ResMed Inc (RMD) Q1 2026 Earnings Report

ResMed’s QQ1 2026 results reflect a solid start to the fiscal year with a favorable top-line trajectory and improving margin mix driven by a software/SaaS-enabled services strategy, alongside durable demand for core sleep and respiratory care devices. Revenue of $1.3356 billion rose 9.19% year over year and 3.39% quarter over quarter, supported by a high gross margin of 61.46% and an operating margin of 33.43%, yielding an operating income of $446.54 million. Net income came in at $348.54 million, delivering a net margin of 26.10%. The company generated strong operating cash flow of $457.32 million and free cash flow of $414.36 million, enabling aggressive capital allocation including a $150.01 million share repurchase and an $87.75 million dividend in the quarter. Net debt remains negative at approximately -$537.50 million, underscoring liquidity strength with cash and cash equivalents of $1.383 billion and total assets of $8.31 billion. Management continues to emphasize software-driven growth (Brightree, MatrixCare, HEALTHCAREfirst) to diversify revenue and improve patient engagement, while preserving profitability in a higher OPEX environment. This mix shift toward high-margin software and recurring services positions ResMed to capitalize on the secular demand for home-based care and remote monitoring, though near-term execution will depend on reimbursement dynamics and FX exposure in international markets.