"Our focus on enhancing patient outcomes through technology is why we see less price sensitivity in our segments, leading to sustained demand despite challenging economic conditions."
— Mick Farrell, CEO
03Detailed Report
0KW4.L
ResMed Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
ResMed Inc (0KW4.L) reported a robust performance for Q1 2025, achieving a revenue of $1.22 billion, marking a year-over-year increase of 27.15%. This quarterly performance reflects the company’s continued focus on its core sectors – Sleep and Respiratory Care and Software as a Service, adapting to evolving healthcare needs. Management has emphasized strategic investments into innovation as well as expanding their global footprint, majorly contributing to this success.
The net income surged to $311 million, a 41.90% increase compared to the previous year, underscoring effective operational efficiency and enhanced profitability. Management’s guidance suggests a positive outlook for the upcoming quarters, bolstered by new product releases and market expansions, which investors should watch closely.
Key Performance Indicators
Revenue
Increasing
1.22B
QoQ: 0.11% | YoY: 27.15%
Gross Profit
Increasing
717.22M
58.57% margin
QoQ: 1.84% | YoY: 19.52%
Operating Income
Increasing
387.31M
QoQ: 1.60% | YoY: 34.02%
Net Income
Increasing
311.36M
QoQ: 6.54% | YoY: 41.90%
EPS
Increasing
2.12
QoQ: 6.53% | YoY: 42.28%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance Overview
- Revenue: $1.22 billion, up 27.15% YoY and 0.11% QoQ
- Gross Profit: $717.22 million, Gross Margin: 58.57% (YoY: +19.52%, QoQ: +1.84%)
- Operating Income: $387.31 million, Operating Margin: 31.63% (YoY: +34.02%, QoQ: +1.60%)
- Net Income: $311.36 million, Net Margin: 25.43% (YoY: +41.90%, QoQ: +6.54%)
- EPS: $2.12, an increase of 42.28% YoY and 6.53% QoQ.
### Interpretation of Key Metrics
The revenue growth reflects the company's strong positioning within the medical equipment services sector. The gross profit and operating income margins indicate solid operational leverage and management effectiveness in controlling costs while capitalizing on new sales opportunities. The 42% growth in net income indicates not just increased sales but effective expense management across the organization, particularly in R&D and selling expenses.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.22B
27.15%
0.11%
Gross Profit
717.22M
19.52%
1.84%
Operating Income
387.31M
34.02%
1.60%
Net Income
311.36M
41.90%
6.54%
EPS
2.12
42.28%
6.53%
Key Financial Ratios
Gross Profit Margin
Good
57.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
31.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
25.40%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
4.31%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
5.99%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
2.92
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.14
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
28.64x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
6.87x
Very high premium suggests asset-light business model or lofty expectations
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