Resmed Inc.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

Revenue rose 9% to $1.5 billion: Revenue was $1,464 million, up 9% reported and 8% in constant currency, with demand across sleep devices, masks, accessories and software solutions. Source
Non-GAAP diluted EPS up 16%: Non-GAAP diluted EPS was $2.95 against $2.55, up 16%; management attributed the increase predominantly to sales growth and gross margin improvement. GAAP diluted EPS was $2.64, up 2%. Source
Non-GAAP gross margin up 90 basis points: Non-GAAP gross margin was 62.3%, up 90 basis points; management attributed this predominantly to productivity pipeline execution. GAAP gross margin was 58.8%, down 200 basis points. Source
Quarter free cash flow down 21%: Operating cash flow was $455 million, down 16%; free cash flow was $404 million, down 21%. Purchases of property, plant and equipment were $51.1 million against $30.6 million. Source
Shareholder returns above $1 billion: Management said returns to shareholders were over $1.0 billion in FY2026 through repurchases and dividends, up more than 70%. Dividends paid were $349.7 million and treasury stock purchases $700.0 million. Source
MatrixCare sale agreed: Management announced an agreement to sell the MatrixCare business, with closing expected in the first quarter of fiscal 2027. Source
Astral notification drove GAAP gap: The $42 million Astral field safety notification expense is the primary difference between GAAP and non-GAAP gross margin, which was 58.8% GAAP against 62.3% non-GAAP. Source

“We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy,”
Resmed’s Chairman and CEO, Mick Farrell

Guidance

Area	Period	Figure	Against last quarter
Capital returned to shareholders Source	FY 2027	more than $1.85 billion
MatrixCare sale closing Source	first quarter of fiscal year 2027	first quarter of fiscal year 2027	Kept

What changed from last quarter

New: Agreement to sell the MatrixCare business announced, with closing expected in the first quarter of fiscal 2027. Source
New: Acquisition of Noctrix Health completed; the company describes its products as FDA De Novo classified wearable therapeutics. Source
New: Partnership with ŌURA announced to expand access to sleep health education and pathways to care. Source
New: Quarterly dividend increased 10% to $0.66 per share. Source
New: Geographic revenue now reported as Americas and Rest of World; the attribution method is unchanged and prior periods remain comparable. Source

Results and growth drivers

Revenue rose 9% to $1.5 billion: Revenue was $1,464 million, up 9% reported and 8% in constant currency, with demand across sleep devices, masks, accessories and software solutions. Source
Non-GAAP diluted EPS up 16%: Non-GAAP diluted EPS was $2.95 against $2.55, up 16%; management attributed the increase predominantly to sales growth and gross margin improvement. GAAP diluted EPS was $2.64, up 2%. Source
GAAP operating income fell 1%: GAAP income from operations was $449 million, down 1%, and GAAP operating margin was 30.7% against 33.7%. Non-GAAP income from operations rose 8% to $515 million. Source
Full-year revenue rose 10%: Fiscal 2026 revenue was $5.7 billion, up 10% reported and 8% in constant currency; full-year non-GAAP diluted EPS was $11.17, up 17%. Source
Net income rose 1%: Net income was $383 million against $380 million; non-GAAP net income was $428 million, up 14%. Income taxes were $90.7 million against $78.3 million. Source

Segments and regions

Americas revenue up 8%: Americas revenue was $853 million, up 8%; within it, devices rose 6% to $459 million and masks and other rose 10% to $394 million. Source
Rest of World revenue up 13%: Rest of World revenue was $439 million, up 13% (10% constant currency); devices rose 12% to $291 million and masks and other rose 16% to $148 million. Source
Residential Care Software up 3%: Residential Care Software revenue was $172 million, up 3% reported and 2% in constant currency. Source

“Year-over-year, we delivered 9% reported revenue growth, 90 basis points of gross margin expansion, and a 16% increase in earnings per share.”
Resmed’s Chairman and CEO, Mick Farrell

