What Does ResMed’s (ASX:RMD) Latest Annual Report Mean for Investors?

Sonal Goyal

20 October 2026 04:52 PM AEDT

What Does ResMed’s (ASX:RMD) Latest Annual Report Mean for Investors?

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Key highlights

ResMed reported FY2026 Revenue up 10% to US$5.7 billion, and non-GAAP diluted EPS up 17% to US$11.17.
Free Cash Flow was US$1.6 billion, and US$1.0 billion was returned to shareholders in FY2026.
The quarterly Dividend was increased 10% to US$0.66, and more than US$1.85 billion is guided to be returned in FY2027.

ResMed Inc. (NYSE: RMD; ASX: RMD) announced results for its quarter and fiscal year ended 30 June 2026 on 6 August 2026. The press release covered revenue, margins, cash flow, Capital returns and Business changes. All figures are in US dollars.

About ResMed

ResMed makes devices and software for sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions, and is headquartered in San Diego. It sells masks, devices and digital health products through global channels.

Full-year results

FY2026 revenue rose 10% to $5.7 billion, or 8% in constant currency. GAAP gross Margin rose 170 basis points to 61.1%, and non-GAAP gross margin rose 240 basis points to 62.4%. GAAP Operating Margin was 33.4%, up 70 basis points, and non-GAAP operating margin was 36.1%, up 180 basis points. GAAP diluted EPS was $10.43, and non-GAAP diluted EPS was $11.17, up 17%.

Operating cash flow was $1.8 billion and free cash flow was $1.6 billion.

Fourth quarter

Fourth-quarter revenue rose 9% to a record $1.5 billion, up 8% in constant currency. GAAP diluted EPS was $2.64, up 2%, and non-GAAP diluted EPS was $2.95, up 16%.

Capital returns and portfolio changes

ResMed returned $1.0 billion to shareholders through repurchases and dividends in FY2026, an increase of more than 70%. It announced a 10% increase in the quarterly dividend to $0.66 and guided to more than $1.85 billion of capital returned in FY2027.

The company agreed to sell its MatrixCare business, with the transaction expected to close in the first quarter of fiscal 2027. It completed the Acquisition of Noctrix Health, which sells a wearable therapy for restless leg syndrome, and partnered with Oura to expand access to sleep health education.

Risks to consider

Results depend on Demand for sleep and respiratory devices, reimbursement and regulatory settings, and competition. GAAP and non-GAAP measures differ, with GAAP EPS growing more slowly in the fourth quarter at 2% against 16%.

The MatrixCare sale and the Noctrix acquisition involve closing and integration risks, and capital returns above US$1.85 billion depend on cash generation.

Catalysts to watch

Items to watch include closing of the MatrixCare sale in the first quarter of fiscal 2027, integration of Noctrix Health, the capital return of more than US$1.85 billion, margin trends, and the next quarterly result.

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