ResMed Inc. reported third‑quarter fiscal 2026 revenue of $1.42 billion, a 11% year‑over‑year increase from $1.30 billion in Q3 FY2025 and a 1% sequential rise from $1.40 billion in Q2 FY2026. The growth was driven by robust demand for CPAP devices and the company’s digital‑health subscription platform, while a modest decline in legacy mask sales partially offset the upside.
Earnings per share were $2.79, matching the consensus estimate of $2.79 and slightly below the $2.81 EPS reported in Q2 FY2026. The slight sequential decline was largely attributable to higher cost of sales driven by raw‑material price increases, yet the figure remains well above the $2.37 EPS recorded in Q3 FY2025.
Non‑GAAP gross margin expanded to 61.8%, up 1.9 percentage points from 59.9% in Q3 FY2025 but down 0.5 percentage points from 62.3% in Q2 FY2026. The margin improvement was supported by a higher mix of high‑margin digital‑health subscriptions and improved operating leverage, while higher cost of sales and a slight shift toward lower‑margin legacy products tempered the expansion.
ResMed reaffirmed its full‑year gross‑margin guidance of 62‑63%, unchanged from prior guidance, signaling confidence in continued margin expansion. Revenue guidance for the fiscal year remains at $1.42 billion, consistent with the company’s outlook for steady growth.
Segment‑level data show the Sleep and Breathing Health segment generated $1.10 billion in revenue, up 12% year‑over‑year, while the Residential Care Software segment contributed $0.30 billion, up 8% year‑over‑year. Growth in the former was driven by increased adoption of AI‑enabled CPAP devices, and the latter benefited from expanding digital‑health subscriptions.
The results underscore ResMed’s ability to maintain profitability while scaling its digital‑health platform, reinforcing the company’s strategic focus on AI‑powered solutions and cloud connectivity. The company’s guidance and margin outlook suggest management’s confidence in sustaining growth momentum amid modest cost pressures.
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