Costs and margins

Non-GAAP gross margin up 90 basis points: Non-GAAP gross margin was 62.3%, up 90 basis points; management attributed this predominantly to productivity pipeline execution. GAAP gross margin was 58.8%, down 200 basis points. Source
Research and SG&A grew faster than sales: Research and development expense rose 22% to $106 million, and selling, general and administrative expense rose 11% to $296 million; non-GAAP SG&A rose 10%. Source
Non-GAAP operating margin down 10 bps: Non-GAAP operating margin was 35.2% against 35.3%, down 10 basis points, while non-GAAP income from operations rose 8% to $515 million. Source
Acquisition and portfolio review costs: Acquisition and portfolio review related expenses were $5.6 million, against $2.0 million a year earlier; these are excluded from non-GAAP SG&A. Source
Full-year margins expanded: FY2026 GAAP operating margin was 33.4%, up 70 basis points; non-GAAP operating margin was 36.1%, up 180 basis points. Full-year non-GAAP gross margin was 62.4%. Source

Products and customers

AirSense 11 launched in Taiwan: AirSense 11 launched in Taiwan, following earlier launches in APAC, EMEA and the Americas. Source
AirCurve and AirTouch launches: AirCurve 11 ST/ST-A launched in the U.S., and AirTouch F30i Comfort launched in Brazil and Chile. Source
Devices and masks revenue grew: Devices revenue was $750 million, up 8% (7% constant currency); masks and other revenue was $542 million, up 11% (10% constant currency). Source
Ōura partnership on sleep education: Resmed partnered with ŌURA to expand access to sleep health education and pathways to care, with the aim of helping more people sleep better. Source

“We will use our industry-leading portfolio to improve patient outcomes, reduce healthcare costs, and drive long-term profitable growth for our shareholders.”
Resmed’s Chairman and CEO, Mick Farrell

Cash, capital and shareholder returns

Quarter free cash flow down 21%: Operating cash flow was $455 million, down 16%; free cash flow was $404 million, down 21%. Purchases of property, plant and equipment were $51.1 million against $30.6 million. Source
Full-year free cash flow $1.6 billion: FY2026 operating cash flow was $1.8 billion, up 3%, and free cash flow was $1.6 billion, down 1%. Full-year purchases of property, plant and equipment were $156.3 million. Source
Shareholder returns above $1 billion: Management said returns to shareholders were over $1.0 billion in FY2026 through repurchases and dividends, up more than 70%. Dividends paid were $349.7 million and treasury stock purchases $700.0 million. Source
Fiscal 2027 return target above $1.85 billion: Management is guiding to more than $1.85 billion returned through share repurchases and dividends in fiscal 2027. Source
Quarterly dividend raised 10%: The board declared a quarterly dividend of $0.66 per share, 10% above the previous quarterly dividend. Source
Quarter returns and cash balance: Returned $287 million to shareholders in the quarter. Cash and cash equivalents were $1.47 billion at June 30, 2026, against $1.21 billion a year earlier. Source

Strategy and portfolio changes

MatrixCare sale agreed: Management announced an agreement to sell the MatrixCare business, with closing expected in the first quarter of fiscal 2027. Source
Noctrix Health acquisition completed: Resmed completed its acquisition of Noctrix Health, which sells FDA De Novo classified wearable therapeutics for restless legs syndrome. Source
Fiscal 2027 focus on scale: Management said it will use global scale and enhanced digital capabilities in fiscal 2027 to benefit patients, providers and customers. Source
Reporting geography renamed: Geographic revenue is now reported as Americas and Rest of World, replacing the earlier names; the attribution method is unchanged. Source

Astral field safety notification

Astral notification drove GAAP gap: The $42 million Astral field safety notification expense is the primary difference between GAAP and non-GAAP gross margin, which was 58.8% GAAP against 62.3% non-GAAP. Source
Astral expense excluded from non-GAAP: The Astral expense is an adjustment in the non-GAAP reconciliation, so non-GAAP income from operations excludes it. Source
Prior-year masks item in comparison: The year-ago quarter shows a $1.5 million benefit from a masks with magnets field safety notification item; the current quarter shows none. Source

