ResMed booked an 11% increase in third quarter revenue to USD1.4 billion (about AUD1.9 billion), up from USD1.2 billion a year earlier, supported by strong product demand and tight execution. For the three months to 31 March, net income rose 9% to USD398 million, compared with USD365 million in the prior corresponding period.
Gross margin widened by 290 basis points to 62.2%, up from 59.3%, while income from operations climbed 17% to USD499 million versus USD426 million. Research and development spending grew 12% to USD94.3 million, and diluted earnings per share increased 10% to USD2.75 from USD2.48.
Growth in the quarter leaned heavily on higher volumes of sleep devices, masks and accessories, particularly across the US, Canada and Latin America, where revenue advanced 9%. Management attributed the margin expansion to ongoing cost reduction initiatives, manufacturing and logistics efficiencies, plus supportive foreign exchange moves.
ResMed’s shares were down 4.27% to AUD28.51 in afternoon trade as the market digested the results and leadership changes. An analyst at RBC Capital Markets kept an outperform rating and a price target of AUD31.40, noting that most key metrics exceeded the firm’s internal forecasts.
Leadership transition added another layer to the story, with ResMed naming a new chief financial officer effective 4 May. The incoming executive replaces the long serving CFO, who is retiring after 27 years with the business, closing out a long stretch of financial stewardship.
Some investors are concerned that the departure of such a long tenured finance leader could inject uncertainty into future execution, even as operational momentum remains strong. Market commentary suggests that this governance shift is muting what might otherwise have been a more decisive share price reaction to the earnings beat.
