Resmed Inc. (ASX:RMD): Quarterly Earnings Growth and MatrixCare Divestment

Aditi Sarkar

30 October 2026 08:06 PM AEDT

Resmed Inc. (ASX:RMD): Quarterly Earnings Growth and MatrixCare Divestment

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Revenue increased 6% year on year to $1,415 million in the September 2026 quarter.
GAAP diluted earnings per share increased 23% year on year to $2.92.
The sale of the MatrixCare business was completed during the quarter.
Operating cash flow reached $422 million, while free cash flow was $374 million.
FY27 revenue and non-GAAP earnings guidance remained unchanged.

Resmed Inc. develops connected devices, masks and digital solutions for sleep and breathing health, alongside software for out-of-hospital care providers. The company reported its first-quarter FY27 results for the three months ended 30 September 2026, disclosing revenue growth, higher net income and completion of the MatrixCare divestment. For Resmed Inc. (ASX:RMD), the quarterly figures also provide context for its unchanged full-year guidance and its continuing focus on sleep and breathing health.

Revenue Across Devices, Masks and Software

Quarterly revenue for Resmed Inc. (ASX:RMD) increased to $1,415 million from $1,336 million in the corresponding period, a reported rise of 6% year on year. On a core constant-currency basis, revenue increased 7%.

Sleep devices generated $716 million of revenue, an increase of 9% year on year, while masks and other products contributed $540 million, up 10%. Taken together, the global sleep category generated $1,256 million, compared with $1,144 million a year earlier.

Within Sleep and Breathing Health, the Americas generated $833 million, up 8% on a reported basis, and the rest of the world generated $426 million, also up 8%. Residential Care Software contributed $155 million, down 7% as reported, although its core constant-currency measure increased 5%.

Earnings, Cash Flow and Capital Returns

Net income for Resmed Inc. (ASX:RMD) was $418 million, compared with $349 million in the corresponding quarter, representing 20% year-on-year growth. GAAP diluted earnings per share rose 23% to $2.92 from $2.37. Non-GAAP diluted earnings per share increased 14% to $2.91, against $2.55 in the previous corresponding period.

Gross margin was 61.5%, compared with 61.2% a year earlier. Non-GAAP gross margin increased from 62.0% to 62.5%, or 50 basis points. Operating income increased to $453 million from $447 million, although the reported operating margin decreased to 32.0% from 33.4%.

Operating cash flow was $422 million, below $457 million in the comparative quarter. Free cash flow was $374 million, compared with $414 million. Resmed Inc. (ASX:RMD) reported returning more than $1.0 billion to shareholders through repurchases and dividends during the quarter, supported by cash generation and proceeds from its business divestment.

Portfolio Changes and FY27 Guidance

Resmed Inc. (ASX:RMD) confirmed that it completed the previously announced sale of MatrixCare, a software business serving care providers outside hospital settings. The transaction changed the composition of its Residential Care Software activities, making the distinction between reported and core performance particularly relevant when comparing the September-quarter figures.

The company also announced the US launch of its AirTouch F40 fabric CPAP mask. That product development sits within Resmed's existing sleep therapy activities rather than representing a change to its reported quarter-end results.

For FY27, the company maintained core constant-currency revenue growth guidance of 5% to 7%, reported revenue guidance of $5.75 billion to $5.85 billion, and non-GAAP diluted earnings-per-share guidance of $12.00 to $12.25. These are the company's published guidance ranges, not outcomes already achieved.

Key Insights

The September-quarter update distinguishes growth in Resmed Inc. (ASX:RMD)'s principal device and mask businesses from the portfolio effects evident in software revenue. Revenue, net income and diluted earnings per share increased, while operating and free cash flow decreased compared with the previous corresponding period. Completion of the MatrixCare sale and unchanged FY27 guidance provide further context for the company's operating priorities.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.