ResMed Lifts Fiscal First-Quarter Profit 14% and Returns More Than $1 Billion

Resmed opened its fiscal 2027 with a 14% rise in non-GAAP earnings per share and returned more than $1 billion to shareholders in a single quarter, helped by proceeds from the sale of its MatrixCare business, according to the earnings release the sleep-device maker filed with an 8-K on Thursday after the market close.

Revenue for the fiscal first quarter, which ended Sept. 30, rose 6% to $1.415 billion from $1.336 billion, or 7% on a core constant-currency basis that excludes the Noctrix acquisition and the MatrixCare divestiture. GAAP diluted EPS climbed 23% to $2.92, and non-GAAP diluted EPS rose to $2.91 from $2.55.

Guidance held steady

Resmed kept its fiscal 2027 outlook unchanged from Aug. 6. It still expects reported revenue of $5.75 billion to $5.85 billion, or 5% to 7% growth on a core constant-currency basis, and non-GAAP diluted EPS of $12.00 to $12.25.

"We began fiscal year 2027 with a strong first quarter, driven by continued global demand for our sleep and breathing health solutions and ongoing execution across our business," Chairman and CEO Mick Farrell said in the release. He said free cash flow and the MatrixCare proceeds "enabled us to both invest in innovation and return more than $1 billion to shareholders during the quarter."

Masks and devices drive growth

Global sleep device revenue rose 9% to $716 million, and masks and other revenue increased 10% to $540 million. In the Americas, sleep and breathing health revenue grew 8% to $833 million, while the rest-of-world business rose 8% to $426 million.

Residential Care Software revenue fell 7% to $155 million on a reported basis but grew 5% in core constant currency, which strips out the divested MatrixCare unit.

Non-GAAP gross margin widened 50 basis points to 62.5%, which the company attributed predominantly to its productivity pipeline. GAAP operating margin narrowed to 32.0% from 33.4% as selling, general and administrative expenses rose 12% to $315 million, and research and development spending rose 15% to $103 million.

Net income increased 20% to $418.4 million. Total other income rose to $86.2 million from $256,000 a year earlier, including $62.2 million in the "other, net" line, according to the company's statement of operations.

Cash returns and dividend

Operating cash flow fell 8% to $422 million, and free cash flow declined 10% to $374 million. Cash and cash equivalents dropped to $1.01 billion at Sept. 30 from $1.47 billion at June 30.

The board declared a quarterly dividend of 66 cents a share, payable Dec. 17 to holders of record on Nov. 12. The ex-dividend date is Nov. 11.

Board and product news

Resmed said it closed the previously announced MatrixCare divestiture during the quarter and launched the AirTouch F40 fabric CPAP mask in the U.S. It also named Carol Burt lead director, effective Nov. 15, following the planned retirement of director Ron Taylor.

The company scheduled its earnings webcast for 4:30 p.m. ET on Thursday.

Sources

1. ResMed Form 8-K with fiscal first-quarter 2027 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001193125-26-437783)

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