ResMed Inc.

What they do

ResMed designs, manufactures, and sells CPAP and other respiratory devices, masks, and diagnostic tools, along with cloud-based software for connected care and provider workflow management. The company operates through wholly owned subsidiaries and distributors in over 140 countries and employs approximately 11,370 people. It also owns Brightree, MEDIFOX DAN, and, until the planned sale, MatrixCare, which provide management software for home medical equipment and residential care providers.

Revenue drivers

• Sleep and breathing health devices — Core CPAP devices, masks, and accessories for obstructive sleep apnea and other respiratory disorders; this is the primary revenue source, with recent product launches like AirSense 11 and AirCurve 11.
• Software as a Service (SaaS) — Cloud-based patient management and care coordination software, including Brightree and MEDIFOX DAN, generating recurring revenue from U.S. DME/HME providers and German residential care providers.
• Diagnostics and other — Home-based diagnostic testing services via VirtuOx and new wearable therapeutic for restless legs syndrome via Noctrix Health, adding to end-to-end home healthcare offerings.

Recent performance

In Q4 fiscal 2026, revenue rose 9% year-over-year to a record $1.464 billion, with constant currency growth of 8%; GAAP diluted EPS increased 2% to $2.64 and non-GAAP EPS grew 16% to $2.95. For full-year 2026, revenue grew 10% to $5.65 billion, and GAAP net income was $1.52 billion. Operating cash flow for the year was $1.81 billion, supporting $1.0 billion returned to shareholders via buybacks and dividends. The company also expanded gross margin by 90 basis points on a non-GAAP basis in Q4.

Strategy

ResMed focuses on expanding its core sleep and breathing health portfolio through acquisitions, such as Noctrix Health (for restless legs syndrome) and VirtuOx (home diagnostics). Management is divesting MatrixCare for $490 million to sharpen focus on core growth areas, expecting the sale to close in Q1 fiscal 2027. The company continues to invest in innovation and digital capabilities, leveraging AI and cloud-connected devices to enhance patient outcomes and lower healthcare costs. It also aims to expand global access to sleep health education and care through partnerships like with URA.

Risks

• Competition and technology disruption — New and existing competitors with advanced technology could erode market share and pricing power.
• Macroeconomic and trade uncertainties — Tariffs, inflation, supply chain disruptions, and currency fluctuations can negatively impact operations and profitability.
• Healthcare consolidation and payment reform — Industry consolidation and changes in reimbursement could reduce demand and put pressure on margins.
• Product and professional liability — Potential product liability claims, and professional liability from the VirtuOx acquisition, may exceed insurance coverage.

Outlook

Management guides to return over $1.85 billion to shareholders through repurchases and dividends in fiscal 2027, including a 10% quarterly dividend increase to $0.66. The MatrixCare divestiture is expected to close in Q1 fiscal 2027, and the Noctrix acquisition integration will proceed. The company will continue to launch products across regions, such as the AirSense 11 in Taiwan and AirCurve 11 in the U.S., and expand digital health capabilities.