- 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, Aug. 06, 2026 (GLOBE NEWSWIRE) -- 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.
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 | ) | |||||||||
(A) 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.
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.
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.
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)
| 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(1) | 8,301 | 9,367 | 31,779 | 32,116 | ||||||||||
| Masks with magnets field safety notification expenses(1) | — | (1,512 | ) | — | (1,512 | ) | ||||||||
| Astral field safety notification expenses(1) | 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(1) | 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(1) | 10,499 | 11,928 | 45,466 | 45,273 | ||||||||||
| Restructuring expenses(1) | — | — | 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(1) | $ | 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 | ||||||||||
(1) See the reconciliation of non-GAAP financial measures in the table at the end of the press release.
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 | |||
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 | |||||||
RESMED INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)
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 | % | |||||||
RESMED INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)
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 | |||||||
(A) 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.
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 | |||||
(A) 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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