ResMed Inc.

ResMed reported Q4 fiscal 2026 group revenue of $1.5 billion, up 9% headline and 8% constant-currency. Non-GAAP EPS increased 16% to $2.95. Non-GAAP gross margin was 62.3%, up 90 basis points year over year; operating margin was 35.2%, down 10 basis points. Full-year FY2026 revenue grew 10% headline and 8% constant-currency, non-GAAP EPS grew 17%, and free cash flow was $1.6 billion. For Q4, free cash flow was $404 million, and the company ended with about $1.5 billion of cash. Looking to FY2027, management guided to core constant-currency revenue growth of 5% to 7%, reported revenue of $5.75 billion to $5.85 billion, and non-GAAP EPS of $12 to $12.25. Gross margin is expected to expand in the low double digits for the full year, with slight operating margin expansion; Q1 should see slight year-over-year gross margin contraction and seasonal sequential revenue softness. Management said the Astral field action creates about a 130 basis point revenue headwind, or around $75 million, and about a 15-cent EPS headwind, both embedded in guidance.

Mick Farrell framed the quarter as part of a broader transformation story: ResMed is pushing a digital sleep-health ecosystem, expanding into wearables-led awareness, GLP-1-related patient flow, and deeper clinician education. He highlighted early traction from the Oura partnership, continued rollout of AirSense 11 and AirCurve 11, and the Noctrix acquisition as examples of expanding the company’s reach beyond traditional CPAP. His tone was upbeat and confident, repeatedly emphasizing underpenetrated markets, strong execution, and a long runway through the company’s 2030 strategy.

Aaron Bloomer gave the financial details and guidance: Q4 revenue was $1.5 billion, gross margin 62.3%, operating margin 35.2%, EPS $2.95, and free cash flow $404 million. He attributed the gross margin improvement to supply-chain productivity and efficiency that offset inflation, while noting the quarter also included a $42 million Astral provision that was excluded from non-GAAP results. For FY2027, he guided to $5.75 billion to $5.85 billion of reported revenue, $12 to $12.25 of non-GAAP EPS, low-double-digit gross margin expansion, slight operating margin expansion, and capital expenditures of $160 million to $180 million. He also said ResMed plans $1.5 billion of share repurchases, including a $450 million ASR tied to MatrixCare sale proceeds, and expects total shareholder returns above $1.85 billion.

Analysts focused on three issues: gross margin sequencing, the mix of price versus volume in the revenue outlook, and how much Astral would weigh on FY2027. Management said sequential gross margin pressure was mainly from rising inflation in electronics and freight plus about a 20 bps FX headwind, while still expecting full-year margin expansion from productivity, modest pricing, and distribution optimization. On growth, they stressed that volume remains the main driver and that price increases are expected to be very modest; they also said the underlying business, excluding Astral, MatrixCare, and Noctrix effects, implies stronger core growth than the headline guide. Management quantified Astral’s FY2027 impact as about $75 million of revenue, roughly 130 bps of growth drag, and about 15 cents of EPS headwind.