ResMed Inc. reported fiscal second‑quarter 2026 results that surpassed analyst expectations, with headline revenue of $1.42 billion—an 11% year‑over‑year increase and 9% on a constant‑currency basis. Non‑GAAP gross margin rose 310 basis points to 62.3%, while GAAP gross margin climbed 320 basis points to 61.8%. Diluted earnings per share were $2.81, beating the consensus estimate of $2.68 by $0.13, or 4.9%.
Revenue growth was driven by a 7% constant‑currency increase in global device sales and a 14% rise in masks and other sales, while residential care software contributed 51% of total revenue. The mix shift toward higher‑margin software and the continued demand for sleep‑apnea devices in more than 140 countries helped lift top line growth beyond the 1.39‑1.40 billion range forecast by analysts.
The 310‑basis‑point gross‑margin expansion reflects a combination of component cost reductions, manufacturing and logistics efficiencies, and a modest foreign‑exchange benefit. ResMed’s focus on operational excellence and pricing power allowed the company to maintain margin growth even as raw‑material costs rose, reinforcing its competitive position in the connected‑health market.
The earnings beat can be attributed to disciplined cost management and a favorable product mix. GAAP EPS matched the consensus estimate, while non‑GAAP EPS exceeded expectations thanks to higher software revenue and lower operating expenses. The company’s ability to keep operating costs in check while expanding its digital‑health ecosystem underpins the stronger-than‑expected earnings.
Management guided fiscal 2026 revenue to $4.40 billion, up from the prior $4.14 billion range, and forecast a gross margin of 62%‑63%, signaling confidence in sustained demand and margin resilience. The guidance reflects expectations of continued growth in the digital‑health platform and the impact of GLP‑1 medications as a tailwind for CPAP usage.
CEO Mick Farrell highlighted the role of GLP‑1 drugs in driving higher CPAP adoption, noting that patients on both GLP‑1 and CPAP are 10‑11% more likely to start therapy and maintain higher resupply rates. He also announced the FDA‑cleared Comfort Match, an AI‑enabled comfort‑setting recommender within the myAir platform, underscoring ResMed’s commitment to AI‑driven patient care.
After the results, the market reacted with a modest 0.51% dip in aftermarket trading, a typical pattern when earnings beat expectations but investors had already priced in the upside. The slight pullback reflects cautious profit‑taking rather than a fundamental concern about the company’s performance.
ResMed also declared a quarterly cash dividend of $0.60 per share, repurchased $175 million of stock in the quarter, and recorded a $6 million restructuring charge related to workforce planning. The company’s effective tax rate is projected to remain between 21% and 23% for fiscal 2026.
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