Coming up, as management said on 6 August 2026

MatrixCare sale expected to close: Closing expected during the first quarter of fiscal 2027. Source
Dividend record and payment dates: Record date August 20, 2026, with payment on September 24, 2026. Source
CDI register conversions deferred: ASX waiver lets Resmed defer conversions between common stock and CDI registers from August 19 through August 20, 2026. Source

Figures management reported

Figure	Reported
Devices revenue Source	$750 million, up 8%
Masks and other revenue Source	$542 million, up 11%
Sleep and Breathing Health revenue Source	$1,292 million, up 9%
Residential Care Software revenue Source	$172 million, up 3%

Risks management discussed

External: Foreign currency fluctuations affect reported results, so the company also presents constant currency figures. Source

Earlier plans management reported on

Not stated: The July release said the financial impact would be provided in fourth quarter filings; this release does not state a figure for that impact.

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.

As filed with the SEC

Open the filing on EDGAR

Resmed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2026

Q4 revenue increased by 9% to a record $1.5 billion; up 8% on a constant currency basis
Q4 GAAP diluted earnings per share up 2% to $2.64; non-GAAP diluted earnings per share up 16% to $2.95
Returned $1.0 billion to shareholders through share repurchases and dividends during FY2026, an increase of more than 70%

Note: A webcast of Resmed’s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com

SAN DIEGO, August 6, 2026 - Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended June 30, 2026.

“We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy,” said Resmed’s Chairman and CEO, Mick Farrell.

“Year-over-year, we delivered 9% reported revenue growth, 90 basis points of gross margin expansion, and a 16% increase in earnings per share. For full year 2026, our $1.6 billion in free cash flow enabled us to invest in innovation, strengthen our market leadership, and return more than $1 billion to our shareholders.”

“As we enter fiscal year 2027, we will leverage our global scale and enhance our digital capabilities to benefit our patients, providers, and customers. We will use our industry-leading portfolio to improve patient outcomes, reduce healthcare costs, and drive long-term profitable growth for our shareholders.”

Financial Highlights

FY 2026 revenue increased by 10% to $5.7 billion; up 8% on a constant currency basis
FY 2026 GAAP gross margin up 170 bps to 61.1%; non-GAAP gross margin up 240 bps to 62.4%
FY 2026 GAAP operating margin up 70 bps to 33.4%, non-GAAP operating margin up 180 bps to 36.1%
FY 2026 GAAP diluted earnings per share of $10.43; non-GAAP diluted earnings per share of $11.17, an increase of 17%
FY 2026 operating cash flow of $1.8 billion; free cash flow of $1.6 billion
Guiding to more than $1.85 billion in capital to be returned to shareholders through share repurchases and dividends during FY 2027; announced quarterly dividend increase of 10% to $0.66 per quarter

Other Business and Operational Highlights

Announced agreement to sell MatrixCare business; transaction expected to close during the first quarter of Resmed’s fiscal year 2027.
Completed acquisition of Noctrix Health, a medical device company selling FDA De Novo classified wearable therapeutics for Restless Leg Syndrome, or RLS.
Partnered with ŌURA to expand access to sleep health education and pathways to care, helping more people sleep better and improve their overall health.
Following other successful launches in APAC, EMEA and the Americas, launched AirSense 11 in Taiwan. Additionally, launched AirCurve 11 ST/ST-A in the U.S. and AirTouch F30i Comfort in Brazil and Chile.

RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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Financial Results and Operating Metrics

Unaudited; $ in millions, except for per share amounts

	Three Months Ended
	June 30, 2026	June 30, 2025	% Change	Constant Currency (A)
Revenue	$1,464	$1,348	9%	8%
Gross margin	58.8%	60.8%	(200) bps
Non-GAAP gross margin (B)	62.3%	61.4%	90 bps
Research and development expenses	106	86	22	19
Selling, general, and administrative expenses	296	267	11	8
Non-GAAP selling, general, and administrative expenses(B)	291	265	10	7
Income from operations	449	455	(1)
Operating margin	30.7%	33.7%	(300) bps
Non-GAAP income from operations (B)	515	476	8
Non-GAAP operating margin	35.2%	35.3%	(10) bps
Net income	383	380	1
Non-GAAP net income (B)	428	375	14
Diluted earnings per share	$2.64	$2.58	2
Non-GAAP diluted earnings per share (B)	$2.95	$2.55	16
Operating cash flow	455	539	(16)
Free cash flow(C)	404	508	(21)

