Resmed Inc
ASX:RMD
Resmed Inc
ResMed Inc. has built its legacy on a profound, technological commitment to improving the lives of millions worldwide who suffer from sleep-related breathing disorders. Emerging as a beacon in the field of medical device innovation, the company is renowned for its focus on designing and manufacturing equipment to treat sleep apnea, a condition where breathing repeatedly stops and starts during sleep. Their product line, which includes continuous positive airway pressure (CPAP) devices, ventilators, and masks, caters to hospitals, home healthcare settings, and individuals. By addressing this critical health issue, ResMed doesn't just deliver therapeutic equipment; it offers a lifeline to those battling sleep health challenges, ensuring that restful nights translate into healthier days.
The company's revenue model pivots around an integrated approach combining hardware sales, software solutions, and cloud-connected offerings. Through its software, ResMed analyzes vast pools of patient data, enabling healthcare providers to tailor and improve therapeutic protocols, thus driving the efficacy of treatment plans. The increasing turn towards digital health technologies has also opened new avenues, with the company's cloud platforms and analytics delivering value-added insights to care providers. This convergence of medical equipment and digital technology provides ResMed not just a steady growth trajectory, but also positions it at the forefront of a healthcare evolution, turning data-driven intelligence into actionable health solutions.
ResMed Inc. has built its legacy on a profound, technological commitment to improving the lives of millions worldwide who suffer from sleep-related breathing disorders. Emerging as a beacon in the field of medical device innovation, the company is renowned for its focus on designing and manufacturing equipment to treat sleep apnea, a condition where breathing repeatedly stops and starts during sleep. Their product line, which includes continuous positive airway pressure (CPAP) devices, ventilators, and masks, caters to hospitals, home healthcare settings, and individuals. By addressing this critical health issue, ResMed doesn't just deliver therapeutic equipment; it offers a lifeline to those battling sleep health challenges, ensuring that restful nights translate into healthier days.
The company's revenue model pivots around an integrated approach combining hardware sales, software solutions, and cloud-connected offerings. Through its software, ResMed analyzes vast pools of patient data, enabling healthcare providers to tailor and improve therapeutic protocols, thus driving the efficacy of treatment plans. The increasing turn towards digital health technologies has also opened new avenues, with the company's cloud platforms and analytics delivering value-added insights to care providers. This convergence of medical equipment and digital technology provides ResMed not just a steady growth trajectory, but also positions it at the forefront of a healthcare evolution, turning data-driven intelligence into actionable health solutions.
Revenue Growth: ResMed delivered 11% headline revenue growth in Q2, or 9% in constant currency, with strong contributions across devices, masks, and software.
Margin Expansion: Gross margin expanded by 110 basis points year-over-year, reaching 62.3% in Q2, driven by cost improvements and operational efficiency.
EPS Strength: Diluted earnings per share grew 16% year-over-year, reflecting double-digit bottom line performance.
Positive Guidance: Gross margin guidance was raised to 62–63% for fiscal 2026; share repurchase guidance increased to over $600 million for the year.
Mask & Accessory Growth: U.S. mask and accessories sales rose 16%, with strong adoption of new fabric masks and double-digit growth even excluding VirtuOx acquisition effects.
GLP-1 Impact: Management emphasized that patients on GLP-1 medications are more likely to start and stay on CPAP therapy, with increased resupply rates seen at three years.
Strong Cash Flow & Capital Return: Operating cash flow reached $340 million; $263 million returned to shareholders through dividends and buybacks in Q2.
