Q4 revenue increased by 9% to a record $1.5 billion; up 8% on a constant currency basis

Q4 GAAP diluted earnings per share up 2% to $2.64; non-GAAP diluted earnings per share up 16% to $2.95

Returned $1.0 billion to shareholders through share repurchases and dividends during FY2026, an increase of more than 70%

FY 2026 revenue increased by 10% to $5.7 billion; up 8% on a constant currency basis

FY 2026 GAAP gross margin up 170 bps to 61.1%; non-GAAP gross margin up 240 bps to 62.4%

FY 2026 GAAP operating margin up 70 bps to 33.4%, non-GAAP operating margin up 180 bps to 36.1%

FY 2026 GAAP diluted earnings per share of $10.43; non-GAAP diluted earnings per share of $11.17, an increase of 17%

FY 2026 operating cash flow of $1.8 billion; free cash flow of $1.6 billion

Guiding to more than $1.85 billion in capital to be returned to shareholders through share repurchases and dividends during FY 2027; announced quarterly dividend increase of 10% to $0.66 per quarter

Announced agreement to sell MatrixCare business; transaction expected to close during the first quarter of Resmed’s fiscal year 2027.

Completed acquisition of Noctrix Health, a medical device company selling FDA De Novo classified wearable therapeutics for Restless Leg Syndrome, or RLS.

Partnered with ŌURA to expand access to sleep health education and pathways to care, helping more people sleep better and improve their overall health.

Following other successful launches in APAC, EMEA and the Americas, launched AirSense 11 in Taiwan. Additionally, launched AirCurve 11 ST/ST-A in the U.S. and AirTouch F30i Comfort in Brazil and Chile.

Revenue

Gross margin

Non-GAAP gross margin ^(B)

Research and development expenses

Selling, general, and administrative expenses

Non-GAAP selling, general, and administrative expenses^(B)

Income from operations

Operating margin

Non-GAAP income from operations ^(B)

Non-GAAP operating margin

Net income

Non-GAAP net income ^(B)

Diluted earnings per share

Non-GAAP diluted earnings per share ^(B)

Operating cash flow

Free cash flow^(C)

Revenue

Gross margin

Non-GAAP gross margin ^(B)

Research and development expenses

Selling, general, and administrative expenses

Non-GAAP selling, general, and administrative expenses^(B)

Income from operations

Operating margin

Non-GAAP income from operations ^(B)

Non-GAAP operating margin

Net income

Non-GAAP net income ^(B)

Diluted earnings per share

Non-GAAP diluted earnings per share ^(B)

Operating cash flow

Free cash flow^(C)

In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

Free cash flow is equal to operating cash flow less purchases of property, plant and equipment.

Strong revenue growth: Revenue increased 9% (8% in constant currency) to approximately $1.5 billion, driven by strong demand across sleep devices, masks, accessories, and software solutions.

Global momentum: Americas Sleep and Breathing Health revenue grew 8%, Rest of World Sleep and Breathing Health grew 10% in constant currency, and Residential Care Software revenue increased 2% in constant currency.

Healthy profitability: GAAP gross margin of 58.8%. Non-GAAP gross margin increased 90 basis points to 62.3%, predominantly from productivity pipeline execution. The primary difference is our $42 million Astral field safety notification expenses.

Robust earnings growth: GAAP income from operations of $449 million and GAAP diluted earnings per share of $2.64. Non-GAAP income from operations increased 8% and non-GAAP diluted earnings per share grew 16% to $2.95, predominantly attributable to strong sales growth and gross margin improvement.

Strong cash generation: Operating cash flow totaled $455 million and free cash flow totaled $404 million, supporting $287 million returned to shareholders through dividends and share repurchases while maintaining investment in innovation and growth initiatives.

Net revenue

Cost of sales

Amortization of acquired intangibles ⁽¹⁾

Masks with magnets field safety notification expenses ⁽¹⁾

Astral field safety notification expenses ⁽¹⁾

Total cost of sales

Gross profit

Research and development

Selling, general, and administrative

Acquisition and portfolio review related expenses ⁽¹⁾

Total selling, general, and administrative

Amortization of acquired intangibles ⁽¹⁾

Restructuring expenses ⁽¹⁾

Total operating expenses

Income from operations

Other income (expenses), net:

Interest (expense) income, net

Gain (loss) attributable to equity method investments

Gain (loss) on equity investments

Other, net

Total other income (expenses), net

Income before income taxes

Income taxes

Net income

Basic earnings per share

Diluted earnings per share

Non-GAAP diluted earnings per share ⁽¹⁾

Basic shares outstanding

Diluted shares outstanding

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

Assets

Current assets:

