$RMD · RESMED INC
ResMed filed its 10-Q for Q1 FY2027 (quarter ended September 30, 2026), reporting net revenue of $1.415B (+5.9% YoY), GAAP net income of $418.4M, and GAAP diluted EPS of $2.92. Results included a $61.8M gain on divestment of subsidiaries. Non-GAAP diluted EPS was $2.91, up from $2.55 in the prior-year quarter. The company repurchased $945M in treasury stock during the quarter and declared a $0.66/share dividend.
- Net revenue rose 5.9% YoY to $1.415B, with Sleep & Breathing Health products up 7.7% to $1.26B.
- GAAP diluted EPS of $2.92 includes a $61.8M gain on divestment of subsidiaries ($0.38/share).
- Non-GAAP diluted EPS was $2.91 vs $2.55 a year ago, a 14.1% increase.
- Gross margin expanded to 61.5% GAAP (62.5% non-GAAP) from 61.2% a year ago.
- Treasury stock purchases surged to $945M in the quarter, up from $150M in the prior-year period.
Extended-hours trading shows RMD at $253.00, +0.07% vs the regular close of $252.83 — a muted reaction suggesting the results were largely in line with expectations despite the headline EPS beat driven by the one-time divestment gain.
ResMed's core sleep-device franchise grew 7.7% while the company deployed nearly $1B in buybacks in a single quarter — a powerful capital-return signal for a $35.6B med-tech name.
ResMed's core Sleep & Breathing Health segment continues to benefit from elevated CPAP demand post-Philips recall, with 7.7% device revenue growth outpacing the broader med-tech sector. The aggressive $945M buyback signals management confidence in the franchise's cash generation.
Unrealized losses on designated hedging instruments surged to $81.0M (vs. $1.6M gain a year ago), signaling significant FX exposure. Residential Care Software revenue declined 6.7% YoY to $155M, a potential drag if the trend persists.