Resmed reported first-quarter results for the three months ended 30 September 2026, with core constant currency revenue growing 7% year over year and non-GAAP earnings per share rising 14%, the company said in a statement to investors. Non-GAAP gross margin expanded by 50 basis points, exceeding internal expectations after supply chain productivity initiatives were executed earlier than planned and expansion costs at its Indianapolis facility were rephased.
The quarter's margin performance included a temporary 30 basis point benefit from the timing of Indiana facility investment, which management said would reverse in the second quarter and result in a marginally lower gross margin. Free cash flow and proceeds from the MatrixCare divestiture together funded innovation investment and a shareholder return exceeding $1 billion during the quarter. The company said shareholders should receive over $1.85 billion across the full fiscal year through dividends and share buybacks.
Chairman and CEO Mick Farrell said the company began fiscal year 2027 with sustained global demand for sleep and breathing health products and solid operational execution. The ex-dividend date is 11 November 2026 for both common stockholders and CDI holders, with ASX-listed CDI holders receiving the quarterly dividend in Australian dollars at the exchange rate on 12 November, the record date. An ASX waiver allows the company to postpone register conversion processing between common stock and CDIs across 11 and 12 November.
Resmed set aside $42 million as a reserve for the Astral field safety corrective action and recorded $29 million in restructuring and transformation charges tied to stranded costs from the MatrixCare divestiture. The company said the divestiture was intended to accelerate growth and profitability within its core residential care software business, specifically Brightree and MEDIFOX DAN. Management said the Astral corrective action focuses on serving patients already using the device rather than pursuing new sales, and flagged a 130 basis point drag on full-year revenue growth guidance of 5% to 7% from ceasing Astral device sales.
The first AirSense 11 manufactured in Atlanta marks a shift toward domestic production, with management saying the plant achieves landed cost parity with Singapore-based production through extensive robotics and automation. The Atlanta operation acts as a buffer against supply chain disruptions and potential tariff changes while maintaining unit economics, the company said. Management said inflationary pressure in electronic components is continuing and is likely to intensify across the rest of the fiscal year.
Management said patients taking GLP-1 medications are 11% more likely to start CPAP therapy and show higher long-term resupply adherence, treating the medication cohort as a patient funnel. The AirTouch F40 fabric mask has shown a 6% improvement in therapy adherence compared with traditional silicone equivalents, management said, while partnerships with consumer wearable brands including OURA and Eight Sleep are converting undiagnosed users into clinical sleep assessment pathways. Management said a tailwind from France's fleet renewal cycle is expected to reverse and become a drag in the second half of the fiscal year once that renewal cycle ends.
Australian investors holding CDI units on the ASX will receive their dividend payment converted to local currency at the 12 November exchange rate, with trading without the dividend entitlement beginning 11 November.
Official statements: Investor
Reporting: Yahoo Finance
Written by Pick & Scroll News from the reporting and documents linked above.