Cash and cash equivalents

Accounts receivable, net

Inventories

Prepayments and other current assets

Assets held for sale

Total current assets

Non-current assets:

Property, plant, and equipment, net

Operating lease right-of-use assets

Goodwill and other intangibles, net

Deferred income taxes and other non-current assets

Total non-current assets

Total assets

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

Accrued expenses

Operating lease liabilities, current

Deferred revenue

Income taxes payable

Short-term debt

Liabilities held for sale

Total current liabilities

Non-current liabilities:

Deferred revenue

Deferred income taxes

Operating lease liabilities, non-current

Other long-term liabilities

Long-term debt

Total non-current liabilities

Total liabilities

Stockholders’ equity

Common stock

Additional paid-in capital

Retained earnings

Treasury stock

Accumulated other comprehensive income

Total stockholders’ equity

Total liabilities and stockholders’ equity

Cash flows from operating activities:

Net income

Adjustment to reconcile net income to cash provided by operating activities:

Depreciation and amortization

Amortization of right-of-use assets

Stock-based compensation costs

(Gain) loss attributable to equity method investments, net of dividends received

(Gain) loss on equity investments

Gain on previously held equity investment

Changes in operating assets and liabilities:

Accounts receivable, net

Inventories, net

Prepaid expenses, net deferred income taxes and other current assets

Accounts payable, accrued expenses, income taxes payable and other

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Purchases of property, plant, and equipment

Patent registration and acquisition costs

Purchases of intangible assets

Business acquisitions, net of cash acquired

Purchases of investments

Proceeds from exits of investments

Proceeds (payments) on maturity of foreign currency contracts

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Proceeds from issuance of common stock, net

Purchases of treasury stock

Acquisition of consolidated subsidiary

Taxes paid related to net share settlement of equity awards

Payments of business combination contingent consideration

Repayment of borrowings

Dividends paid

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Revenue

GAAP cost of sales

Less: Amortization of acquired intangibles ^(A)

Less: Masks with magnets field safety notification expenses ^(A)

Less: Astral field safety notification expenses ^(A)

Non-GAAP cost of sales

GAAP gross profit

GAAP gross margin

Non-GAAP gross profit

Non-GAAP gross margin

Revenue

GAAP selling, general, and administrative

Less: Acquisition and portfolio review related expenses ^(A)

Non-GAAP selling, general, and administrative

As a percentage of revenue:

GAAP selling, general, and administrative expenses

Non-GAAP selling, general, and administrative expenses

GAAP income from operations

Amortization of acquired intangibles—cost of sales ^(A)

Amortization of acquired intangibles—operating expenses ^(A)

Restructuring ^(A)

Masks with magnets field safety notification expenses ^(A)

Astral field safety notification expenses ^(A)

Acquisition and portfolio review related expenses ^(A)

Non-GAAP income from operations

GAAP net income

Amortization of acquired intangibles—cost of sales ^(A)

Amortization of acquired intangibles—operating expenses ^(A)

Restructuring expenses ^(A)

Gain on previously held equity investment^(A)

Masks with magnets field safety notification expenses ^(A)

Astral field safety notification expenses ^(A)

Acquisition and portfolio review related expenses ^(A)

Tax benefit from business cessation^(A)

Income tax effect of interest and penalties on income tax refunds ^(A)

Income tax effect on non-GAAP adjustments ^(A)

Non-GAAP net income ^(A)

GAAP diluted shares outstanding

GAAP diluted earnings per share

Non-GAAP diluted earnings per share ^(A)

Resmed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, gains on previously held equity investments, field safety notification expenses, acquisition and portfolio review related expenses and associated tax effects, in addition to tax benefits from business cessation, and the tax effect of interest and penalties on tax refunds from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

Americas ^(C)

Devices

Masks and other

Total Americas ^(C)

Rest of World ^(C)

Devices

Masks and other

Total Rest of World ^(C)

Global revenue

Total Devices

Total Masks and other

Total Sleep and Breathing Health

Residential Care Software

Total

Americas ^(C)

Devices

Masks and other

Total Americas ^(C)

Rest of World ^(C)

Devices

Masks and other

Total Rest of World ^(C)

Global revenue

Total Devices

Total Masks and other

Total Sleep and Breathing Health

Residential Care Software

Total

Totals and subtotals may not add due to rounding.

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

Historically we have presented our geographical split of revenue as “U.S., Canada, and Latin America” and “Combined Europe, Asia, and other markets”. Effective this quarter, this presentation has been renamed to Americas (formerly U.S., Canada, and Latin America) and Rest of World (formerly Combined Europe, Asia, and other markets). The methodology for attributing revenue to these geographies remains unchanged. Revenue from prior periods is consistent and comparable to previous reporting.