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Resmed Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 January 2026: press release. The quarter’s numbers.

Key takeaways

  • Revenue rose 11 percent: Revenue was $1,422.8 million, up from $1,282.1 million a year earlier, or 9% on a constant currency basis. Management attributed growth to demand for devices, masks and accessories. Source
  • Operating income rose 18 percent: Income from operations was $491.7 million, and non-GAAP income from operations was $517.2 million, up 19%. Net income was $392.6 million, up 14%. Source
  • Masks and other outpaced devices: Masks and other revenue was $529.7 million, up 16% (14% constant currency). Device revenue was $726.2 million, up 9% (7% constant currency). Source
  • Gross margin up 320 basis points: Gross margin was 61.8% against 58.6%. Non-GAAP gross margin was 62.3% against 59.2%, up 310 basis points, due to the same factors. Source
  • Operating cash flow of $340 million: Operating cash flow was $340 million, compared with $457 million in the first quarter. Six-month operating cash flow was $797 million. Source
  • Buybacks of $175 million: The company repurchased 704,000 shares for $175 million and paid $88 million in dividends. First-quarter repurchases were 523,000 shares for $150 million. Source
  • Second-half investment in innovation: Management said it will keep investing in innovation to scale digital health capabilities and expand global access to care as the company moves into the second half. Source

“Our second quarter results demonstrate the strength and resilience of our global business as we continue advancing our mission to help people sleep better, breathe better, and live longer and healthier lives in the comfort of their own home,”

Resmed's Chairman and CEO, Mick Farrell

What changed from last quarter

  • New: The company announced FDA clearance for an AI-enabled digital medical device, to be marketed as Smart Comfort, which personalizes CPAP comfort settings to improve patient adherence. Source
  • New: A SLEEP study with N=370,000+ found each additional hour of PAP use linked to a 4.1-6.2% reduction in healthcare utilization over 12-24 months in OSA patients. Source

Results and growth drivers

  • Revenue rose 11 percent: Revenue was $1,422.8 million, up from $1,282.1 million a year earlier, or 9% on a constant currency basis. Management attributed growth to demand for devices, masks and accessories. Source
  • Operating income rose 18 percent: Income from operations was $491.7 million, and non-GAAP income from operations was $517.2 million, up 19%. Net income was $392.6 million, up 14%. Source
  • Non-GAAP EPS up 16 percent: Diluted EPS was $2.68, up from $2.34; non-GAAP diluted EPS was $2.81, up from $2.43. Management attributed the increase to sales growth and gross margin improvement. Source

Segments and regions

  • US, Canada and Latin America up 11%: Revenue in this region was $835.0 million against $748.9 million a year earlier, with masks and other growing faster than devices. Source
  • Europe, Asia and other up 6 percent: Revenue in the combined region was $420.9 million, up 12% as reported. The 6% growth figure is on a constant currency basis and excludes Residential Care Software. Source
  • Residential Care Software up 5 percent: Residential Care Software revenue was $166.9 million, up 7% as reported, or 5% on a constant currency basis. Source

“These results reflect strong ongoing demand for our market-leading sleep and respiratory care devices”

Resmed's Chairman and CEO, Mick Farrell

Products and customers

  • Masks and other outpaced devices: Masks and other revenue was $529.7 million, up 16% (14% constant currency). Device revenue was $726.2 million, up 9% (7% constant currency). Source
  • Regional device and mask split: In the U.S., Canada and Latin America, devices were $448.0 million, up 8%, and masks and other were $387.0 million, up 16%. Source
  • Europe, Asia and other device growth: Devices in the combined region were $278.2 million, up 9% (5% constant currency). Masks and other were $142.7 million, up 17% (8% constant currency). Source

Costs, margins and pricing

  • Gross margin up 320 basis points: Gross margin was 61.8% against 58.6%. Non-GAAP gross margin was 62.3% against 59.2%, up 310 basis points, due to the same factors. Source
  • SG&A rose on acquisition and investment: SG&A expenses were $278.4 million, up 15% as reported and 12% constant currency. They were 19.6% of revenue against 18.8% a year earlier. Source
  • R&D spending up 12 percent: Research and development expenses were $91.0 million, up 12% as reported and 10% on a constant currency basis. Source
  • Restructuring charge of $6 million: Restructuring charges were severance and one-time termination benefits from workforce planning begun in the first quarter. The first-quarter charge was $16 million. Source

Capital, cash and shareholder returns

  • Operating cash flow of $340 million: Operating cash flow was $340 million, compared with $457 million in the first quarter. Six-month operating cash flow was $797 million. Source
  • Buybacks of $175 million: The company repurchased 704,000 shares for $175 million and paid $88 million in dividends. First-quarter repurchases were 523,000 shares for $150 million. Source
  • Quarterly dividend held at $0.60: The board declared a quarterly cash dividend of $0.60 per share, the same amount as in the first-quarter release. Source
  • Cash and receivables rose: Cash and cash equivalents were $1,417.1 million at December 31, 2025, up from $1,209.5 million at June 30, 2025. Accounts receivable were $985.6 million. Source
  • Short-term debt rose, long-term fell: Short-term debt was $259.9 million against $9.9 million at June 30, 2025. Long-term debt was $403.9 million against $658.4 million. Source

Strategy, research and digital health

  • Presented at J.P. Morgan conference: Management presented at the J.P. Morgan Healthcare Conference, covering the long-term growth case, the connected-care ecosystem, and digital sleep and respiratory health. Source
  • Second-half investment in innovation: Management said it will keep investing in innovation to scale digital health capabilities and expand global access to care as the company moves into the second half. Source
  • Digital health ecosystem reach: Management cited the growing impact of its digital health ecosystem, which it says spans more than 140 countries. Source

Coming up, as management said on 29 January 2026

  • Dividend record and payment dates: The ex-dividend date is February 11, 2026. The record date is February 12, 2026, and the dividend is payable March 19, 2026. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.