Highlights

• ResMed slipped 0.98% to $31.775 on 4 September 2026

• FY2026 Revenue reached US$5.7 billion, a 10% increase year-on-year

• GAAP gross Margin increased 170 basis points to 61.1%

• Free Cash Flow was US$1.6 billion for FY2026

ResMed Inc (ASX:RMD) eased 0.98% to $31.775 on 4 September 2026, giving back some ground despite the company having reported a strong FY2026 full-year performance marked by double-digit revenue growth and significant free cash flow generation. The pullback may reflect broader profit-taking rather than any fundamental concern.

About the Company

ResMed is a global leader in cloud-connected medical devices for the treatment of sleep apnoea, chronic obstructive pulmonary disease and other chronic diseases. Headquartered in San Diego, California, ResMed develops and sells a comprehensive range of devices including CPAP machines, masks, humidifiers and software solutions. The company also operates a significant software-as-a-service division providing digital health and out-of-hospital care management platforms. ResMed is listed on the ASX as CDIs and on the NYSE.

Key Developments

ResMed reported FY2026 revenue of US$5.7 billion, an increase of 10%, with constant-currency growth of 8%. GAAP gross margin increased 170 basis points to 61.1%, while GAAP Operating Margin reached 33.4%. Diluted GAAP Earnings Per Share were US$10.43, while Operating Cash Flow was US$1.8 billion and free cash flow was US$1.6 billion.

Key Catalysts to Watch

• Continued penetration of the global sleep apnoea treatment market

• Growth in the software and out-of-hospital care segment

• Guidance updates for FY2027 revenue and margin expectations

• Any developments around GLP-1 drug impacts on sleep apnoea patient volumes

Risks

• Potential disruption from GLP-1 weight-loss drugs reducing sleep apnoea prevalence

• Competition from Philips and other CPAP device manufacturers

• Currency risk given significant USD earnings and global distribution

• Supply chain constraints affecting device Manufacturing and delivery

Conclusion

ResMed's FY2026 numbers are impressive by any measure — 10% revenue growth, margin expansion and US$1.6 billion in free cash flow underscore the durability of its Business model. The 0.98% dip on 4 September is unlikely to concern long-term investors. The key watch-item for 2026–27 remains the interplay between GLP-1 drug adoption and its core sleep apnoea market, alongside continued SaaS segment growth. RMD remains a core holding for healthcare sector investors.