoring performance progression.