	Twelve Months Ended
	June 30, 2026	June 30, 2025	% Change	Constant Currency (A)
Revenue	$5,653	$5,146	10%	8%
Gross margin	61.1%	59.4%	170 bps
Non-GAAP gross margin (B)	62.4%	60.0%	240 bps
Research and development expenses	378	331	14	12
Selling, general, and administrative expenses	1,120	993	13	10
Non-GAAP selling, general, and administrative expenses(B)	1,108	991	12	9
Income from operations	1,887	1,685	12
Operating margin	33.4%	32.7%	70 bps
Non-GAAP income from operations (B)	2,039	1,763	16
Non-GAAP operating margin	36.1%	34.3%	180 bps
Net income	1,523	1,401	9
Non-GAAP net income (B)	1,632	1,407	16
Diluted earnings per share	$10.43	$9.51	10
Non-GAAP diluted earnings per share (B)	$11.17	$9.55	17
Operating cash flow	1,806	1,752	3
Free cash flow(C)	1,650	1,662	(1)

In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

(B)

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

(C)

Free cash flow is equal to operating cash flow less purchases of property, plant and equipment.

RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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Discussion of Fourth Quarter Results

All comparisons are to the prior year period unless otherwise noted

Strong revenue growth: Revenue increased 9% (8% in constant currency) to approximately $1.5 billion, driven by strong demand across sleep devices, masks, accessories, and software solutions.
Global momentum: Americas Sleep and Breathing Health revenue grew 8%, Rest of World Sleep and Breathing Health grew 10% in constant currency, and Residential Care Software revenue increased 2% in constant currency.
Healthy profitability: GAAP gross margin of 58.8%. Non-GAAP gross margin increased 90 basis points to 62.3%, predominantly from productivity pipeline execution. The primary difference is our $42 million Astral field safety notification expenses.
Robust earnings growth: GAAP income from operations of $449 million and GAAP diluted earnings per share of $2.64. Non-GAAP income from operations increased 8% and non-GAAP diluted earnings per share grew 16% to $2.95, predominantly attributable to strong sales growth and gross margin improvement.
Strong cash generation: Operating cash flow totaled $455 million and free cash flow totaled $404 million, supporting $287 million returned to shareholders through dividends and share repurchases while maintaining investment in innovation and growth initiatives.

Dividend program

The Resmed board of directors today declared a quarterly cash dividend of $0.66 per share, representing an increase of 10% over our previous quarterly dividend. The dividend will have a record date of August 20, 2026, payable on September 24, 2026. The dividend will be paid in U.S. currency to holders of Resmed’s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests (“CDIs”) trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be August 19, 2026, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX’s settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from August 19, 2026, through August 20, 2026, inclusive.

Webcast details

Resmed will discuss its fourth quarter fiscal year 2026 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on Resmed’s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the “Q4 2026 Earnings Webcast” to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13761408. The telephone replay will be available until August 20, 2026.

About Resmed

Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.

RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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Safe harbor statement

Statements contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements - including statements regarding Resmed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business - are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in Resmed’s periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements.

