Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Resmed Shares Advance on ASX as Earnings Growth Puts Outlook in Focus
Highlights
Resmed Inc. (ASX: RMD) shares traded at a current market price (CMP) of AU$36.135, representing a gain of 2.1%, following its first-quarter FY2027 results announced on 30 October 2026. Higher sales and earnings supported the update, while softer cash generation and operating margin pressure put the sustainability of growth in focus.
Sales Growth Supports Earnings
Revenue for the quarter ended 30 September 2026 increased 6% to US$1,415 million, compared to US$1,336 million a year earlier. Core constant currency revenue growth, which excludes specified acquisition, disposal and exchange-rate effects, reached 7%.
Net income climbed 20% to US$418 million. Diluted earnings per share on a GAAP basis reached US$2.92, up 23% compared to the previous corresponding period. On a core constant currency basis, Sleep and Breathing Health revenue grew 7% in the Americas and 8% across other markets. Residential Care Software recorded 5% growth.
Profitability Shows Contrasting Trends
GAAP gross margin reached 61.5%, compared to 61.2%, while productivity improvements helped lift non-GAAP gross margin by 50 basis points to 62.5%.
Operating profitability was less favourable. GAAP operating margin narrowed to 32.0%, compared to 33.4%, and non-GAAP operating margin slipped to 35.8%, compared to 36.1%. These movements highlight the need to balance business investment with expense discipline.
Cash Generation Funds Shareholder Returns
Operating cash flow decreased 8% to US$422 million, while free cash flow fell 10% to US$374 million. Together with MatrixCare disposal proceeds, cash generation supported more than US$1 billion in dividends and share repurchases.
Resmed declared a quarterly dividend of US$0.66 per common share, corresponding to US$0.066 per ASX CDI before currency conversion. The dividend goes ex-dividend on 11 November, with a 12 November record date and payment on 17 December 2026.
Outlook
FY2027 guidance remains unchanged, targeting revenue of US$5.75–5.85 billion, core constant currency growth of 5%–7%, and non-GAAP diluted earnings per share of US$12.00–12.25. The AirTouch F40 launch and broader digital health initiatives support expansion, while margins and cash conversion remain central to assessing progress.
Note- All data presented is based on information available at the time of writing.
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