ResMed Inc
(LTS:0KW4)
$
224.6
+1.53 (+0.69%)
Market Cap: 32.38 Bil
Enterprise Value: 31.57 Bil
PE Ratio: 21.75
PB Ratio: 5.04
GF Score: 95/100 
Q4 2026 Resmed Inc Earnings Call Transcript
Aug 06, 2026 / 08:30PM GMT
Release Date Price:
$224.6
(+0.69%)
Key Points
Positve
- ResMed Inc (RMD) delivered strong Q4 FY2026 results with 9% headline revenue growth and 16% non-GAAP EPS growth, closing the fiscal year with 10% revenue growth and $1.6 billion in free cash flow.
- Gross margin expanded 90 basis points year-over-year in Q4 and 290 basis points for the full year, driven by supply chain productivity and efficiency initiatives.
- The company is increasing shareholder returns, with plans to return over $1.85 billion in FY2027 through dividends (raised 10%) and share repurchases, including a $450 million accelerated buyback.
- ResMed Inc (RMD) is leveraging partnerships and innovation to drive growth, such as the Aura wearable partnership that has brought 13,000 users to ResMed.com, with 75% previously undiagnosed, and the GenAI-powered MyAir coach with 1.5 million inquiries.
- The company is actively managing its portfolio, divesting Matrix Care to focus on core growth areas and acquiring Noctrix to expand into restless legs syndrome, a new sleep health market.
- ResMed Inc (RMD) continues to see GLP-1s as a tailwind, with data showing patients on both PAP and GLP-1s are 11% more likely to start PAP therapy and have higher resupply rates.
- The company is providing increased transparency with its first-ever revenue and EPS guidance for FY2027, including core constant currency growth of 5-7% and core EPS growth of 12-14%.
- ResMed Inc (RMD) confirmed that its products remain exempt from Section 301 tariffs under Chapter 98 protections, which is positive for patients and the business.
- The company is investing in innovation, with R&D spending up 22% in Q4 to develop next-gen devices, masks, and AI-driven solutions, and plans to expand manufacturing capacity with capex of $160-180 million.
- ResMed Inc (RMD) is seeing demographic shifts in the OSA patient population, with more women and younger patients, leading to tailored product designs and promotional efforts.
Negative
- ResMed Inc (RMD) is facing a $75 million revenue headwind in FY2027 due to the suspension of Astral device sales to support the field safety corrective action, which also impacts EPS by $0.15.
- The company took a $42 million provision in Q4 for the Astral field safety notice, which is excluded from non-GAAP results but reflects ongoing quality and compliance costs.
- Gross margin is expected to decline slightly year-over-year in Q1 FY2027 due to inflation outpacing productivity gains, with benefits from price increases and distribution optimization expected later in the year.
- The company is experiencing increased inflation in electronic components and freight costs, which is pressuring margins and necessitating modest price increases.
- Life support device revenue declined 45% in the Americas and 38% in the rest of world in Q4, reflecting the impact of the Astral field action and suspension of sales.
- ResMed Inc (RMD) is guiding to a slower core revenue growth rate of 5-7% for FY2027, down from 8% constant currency growth in FY2026, partly due to the Astral headwind and portfolio changes.
- The Matrix Care divestiture is expected to be dilutive to EPS by approximately $0.30 in FY2027, and the Noctrix acquisition will dilute EPS by $0.20.
- Free cash flow in Q4 declined 21% year-over-year due to the Astral provision, higher accounts receivable, and increased capital expenditures.
- The company faces ongoing uncertainty from macro factors, including inflation and FX headwinds, which are expected to impact results in FY2027.
- ResMed Inc (RMD) is not providing quarterly guidance, which may limit visibility for investors, and the company acknowledges that some acquisitions have not met expectations, indicating execution risk.
Operator
Hello and welcome to the Q4 Fiscal Year 2026 ResMed Earnings Conference Call. My name is Kevin and I'll be your operator for today's call.
At this time, all participants are in listening-only mode. Also, please note, this conference call is being recorded. Later, we'll conduct the question-and-answer session.
Let me hand the call over to Salli Schwartz, ResMed's Chief Investor Relations Officer.
Salli Schwartz
ResMed Inc. - Chief Investor Relations Officer
Thanks, Kevin. I want to welcome our listeners to ResMed's fourth quarter fiscal year 2026 earnings call. We are live webcasting this call and the replay will be available on the Investor Relations section of our corporate website later today.
Our earnings presentation is available online now. Please note we will be displaying our earnings presentation during our prepared remarks and then we'll post the slides to our IR website after the conclusion of our remarks.
During today's call, we will discuss several non-GAAP measures that we believe provide useful information
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