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RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Net revenue	$1,463,647	$1,347,993	$5,653,443	$5,146,327
Cost of sales	552,245	520,068	2,128,040	2,060,753
Amortization of acquired intangibles	8,301	9,367	31,779	32,116
Masks with magnets field safety notification expenses	-	(1,512)	-	(1,512)
Astral field safety notification expenses	41,885	-	41,885	-
Total cost of sales	$602,431	$527,923	$2,201,704	$2,091,357
Gross profit	$861,216	$820,070	$3,451,739	$3,054,970
Research and development	105,726	86,443	378,285	331,284
Selling, general, and administrative	290,655	265,125	1,108,042	991,019
Acquisition and portfolio review related expenses	5,628	2,031	11,486	2,031
Total selling, general, and administrative	296,283	267,156	1,119,528	993,050
Amortization of acquired intangibles	10,499	11,928	45,466	45,273
Restructuring expenses	-	-	21,745	-
Total operating expenses	$412,508	$365,527	$1,565,024	$1,369,607
Income from operations	$448,708	$454,543	$1,886,715	$1,685,363
Other income (expenses), net:
Interest (expense) income, net	$20,885	$5,757	$49,914	$4,114
Gain (loss) attributable to equity method investments	2,232	1,269	6,955	3,644
Gain (loss) on equity investments	1,001	(2,533)	(15,014)	(10,299)
Other, net	1,338	(983)	(9,154)	(5,256)
Total other income (expenses), net	25,456	3,510	32,701	(7,797)
Income before income taxes	$474,164	$458,053	$1,919,416	$1,677,566
Income taxes	90,732	78,348	396,123	276,843
Net income	$383,432	$379,705	$1,523,293	$1,400,723
Basic earnings per share	$2.65	$2.59	$10.47	$9.55
Diluted earnings per share	$2.64	$2.58	$10.43	$9.51
Non-GAAP diluted earnings per share	$2.95	$2.55	$11.17	$9.55
Basic shares outstanding	144,706	146,472	145,523	146,716
Diluted shares outstanding	144,976	147,037	146,054	147,340

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.
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RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; $ in thousands)

	June 30, 2026	June 30, 2025
Assets
Current assets:
Cash and cash equivalents	$1,469,234	$1,209,450
Accounts receivable, net	1,036,233	939,492
Inventories	945,805	927,711
Prepayments and other current assets	416,081	428,952
Assets held for sale	$457,386	$ -
Total current assets	$4,324,739	$3,505,605
Non-current assets:
Property, plant, and equipment, net	$581,829	$550,790
Operating lease right-of-use assets	153,167	167,497
Goodwill and other intangibles, net	3,362,312	3,511,541
Deferred income taxes and other non-current assets	543,903	438,958
Total non-current assets	$4,641,211	$4,668,786
Total assets	$8,965,950	$8,174,391
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$308,923	$278,157
Accrued expenses	494,921	402,253
Operating lease liabilities, current	29,141	30,506
Deferred revenue	162,911	166,030
Income taxes payable	98,108	132,274
Short-term debt	259,950	9,900
Liabilities held for sale	$41,156	$ -
Total current liabilities	$1,395,110	$1,019,120
Non-current liabilities:
Deferred revenue	$170,951	$156,803
Deferred income taxes	64,640	77,682
Operating lease liabilities, non-current	137,413	153,015
Other long-term liabilities	213,028	141,520
Long-term debt	399,415	658,392
Total non-current liabilities	$985,447	$1,187,412
Total liabilities	$2,380,557	$2,206,532
Stockholders’ equity
Common stock	$764	$761
Additional paid-in capital	2,190,614	2,033,599
Retained earnings	7,255,121	6,081,490
Treasury stock	(2,778,591)	(2,073,292)
Accumulated other comprehensive income	(82,515)	(74,699)
Total stockholders’ equity	$6,585,393	$5,967,859
Total liabilities and stockholders’ equity	$8,965,950	$8,174,391

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RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; $ in thousands)

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Cash flows from operating activities:
Net income	$383,432	$379,705	$1,523,293	$1,400,723
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization	44,778	63,628	201,342	198,473
Amortization of right-of-use assets	10,343	10,660	42,810	37,338
Stock-based compensation costs	27,458	24,751	104,348	91,661
(Gain) loss attributable to equity method investments, net of dividends received	2,340	(1,269)	(2,382)	(3,644)
(Gain) loss on equity investments	(1,000)	2,533	15,014	10,299
Gain on previously held equity investment	(4,353)	-	(4,353)	-
Changes in operating assets and liabilities:
Accounts receivable, net	(37,209)	(5,215)	(96,778)	(76,684)
Inventories, net	(33,866)	(32,133)	(9,920)	(80,165)
Prepaid expenses, net deferred income taxes and other current assets	12,150	47,017	(140,260)	82,629
Accounts payable, accrued expenses, income taxes payable and other	50,558	49,089	172,715	90,958
Net cash provided by (used in) operating activities	$454,631	$538,766	$1,805,829	$1,751,588
Cash flows from investing activities:
Purchases of property, plant, and equipment	(51,127)	(30,585)	(156,285)	(89,865)
Patent registration and acquisition costs	(5,384)	(3,193)	(18,670)	(10,777)
Purchases of intangible assets	(739)	-	(2,218)	-
Business acquisitions, net of cash acquired	(325,319)	(138,578)	(350,724)	(139,248)
Purchases of investments	(2,000)	(2,013)	(28,536)	(6,416)
Proceeds from exits of investments	-	250	2,752	4,628
Proceeds (payments) on maturity of foreign currency contracts	918	40,406	8,482	41,633
Net cash provided by (used in) investing activities	$(383,651)	$(133,713)	$(545,199)	$(200,045)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	29,314	30,156	74,503	74,439
Purchases of treasury stock	(200,000)	(100,008)	(700,037)	(300,025)
Acquisition of consolidated subsidiary	-	(10,855)	-	(10,855)
Taxes paid related to net share settlement of equity awards	(388)	(590)	(21,833)	(18,077)
Payments of business combination contingent consideration	-	-	-	(855)
Repayment of borrowings	(5,000)	(5,000)	(10,000)	(40,000)
Dividends paid	(87,090)	(77,590)	(349,662)	(310,880)
Net cash provided by (used in) financing activities	$(263,164)	$(163,887)	$(1,007,029)	$(606,253)
Effect of exchange rate changes on cash	$905	$35,573	$6,183	$25,799
Net increase (decrease) in cash and cash equivalents	(191,279)	276,739	259,784	971,089
Cash and cash equivalents at beginning of period	1,660,513	932,711	1,209,450	238,361
Cash and cash equivalents at end of period	$1,469,234	$1,209,450	$1,469,234	$1,209,450

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RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

The measures “non-GAAP gross profit” and “non-GAAP gross margin” exclude amortization expense from acquired intangibles and field safety notification expenses and are reconciled below:

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenue	$1,463,647	$1,347,993	$5,653,443	$5,146,327
GAAP cost of sales	$602,431	$527,923	$2,201,704	$2,091,357
Less: Amortization of acquired intangibles (A)	(8,301)	(9,367)	(31,779)	(32,116)
Less: Masks with magnets field safety notification expenses (A)	-	1,512	-	1,512
Less: Astral field safety notification expenses (A)	(41,885)	-	(41,885)	-
Non-GAAP cost of sales	$552,245	$520,068	$2,128,040	$2,060,753
GAAP gross profit	$861,216	$820,070	$3,451,739	$3,054,970
GAAP gross margin	58.8%	60.8%	61.1%	59.4%
Non-GAAP gross profit	$911,402	$827,925	$3,525,403	$3,085,574
Non-GAAP gross margin	62.3%	61.4%	62.4%	60.0%

The measures “non-GAAP selling, general, and administrative expenses” and “non-GAAP selling, general, and administrative expenses as a percentage of revenues” exclude acquisition and portfolio review related expenses and are reconciled below:

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenue	$1,463,647	$1,347,993	$5,653,443	$5,146,327
GAAP selling, general, and administrative	296,283	267,156	1,119,528	993,050
Less: Acquisition and portfolio review related expenses (A)	(5,628)	(2,031)	(11,486)	(2,031)
Non-GAAP selling, general, and administrative	290,655	265,125	1,108,042	991,019
As a percentage of revenue:
GAAP selling, general, and administrative expenses	20.2%	19.8%	19.8%	19.3%
Non-GAAP selling, general, and administrative expenses	19.9%	19.7%	19.6%	19.3%

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RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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RESMED INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
GAAP income from operations	$448,708	$454,543	$1,886,715	$1,685,363
Amortization of acquired intangibles - cost of sales (A)	8,301	9,367	31,779	32,116
Amortization of acquired intangibles - operating expenses (A	10,499	11,928	45,466	45,273
Restructuring (A)	-	-	21,745	-
Masks with magnets field safety notification expenses (A)	-	(1,512)	-	(1,512)
Astral field safety notification expenses (A)	41,885	-	41,885	-
Acquisition and portfolio review related expenses (A	5,628	2,031	11,486	2,031
Non-GAAP income from operations	$515,021	$476,357	$2,039,076	$1,763,271

The measures “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:

	Three Months Ended		Twelve Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
GAAP net income	$383,432	$379,705	$1,523,293	$1,400,723
Amortization of acquired intangibles - cost of sales (A)	8,301	9,367	31,779	32,116
Amortization of acquired intangibles - operating expenses (A)	10,499	11,928	45,466	45,273
Restructuring expenses (A)	-	-	21,745	-
Gain on previously held equity investment(A)	(4,353)	-	(4,353)	-
Masks with magnets field safety notification expenses (A)	-	(1,512)	-	(1,512)
Astral field safety notification expenses (A)	41,885	-	41,885	-
Acquisition and portfolio review related expenses (A)	5,628	2,031	11,486	2,031
Tax benefit from business cessation(A)	-	(21,430)	-	(21,430)
Income tax effect of interest and penalties on income tax refunds (A)	-	-	-	(29,976)
Income tax effect on non-GAAP adjustments (A)	(17,059)	(5,544)	(39,453)	(20,448)
Non-GAAP net income (A)	$428,333	$374,545	$1,631,848	$1,406,777
GAAP diluted shares outstanding	144,976	147,037	146,054	147,340
GAAP diluted earnings per share	$2.64	$2.58	$10.43	$9.51
Non-GAAP diluted earnings per share (A)	$2.95	$2.55	$11.17	$9.55

Resmed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, gains on previously held equity investments, field safety notification expenses, acquisition and portfolio review related expenses and associated tax effects, in addition to tax benefits from business cessation, and the tax effect of interest and penalties on tax refunds from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

Resmed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. Resmed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. Resmed believes this information provides investors better insight when evaluating Resmed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP.

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RMD Fourth Quarter 2026 Earnings Press Release - August 6, 2026

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RESMED INC. AND SUBSIDIARIES

Revenue by Product and Region

(Unaudited; $ in millions, except for per share amounts)

	Three Months Ended
	June 30, 2026	(A)	June 30, 2025	(A)	% Change	Constant Currency (B)
Americas (C)
Devices	$459		$433		6%
Masks and other	394		359		10
Total Americas (C)	$853		$792		8
Rest of World (C)
Devices	$291		$261		12%	9%
Masks and other	148		128		16	12
Total Rest of World (C)	$439		$389		13	10
Global revenue
Total Devices	$750		$694		8%	7%
Total Masks and other	542		487		11	10
Total Sleep and Breathing Health	$1,292		$1,181		9	8
Residential Care Software	172		167		3	2
Total	$1,464		$1,348		9	8

	Twelve Months Ended
	June 30, 2026	(A)	June 30, 2025	(A)	% Change	Constant Currency (B)
Americas (C)
Devices	$1,768		$1,654		7%
Masks and other	1,513		1,343		13
Total Americas (C)	$3,281		$2,998		9
Rest of World (C)
Devices	$1,124		$1,011		11%	6%
Masks and other	572		497		15	9
Total Rest of World (C)	$1,697		$1,507		13	7
Global revenue
Total Devices	$2,892		$2,665		9%	7%
Total Masks and other	2,085		1,840		13	12
Total Sleep and Breathing Health	$4,978		$4,505		10	9
Residential Care Software	676		641		5	4
Total	$5,653		$5,146		10	8

Totals and subtotals may not add due to rounding.

(B)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

(C)

Historically we have presented our geographical split of revenue as “U.S., Canada, and Latin America” and “Combined Europe, Asia, and other markets”. Effective this quarter, this presentation has been renamed to Americas (formerly U.S., Canada, and Latin America) and Rest of World (formerly Combined Europe, Asia, and other markets). The methodology for attributing revenue to these geographies remains unchanged. Revenue from prior periods is consistent and comparable to previous reporting.

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Contacts
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